if you plan to buy or sell real estate properties, you may have to work with real estate professionals to complete the job. Meanwhile, the Sydney property market is already saturated with tens of thousands of licensed professionals that can help property buyers to buy or sell a home or investment property. However, you need to have an idea of which one of them can help you achieve your goals
Generally, there are several professionals in the real estate market. The list includes buyers agency Australia, selling agents, appraisers, home inspectors, real estate attorneys, and more.
Who is a buyer’s agent?
Buyer’s agents are responsible for helping home buyers to the most suitable property at the right price. In addition, they provide professional support for property investors throughout the entire buying process.
During a typical property purchase, a buyer’s agent is the buyer’s advocate before selling agents negotiate the best purchase price according to the current market value. A buyer’s agent is responsible for ensuring a prospective buyer gets the right property. Therefore, a good buyer’s agent must learn how to win in auction bidding if other property buyers are interested in the same property you want.
It is also the responsibility of buyers’ agents to ensure a home buyer buys a property at the lowest sale price possible. A selling agent is expected to represent a vendor’s interest in every purchase process. That’s why every home buyer needs a buyers’ advocate to fight on their behalf.
Property buyers’ agents understand the local market. Home buyers can leverage that to find off-market properties with good prices. A licensed buyer’s agent is legally qualified to buy suitable properties. You need to use a buyer’s agent to find the perfect property in the competitive housing market.
Meanwhile. buyer’s agents don’t render professional service for free. So if you want to achieve excellent results on investment properties, you must be ready to pay the buyer’s agent fee.
Who is a real estate agent?
A real estate agent is a professional with a real estate license to help property sellers list their properties for sale. A real estate agent is legally recognized and licensed to help clients buy and sell real estate. They get their commissions after the property purchase or sales have been concluded.
Real estate agents are licensed to help people buy, sell, and rent real estate. They are ultimately responsible for bringing buyers and sellers together and are paid a commission—usually a percentage of the property’s sale price. Licensed real estate agents are also called real estate associates and salespeople.
The requirements to become a licensed and successful real estate agent vary by state (no federal license). In general, however, real estate agents must:
- Be at least 18 years old
- Be a legal resident of Australia
- Be sponsored by a real estate broker to further your training
- Take and pass the real estate license exam with good grades
- Complete their state’s required pre-licensing class
- Complete a background check
- Complete the continuing classes required to maintain the license and finish with good grades.
Who is a real estate agent?
Real estate agents help sellers organize transactions between property buyers and sellers and between owners and renters. Real estate agents are responsible for carrying offers and counteroffers between each party and any queries or issues they may have concerning the property. A real estate agent works with another licensed agent when a buyer’s offer is accepted, guiding clients through filling out paperwork. They also ensure their clients know any requirements to conclude the transaction, including home inspections and important dates such as the closing. Click here to read about What Your Buyer’s Agent Will Do For You Daily.
Real estate agents who represent property sellers are called listing agents. These real estate agents help set prices, suggest updates that will increase the home’s value, help with home staging, viewing, and market the property via the local Multiple Listing Service and other channels. They also help sellers to negotiate sales prices and other necessary fees and help prepare, submit, and file documents.
Real estate agents who represent home buyers are known as buyers’ agents. These agents find suitable properties that match the buyer’s specifications and price range and help contact home appraisers and inspectors. Like listing agents, buyers’ agents negotiate terms and prepare, submit, and file the needful documents.
How do real estate agents get paid?
Real estate agents work for brokers and are paid on a commission basis. That means they receive a percentage of the total sale price of a property (the higher the sale price, the higher the commission expected).
Commissions are sometimes negotiable but typically fall between 5% and 6% of the purchase price.1 The real estate agent doesn’t walk away with the entire commission. Instead, the commission is typically divvied between the buyer’s agent, listing agents, and the firms for which the agents work. For example, say a home sells for $500,000 with a 6% commission. A split might look like this:
- Listing agent: 1.5% ($7,500)
- Buyer’s agent: 1.5% ($7,500)
- Listing agent’s broker: 1.5% ($7,500)
- Buyer’s agent’s broker: 1.5% ($7,500)
Real Estate Brokers
A broker is a real estate agent who studies in tertiary institutions to receive a real estate broker license. Unlike a real estate agent, a broker can work independently, start a brokerage and hire other real estate agents.
What do real estate brokers do?
Real estate brokers do many things a prospective agent does. For example, brokers who work with home buyers look for suitable properties for the criteria set by their clients, negotiate, prepare offers, and help the home buyers with every other issue leading up to the closing date. On the other hand, seller’s brokers determine the local market values of the properties, list properties, communicate with vendors about offers, and assist in the process.
Conclusion
Both real estate agents and buyer’s agents play essential roles in the purchasing process of a home or investment property. Real estate agents also help home buyers purchase a property, but we advise contacting an experienced buyer’s agent to help with your property purchase. Buyers’ agents are buyers’ advocates. They will do everything in your best interest.
