The Advantages of using a Buyers Agent and Tenants Representative

By Fred Haggar

Property buyers and lessees
It is standard practice in Australia to appoint and pay a real estate agent to sell or lease out your property, be it commercial or residential. We have until recently been on our own when it came to dealing with multiple real estate selling agents, finding and inspecting real estate and negotiating the purchase or lease of the selected property.

Buying or leasing a property is one of the most important and stressful decisions one will ever have to make… a decision which has significant financial implications. Financial planners will tell you that at retirement, your equity in property (be it residential, commercial or both) will probably represent more than half the value of your entire portfolio. As a matter of fact, housing accounted on average for 60% of all assets, according to the “Australian Social Trends 2006” snapshot issued by the Australian Bureau of Statistics.

In ways more than one, it makes sense to appoint an expert to help you buy or lease a property. After all, if you are dealing with a selling/leasing agent whose sole objective is to entice would-be buyers or lessees into paying their highest price for a property, why would you not want the services of a skilled negotiator who knows what you want and how to achieve your objective for a fair (or better than fair) price? And that is exactly why and how buyers agents and tenants representatives have for many people, become a hassle-free way of buying or leasing their next property, be it commercial or residential.

Qualifications and experience
A Buyers agent and tenants representative should be able to offer you market knowledge and experience. After all, this is what they do every day. They should be licensed and carry professional indemnity insurance. With their background and qualifications, you are certain you are dealing with someone who knows the real estate market and can deliver what they promise. Pick up the phone and speak to their past and current clients. One aspect of their services is their method for determining the fair value price of a property. They receive no commission from the seller, lessor or agent. Why? Because they are working for you – exclusively. Their only income is the success fee you agree to pay them.

Services offered
Generally speaking, buyers agents and tenants representatives can be appointed to search out suitable properties for their clients and negotiate the purchase/leasing price of the property on your behalf. They are also regularly used to bid for clients at auctions, thereby taking the stress out of the auction while also benefiting the buyer with their expertise in auction tactics.

Time and money saved
According to the services required, fees may vary from a set fee to a basic fee plus a share in the achieved savings. These costs might be tax deductible for investors – best you speak to your accountant first. While owner occupiers are not currently entitled to this tax benefit, these services continue to attract their custom because of the time and money they save in the long run.

After all, one makes money when one buys the property, not when they sell it. As well as not having to spend the weeks (or months) looking through newspapers, internet sites, dealing with real estate agents and driving around to open properties, their experience in the industry and emotional detachment from the purchase or lease plus their negotiating skills delivers to you the right property for the best price at the most favourable terms and conditions – stress free.

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