The Less-Known Pros and Cons of Hiring a Real Estate Buyer’s Agent
It is always recommended to involve the expertise of a buyer’s agent when buying a home. Whether you are buying houses to re-sell as an investor or want to acquire a property, going through a buyer’s agent will always be your best bet.
From a professional point of view, a seller must form a solid business relationship with the buyers agent sydney before making an offer. In that case, the duo set out to make a deal that is profitable to them. If you understand that, you will agree that any buyer who approaches a listing agent directly is already at a disadvantage.
Aside from blowing out of budget, there are several other complications you will have to cope with if you choose to go solo without the aid of a professional buyer’s agent. While some are predictable, others are even unknown. The best idea? That’s to find a seasoned buyer’s agent to ensure you have the best and safest deal possible.
Meanwhile, as much as hiring a buyer’s agent benefits home buyers, many still choose to go through the purchase hassles themselves and negotiate a deal that complies with their budget. From that side, they claim it is more cost-effective to avoid the commissions charged for hiring a buyer’s agent.
Could they be wrong? Well, it’s hard to say.
In reality, not every buyer needs to hire an agent. Depending on your purchasing purpose, you may not have to bother. Moreover, a few downsides associated with working with a buyer’s agent may encourage you to go without them.
The article will expose you to the pros and cons of hiring a buyer’s agent. We will enumerate what you stand to gain with an agent, whether you are buying as an investor or owner-occupier.
The Pros of Hiring a Buyer’s Agent as an Investor
- Robust market knowledge
Buyer’s agents understand how the real estate market works. Wherever you are planning to invest, they know what works best in that neighborhood. A reliable buyer’s agent will help you make the necessary findings and advise you on the kind of property you can buy and get massive profits.
Since he works in the buyer’s interest, he will guide you on choosing the most profitable property, which location would bring the most attractive income, and how to set a competitive price. If you plan to invest huge money in real estate, hiring a buyer’s agent is better to help you solve the riddles and bring home profits.
- Easy and quick purchase
If you have once bought a home yourself in the past, you will understand how much stress it takes to get the right property and how tedious it is to go through the process from start to finish.
Don’t forget that you must first do thorough research, which usually goes beyond merely surfing the internet. Generally, the process will require you to step out and move around to locate your preferred property.
All of that requires time and money, not considering the physical and mental stress involved. And, if you are buying more than one house, the headache increases. In contrast, a buyer’s agent takes over the job of shouldering all the loads while you sit in the comfort of your home, scrolling through the screen of your mobile phone to assess your options.
- Informed Investment
Buyer’s agents are professionals. They make every investment move from a total business point of view. That means they will not overlook flaws or any sign that suggests the property would be a terrible investment in the long run.
Most buyers make investment choices with emotions. You may choose a home because of some flashy reasons while undermining its economic value, which will eventually result in loss. As an investor, you should allow a buyer’s agent purchases on your behalf. That is an excellent way to avoid making emotional decisions in business scenes.
The Cons of Hiring a Buyer’s Agent as an Investor
- High Commission
There is a saying that a delicious meal comes with huge expenses. If you want to sit in the comfort of your home while a top-rated professional runs an errand on your behalf, you’ve got to pay dearly for the service. Nothing good comes cheap.
Typically, a premium buyer’s agent will charge up to a five-figure commission. Since he would be working with the help of other professionals like mortgage brokers, property managers, solicitors, accountants, and the like, e would need money to fuel the partnership.
- Trust and loyalty issues
Although there is numerous buyer’s agent out there promising to render the best service in the world. Yet, it’s hard to find the right one that genuinely works for you with your best interest at heart. As an investor, you need to hire an individual who is ready to represent whether you are present or not. And that can be hard to get. Even if you are lucky, it will take time.
The Pros and cons of hiring a Buyer’s Agent as an Owner-Occupier
Hiring a buyer’s agent even as an owner-occupier has the same pros and cons as being an investor. The only difference is that the owner-occupier might not necessarily choose to work with an agent since he is not buying for profit. Hence, you can evade the huge commission rate and use the money to settle other essential bills.
An owner-occupier can buy from a friend or family member who wants to relocate or sell for other reasons without negotiations. Your emotions can also come to play as you don’t have much to lose.
Final thoughts
The service of a buyer’s agent can be invaluable to investors, while owner-occupiers might choose to go through the purchasing process without hiring a professional. However, allowing an agent to handle the home buying process will create a win-win situation for an investor. If you are keen to hire, do thorough research before putting your hard-earned money on the line.