The Buyer's Agent

Tuesday 1st February 2011 1:38pm

The purpose of this article is to determine the role of the buyer's agent when considering the right real estate team of professionals to surround yourself with as a real estate investor.

A buyer's agent is, in essence, an advocate for the buyer when they are trawling the market in search of a property to add to their investment portfolio.

Not only can the appointment of a buyer's agent save you time and money in conducting property searches yourself, but these experts are also usually very well connected to industry contacts and have their ear to the ground when a not-to-be-missed bargain comes onto the market.

A buyer's agent will take the details of the property you are searching for, the money you have to spend and the time-frame in which you want to buy and set about matching a property to suit your needs and wants.

The agent can save the serious real estate investor a considerable amount of time searching for properties and act as the middle man between the buyer and the real estate agent's themselves.

The buyer's agent will usually exist by means of a commission charge along with fees for searching.

Therefore, you may pay the buyer's agent to find you a property, and when something suitable is located, you will then pay the buyer's agent a commission on the cost of the property.

It is important to remember then, in any situation where someone is paid by commission, that even though a buyer's agent may be working for you, they will also be trying to maximise their commission on each purchase.

It is for this risk of bias that many property investors choose to act as their own buyer's agent having been unable to find a buyer's agent whose track record and trustworthiness suits their needs and wants.

If you are considering the use of a buyer's agent do some careful research into the agent and check for any hidden fees that may not be readily visible upfront.

My Knowledge Tips

1. A buyer's agent is, in essence, an advocate for the buyer when they are trawling the market in search of a property to add to their investment portfolio.
2. The agent can save the serious real estate investor a considerable amount of time searching for properties and act as the middle man between the buyer and the real estate agent
3. The buyer's agent will usually exist by means of a commission charge along with fees for searching
4. It is important to remember that even though a buyer's agent may be working for you, they will also be trying to maximise their commission on each purchase.