How much does a buyers’ agent really cost?

At Innovative Property Advocates, we believe engaging a buyer’s agent shouldn’t be a service reserved only for the wealthy. However, it is not always that easy to demonstrate to potential clients the true benefits of using our service versus going it alone.

So imagine our delight this week to see Your Investment Property magazine outlining how engaging a buyer’s agent can save time AND money.

The article states that using a buyer’s agent allows you to leverage someone else’s experience to your advantage, and may often save you from making a costly mistake.”

They even demonstrated how a property purchase scenario could play out, with and without a buyer’s agent. The timing and numbers below are based on a $500k property so you can see for yourself how our service is for anyone who wants to save time, money and have a professional acting in their best interest. And you don’t need to purchase a multi million dollar property.

Let’s take a closer look:

 ActivityBuyer’s agentDIY
Create your personalised investment strategyBuyer’s agent handles this as part of their service, in consultation with you(5–10 hours)You create based on your own research (3–5 hours)
Research the market in your desired area30 hours
Create a shortlist and inspect 5–10 properties10 hours
Arrange finance/pre-approval with your broker or lender5 hours5 hours
Settle on a property, crunch the numbers and make an offerBuyer’s agent handles this as part of their service3–5 hours
Negotiate on price, conditions, terms and inclusionsBuyer’s agent uses their skills, expertise and objectivity to achieve an 8% discount on purchase priceYou negotiate and achieve a 4% discount on the purchase price
Property is listed for $500,000, but you pay…$460,000$480,000
Buying costs, including stamp duty, lenders mortgage insurance, building inspections, legals, etc$30,000$30,000
Buyer’s agent fee of 1.5%$7,500$0
TOTAL OUTLAY$497,500$510,000
SUMMARY10–15 hours$497,500 total outlay55 hours$510,000 total outlay

*Source: Your Investment Property Magazine

Every client is different and every situation is different. What this table demonstrates however is how a buyers agent can save you thousands in the long run and get you into your own home, or making an income from your investment property sooner and with relative ease.

If you would like to find out more or speak to one of our professional buyers agents, call now on 0411 522 233 or email info@innovativeproperty.com.au

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