Why You Shouldn’t Mistake A Sales Agent For A Buyer’s Agent

“Why is your buyer’s agent so expensive? My buyer’s agent doesn’t charge anything!” 

If your friends ever told you that, they might have mistaken a sales agent with a buyer’s agent.

One common mistake many property buyers make is assuming that a sales agent is the same as a buyer’s agent. While both are involved in the transaction, their approaches and responsibilities differ. Understanding the differences between these roles is crucial. In this blog, let’s explore why having the right expert in your corner can make all the difference in securing the best property at the best price.

Who are sales agents, and what do they do?

Sales agents are those who work in the best interests of the seller. Their primary goal is to help clients sell their property(ies) for the highest possible price.

Sales agents often manage the sales process, including marketing the property, providing pricing advice, negotiating with buyers, handling paperwork, and closing the deal.

• Marketing the property: To reach the most buyers, attract interest and maximise the sale price, sales agents need to create a marketing plan. This plan may include professional photos, floor plans, open houses, virtual tours, social media ads, etc.
• Conduct property valuation and provide pricing strategies: To determine a competitive listing price for the property, sales agents conduct a comparative market analysis. Then, they work with vendors to set the listing price.
• Negotiate with buyers/buyer’s agents: Sales agents review offers from buyers, discuss the strategies with the seller, and negotiate with buyers or their agents on behalf of the seller to secure the best possible deal.
• Navigate paperwork: they handle all the necessary paperwork, such as sales contracts and other documents.
• Close the deal: Sales agents will ensure that all necessary steps are completed before the property is transferred to the buyer.

Who are buyer’s agents, and why use a buyer’s agent?

Buyer’s agents are dedicated to representing the buyers. Their primary priority is to guide buyers through the purchasing process and get them the best property(ies) that meet their needs.

Buyer’s agents often manage the buying process, including providing market insights, negotiating with sellers or their agents, conducting property inspections and due diligence, dealing with paperwork, and closing the deal.

• Conduct research and provide market insights: They analyse current market trends, property values, economic dynamics, etc., to identify suitable options that align with the buyer’s preferences, budget, and long-term goals. 
• Negotiate with vendors/sales agents: They negotiate with the vendors or the seller’s agent on the buyer’s behalf to secure the best possible price and terms.
• Conduct property inspections and due diligence: They conduct thorough investigations and property evaluations, like checking the property’s legal, financial, and physical aspects to ensure no hidden issues or risks. 
• Dealing with the paperwork: They help buyers navigate the paperwork involved in the transaction, ensuring everything is completed correctly and on time. At the same time, they coordinate between various parties involved, including vendors or their sales agents, inspectors, mortgage brokers, conveyancers, etc.
• Closing the deal and post-purchase care: They assist the buyer throughout the closing process and provide ongoing support afterwards, such as settlement guidance and advice on renovations or development opportunities.

If you need help with purchasing a property, the buyer’s agent is the right person to go to. A buyer’s agent works to protect your interests, ensuring you make sound decisions and have a stress-free buying experience.

Three major benefits of having a good buyer’s agent on your side 

Benefit 1: Save you a heap of time and reduce your stress.

Buying a home or an investment property can be nerve-racking, especially when you’re a do-it-yourself type. A lot of work is required before and during the buying process, such as conducting research, creating strategies, organising inspections, negotiating with vendors or their agents, preparing paperwork, etc. A good buyer’s agent simplifies the process, giving you peace of mind and saving you time. They manage all these tasks and guide you through every step, from property search to closing the deal, ensuring a smooth and stress-free buying experience.

Benefit 2: Provide expert knowledge, market insights, and tailored buying advice to help you pick the best property for your needs and avoid common pitfalls.

Good buyer’s agents should have in-depth knowledge of the local property market and current trends, which they have gained through years of experience and thorough research. With a buyer’s agent on your side, you’ll have access to valuable market data and insights. A skilled buyer’s agent also provides unbiased, professional recommendations without commitment to any specific property. 

As seasoned professionals, buyer’s agents know the common dos and don’ts of buying a home or investment property. Their expertise helps you avoid costly mistakes and stay focused on the right path. Moreover, since buying a property can be emotional, a buyer’s agent ensures decisions are driven by logic, not emotion. They prioritise your best interests, assessing properties based on key criteria, which helps you make sound, strategic investments without being swayed by emotional impulses.

Moreover, if you’re a first-time homebuyer or an aspiring investor, having a buyer’s agent by your side is one of the best ways to learn about real estate investing. 

Benefit 3. Increase your chances of securing better deals by leveraging their access to exclusive buying channels, extensive industry network and negotiation expertise.

On the one hand, with exclusive relationships with sales agents and developers, buyer’s agents often have broad access to off-market properties that are not publicly listed. This advantage brings you unique opportunities with better deals that others may miss. They also have a great network of trusted professionals, including mortgage brokers, inspectors, attorneys, accountants, etc., that could help your buying process more efficiently.

On the other hand, with years of experience and a deep understanding of current market conditions, property values, and seller motivations, a buyer’s agent can expertly negotiate the best price and terms on your behalf, potentially saving you thousands of dollars. 

Three questions to ask when hiring a buyers agent

However, not all buyer’s agents are reliable and capable. Below are three questions to help you identify a good buyer’s agent.

1. How many properties do you own or have helped your clients buy? – If a buyer’s agent owns properties or has helped many clients purchase, it signals that they practise what they preach and are likely to have hands-on experience. However, it’s worth noting that just because a buyer’s agent doesn’t own property(ies) themselves doesn’t necessarily mean they’re not effective.
2. What criteria do you use when selecting a buying area or a property? – This question will give you an idea of their overall strategy and approach. Why are they buying that specific area or that house? What weightings do they put on different factors? A reliable agent should base their decisions on data-driven insights rather than gut feelings.
3. What data or evidence do you use to research and support your decisions? – This question helps you check the quality and sources of information they rely on when making decisions or providing advice.

All in all, having a buyer’s agent by your side is one of the best ways to make informed decisions, unlock your investment potential, and steer clear of costly mistakes.

Wish to know more about how a buyer’s agent can make a difference? Check out our blog “Why I’m Comfortable Buying A Property Without Seeing It Myself,” where Junge Ma shares her experience buying her first property with the help of InvestorKit.

Are you too busy with work or new to buying or investing in property? Let Australia’s best buyer’s agency take the stress out of you! At InvestorKit, we specialise in analysing local market trends and economic data to identify the best market(s) that fit your goals. With strong relationships with over a thousand sales agents nationwide, we are dedicated to securing you the best deal at a competitive price. Ready to make your investment journey hassle-free? Let’s get started today by clicking here and requesting your 15-minute FREE no-obligation discovery call!