Is it cheaper to buy your property without a Buyer Agent?
Have you ever wondered how much does it cost to engage the service of a buyer's agent? Or what can a buyer's agent save you?
What about asking how much does it cost to buy the property yourself? No, I’m not referring to costs such as your conveyancing, pest/building inspections.
Very often, the reply we get is “NOTHING. ZERO. ZILCH.”
Let us look at the facts.
A research conducted by UBank suggests that it can take a person in VIC 7-12 months on their property search. That is up to 12 months of lost rentals or, if you are renting, additional rental payments and, given that property prices grow around 6.8% annually [Corelogic] on average, you would have missed that 6.8% capital growth, AND you would have to pay 6.8% more for your property when you find one. WOW!
Now let’s put the sums together. Considering the median Melbourne house price of $833,000, and a median rental of $420 per week. That’s $21,000 in missed rentals, $56,000 in missed capital growth, and you’ll be expecting to pay $56,000 more for the property.
That’s a total of $133,000 (or more)! Or about 16% of median house price.
And that does not take into account the hours and months of time spent researching, and searching, doing property inspections, the angst, the anxiety, the disappointment, blah blah blah...
How can you reduce this? Engaging a Buyer's Agent is one option. On average, it takes a buyer's agent between 1 to 3 months to find a property for the buyer. The simpler the requirement, the quicker it is.
So, conservatively, a Buyer's Agent is likely to half your property search time. You buy your property sooner, you save on rent, and you enjoy the capital growth and you get your rental income earlier. That is a savings of between $33,000 to over $100,000. Now, considering that a typical buyer's agent fee of 2-3%, does that make engaging a professional Buyer’s Agent, a cost effective, and smarter idea in your property search journey? Does using a buyer agent save you money?
As Buyer's Agents, we've access to smart property research tools and listings from a variety of sources, including off-market properties, new and upcoming properties, and properties which aren't even on the market yet. At Concierge Buyer's Advocates, we invest hundred of thousands in property research data, combine industry insider new, with insider knowledge and we our own analytics to determine where the market cycle is and what areas are anticipated to grow. Data never lie. This gives us the unique ability to forecast growth with confidence.
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