The Power of a Buyer’s Agent for Your Property Journey!
Most New Zealanders are familiar with real estate agents as individuals responsible for selling properties - commonly known as 'listing agents'. However, the services of a buyer's agent remain relatively unfamiliar in New Zealand.
Compared to many other countries, the buyer’s agent market is underdeveloped in New Zealand. Unlike listing agents, who work for and are paid by sellers, buyer’s agents are real estate experts who assist home buyers in finding their next family home, investment property, or even that elusive property that meets specific criteria.
Buyer’s Agents are not limited to representing only the buyer. They may also serve both the seller and buyer, providing flexibility in the property search and purchase process. They can only work for one party at a time, an can only receive a commission from one party. With their extensive knowledge of the market, access to a wider range of properties, negotiation expertise, and unwavering support, utilising a buyer’s agent can greatly enhance your property buying experience. It’s time for more New Zealanders to discover the benefits of employing a buyer’s agent when embarking on their next property purchase.
Why Use a Buyer’s Agent?
Sometimes called a ‘property finder’, a buyer’s agent offers several compelling reasons to use their services, with one of the main considerations being time. Engaging a buyer’s agent can save you a significant amount of time in your property search. Instead of spending countless hours sifting through listings on Trade Me, homes.co.nz or realestate.co.nz, your buyer’s agent will take on the task of filtering options based on your specific requirements. They will conduct thorough research, screen properties, and present you with a curated selection of homes that meet your criteria. They may negotiate directly with the Vendor or the Vendor’s agent, as appropriate. This will allow you to focus your time and energy on viewing and considering the best-suited properties for your needs. If the property you wish to buy is for sale by auction, they can bid on your behalf on auction day.
Extensive Market Knowledge.
Buyer’s agents have in-depth knowledge of the real estate market, locally and nationally – and often have access to off-market properties. They provide valuable insights on neighbourhoods, property values, economic indicators like interest rates and market trends, helping you ﬁnd the right home at the right price.
A buyer’s agent will approach existing homeowners of properties that fit your criteria to determine their interest in selling, they may have access to a network of properties that may never be listed publicly.
Buyer’s agents possess not only extensive market knowledge but also invaluable negotiation expertise. With their skillful approach to negotiations, they can effectively advocate for your interests throughout the buying process. Drawing on their experience in assessing property values and analysing comparable sales, buyer’s agents are well-equipped to determine the fair market value of a property and strategically negotiate the best possible price and terms on your behalf.
Streamlined Search Process.
Instead of spending time and effort searching for properties on your own, a buyer’s agent can streamline the process. They will listen to your preferences, narrow down the options, and provide you with listings that meet your criteria, saving you time and energy. Typically, they will inspect properties, complete preliminary due-diligence, and work with the listing agent if need be to get a price indication for this ‘short list’ to present to you.
In addition to their technical expertise, buyer’s agents bring objectivity and emotional detachment to the negotiation table. They act as a buffer between you and the seller, effectively communicating and negotiating on your behalf while ensuring your best interests are prioritised. A buyer’s agent works exclusively for you and has a ﬁduciary duty to protect your interests. They provide unbiased advice and guidance throughout the buying process, ensuring you can make an informed decision.
Access to an Extensive Professional Network.
Buyer’s agents have established connections within their network which are extremely valuable to ‘tap’ into. These include other real estate professionals, financial advisers, engineers, architects, builders and developers, property inspectors, as well as solicitors and chartered accountants. They will refer you to the right trusted professional depending on what your goal for this property purchase is. We don’t know, what we don’t know – the same as we don’t know who we can rely on until we are referred or engage an expert for ourself.
Expert Guidance in Handling Contracts and Paperwork.
From the initial search to settlement, a buyer’s agent offers unwavering support. Purchasing a home involves extensive due diligence, paperwork, and contracts. A buyer’s agent excels in navigating through these documents, guiding you to understand the terms and conditions thoroughly. They assist in the preparation and careful review of contracts, always prioritising the protection of your interests. Their proactive support ensures that you have a clear understanding of the process, helping you make informed decisions and easing the overall experience of purchasing your next property.
Upholding Discretion and Preserving Confidentiality.
Discretion is a key quality of a buyer’s agent. They understand the importance of maintaining confidentiality and respecting their clients’ privacy throughout the property search and negotiation process. With discretion, the buyer’s agents ensure that sensitive information, such as budget, negotiation strategies, or personal circumstances, is handled with the utmost confidentiality. Their ability to navigate transactions discreetly allows their clients to make informed decisions without unnecessary exposure or scrutiny.
Cost-Effective Assistance: Can these Benefits come at No Additional Expense?
When considering the use of a buyer’s agent, it’s important to note that their services may be obtained without incurring direct expenses. A buyer’s agent may negotiate a commission split with the listing agent, known as a ‘conjunctional sale‘ arrangement. In this collaborative scenario, both agents work on behalf of the vendor, sharing the commission when the property is sold. Consequently, you can benefit from their expertise, guidance, and advocacy without any additional cost to you.
However, it’s important to understand that if you directly engage a buyer’s agent, a fee or commission will be involved. To formalise the working relationship, an ‘agency agreement’ must be signed, outlining the estimated commission payable, either as a percentage of the purchase price or a fixed fee – or a combination of both. You will be notified of the fees in advance. A buyer’s agent must be a licensed real estate agent and can only represent you as the buyer; they cannot act for the vendor as well in the same transaction.
By enlisting the services of a buyer’s agent, you can benefit from their keen negotiation skills, ensuring you secure the best possible price and terms for your dream home or investment property. Their expertise adds an invaluable layer of guidance and support, enabling you to navigate the complexities of real estate negotiations with confidence.
We feel using a buyer’s agent is an option more New Zealanders should consider.
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