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 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:
| Activity | Buyer’s agent | DIY |
| Create your personalised investment strategy | Buyer’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 area | 30 hours | |
| Create a shortlist and inspect 5–10 properties | 10 hours | |
| Arrange finance/pre-approval with your broker or lender | 5 hours | 5 hours |
| Settle on a property, crunch the numbers and make an offer | Buyer’s agent handles this as part of their service | 3–5 hours |
| Negotiate on price, conditions, terms and inclusions | Buyer’s agent uses their skills, expertise and objectivity to achieve an 8% discount on purchase price | You 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 |
| SUMMARY | 10–15 hours$497,500 total outlay | 55 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
