What to expect from a buyers agent

I am thinking of using a BA. I understand it's important to have one who on the ground with intimate suburb knowledge. Before I reach out to one to discuss an engagement, after some clarity in terms of the service I should expect:

• Fee structure?
• Written commitment not to take other clients with same buying brief i.e. conflict of interest?
• Limit on # properties? E.g. say I am interested in 4 properties that week, would like each inspected and reported on. What is reasonable?
• Limit on duration of engagement? E.g. we only look for properties for xx months after which you forfeit an initial up-front payment?
• What if it's not working for me and I want to break the agreement?
• Due diligence report on properties pursued? Not some re-print of a generic internet property report or ripehouse report, I mean actual research on the property by the BA themselves, issues at a house and street level, current valuation etc. 1 page? 15 pages?
• Should they be aware of DA's that impact the property? E.g. the guy next door has submitted one? Be aware of council plans or proposed zoning changes that impact the property?
• Do I pay extra for B&P or is this included in the service - I imagine they are ordering these constantly?
• Advice on costs to fix issues and value-add opportunities?

 

Every company is different but I can let you know how we work.

Fee structure is flat fee of $14,000 for a $700,000 or below purchase price.
2% of purchase price up to $1,000,000 and anything over is calculated at 1%.

Generally wont take clients on with the same brief, if they do it should be disclosed to you that who ever signed up first will be entitled to the property first if it doesn't suit them it will be proposed to you.

In regards to limit of properties I do desktop research checking flood and bushfire maps etc before I even consider looking at the property, then check google maps/ earth etc for property surrounding to see if there is any deal breakers and only after that will I arrange an inspection. Then complete a property inspection checklist if the property is suitable and no major stand out issues. If I think its suitable will take photos and video walk through and send to the client. I will then provide comparable sales and price I think the property is worth taking into account condition of property, sellers conditions and any negotiation tactics etc for a preferable outcome for my client.

For example the other week I disregarded a number of properties on the computer based research, inspected 9 properties 2 of them off market and only 4 of them I considered would be suitable for my client, they only liked 2 and chose the one which they preferred and we made an offer and secured it. We secured that property in under a week of them engaging us and below comparable sales. We can get bogged down doing big reports for clients and can miss out on good properties in a fast paced sellers market, we inspect enough properties that minimises this. In saying that we will provide a report once our offer is accepted with all the due diligence done for the client. When things return back to a buyers market when ever that may be we will have time to present reports to clients before deciding.

You will have engaged a buyers agent for a reason generally there is no need to send them properties of interest that you want inspected as there finger should be on the pulse, but I do say to owner occupier clients in particular if a property you really like pops up please send it through to me.

Our agreement lasts for 6 months
I am yet to have a client go over 3 months to purchase but if someone was really specific on their brief eg certain street etc I could see this as a problem.

If you change your mind straight away after paying the retainer fee and no work has been done you would get your retainer back but to the buyers agent discretion if they feel they done their fair share of work retainer will be non refundable. Our retainer is $3300.00

Our property inspection report is 4 pages to highlight or note any comments and reminders as we are inspecting so many properties it can be hard to remember.

Zoning is checked when checking floods and bushfires and also check with council and further due diligence if the client likes the property before submitting an offer.

Building and pest inspection is at your expense but they will book it in at a time that suits their schedule so they can attend and you will be sent the invoice directly. We aren't builders or pest inspectors even though some things stand out we aren't getting in ceiling etc and on roofs and tapping walls with everything else we have to check, we will just note if something stands out or doesn't look right.

Advice on cost to fix issues will generally be when we are at the building and pest inspection and can ask the building inspector or some of us have a general knowledge on basic requirements. Any major issues would have to be quoted by a professional in the required field if you wished to proceed with the property and then re negotiate the purchase price.

Advice on value add will be noted if possible as its a question for the ba to check when conducting their property inspection checklist.

I hope this helps this is what we do and every company may be different for better or worse I couldn't tell you.

 

Hi @No_Limits best to choose a few BAs that appeal to you after you do some online research (and perhaps gather some referrals) and then ask them the above. I'm a Sydney based BA so may be able to assist but where are you looking to use one?
Also consider rebaa members www.rebaa.com.au for experience and professionalism.

 

Responses in italics below

Hope that helps.

- Andrew

 

We used a BA for our PPOR purchase in Brisbane, so I can give you our experience.

- 10% retainer, remainder of 2.2% fee paid at settlement.
- Written agreement not to take on any clients with conflicting breifs.
- No time limit - we had a narrow brief so agreed it could take 3-6+ months instead of usual less than 3 months as would normally occur. (I think it took ~8 months for a property to come along that fitted our brief and our BA was a gem at helping us secure it for a fair price).
- No restriction on number of properties to look at.
- Either party could break out of agreement easily. We'd lose our retainer. Our BA was kind to us by being happy to not have a time limit for our place despite the risk to them if we pulled out.
- They arranged a B&P that we paid for and we all attended (owner, agent, BA, me).
- We did not want a detailed DD report - didn't fit out needs and everyones time was better directed elsewhere.