Is it cheaper to buy your property without a Buyer Agent?
Updated: Jul 2
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 Victoria between 7 to 12 months to find a property 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 a similar property when you find one. WOW!
Now let’s put the sums together. Considering the median Melbourne house price of $833,000 (2019), 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 searching, researching, attending to disappointing property inspections, the angst, the anxiety, the disappointment, blah blah blah, of missing out on properties through no fault of your own.
How can you reduce this? You need to know the area well. You need to understand the demographics and have a good understanding of the property, the agent, the house, and what other buyers are willing to pay. Engaging a Buyer's Agent is another option. On average, it takes our buyer's agents between 1 to 3 months to find a property for our clients...
So, conservatively, our Buyer's Agent service 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% of the property price, 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?
You are investing 2% in a buyer's agent service to save 16%.
As Buyer's Agents, we've access to smart property research tools and listings from a variety of sources in our network, 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 hundreds of thousands in property research data, combine industry insider news, with insider knowledge and we run our own analytics to determine where the market cycle is and what areas are anticipated to grow. Data never lie. Combining data with our expertise and insights in the property market gives us the unique ability to forecast growth with confidence.
But our buyer's advocacy service is NOT for everyone. We keep it exclusive to service our clients better. If you are keen to find out how if our property buying service is right for you, have a no obligation chat with us. Mention this blog and we’re pleased to offer a special deal just for you.