What is an Exclusive Buyer Broker (EBB) or Buyer Advocate?
An Exclusive Buyer Broker (EBB) also know in Australia and New Zealand as a buyer advocates or agents are fully licenced and experienced real estate professionals, hired by a prospective property-buyer to source, research and negotiate the purchase of a property on behalf of the buyer. A buyer’s agent represents the interests of the buyer in a real estate transaction, as opposed to a seller’s agent.
They exist to deliver consistent high performance, simplicity and demonstrable financial savings to any person looking to purchase real estate asset.
In most cases the networks, strategy, process and access to reliable data and capabilities they have developed, sets them apart from the crowd by allowing them to help clients to save up to 15% of the purchase cost.
Their services are carefully crafted and delivered to make the buying process simple, fun and rewarding for the buyer through transparency, consultation and regular reporting.
A Buyer agent provides services based on the specific needs of the buyer (Client) and are paid exclusively by the buyer therefore agents has a fiduciary duty to represent the interests of the Buyer. Fees charged include an engagement fee, plus a purchase fee which ranges from 1-2% and this fee can either fixed or percentage based on the purchase price.
Exclusive Buyer Brokers or buyer agents do not:
- Take or hold property listings and engage in sales advisory services
- Represent the seller or landlords
“They do not sell real estate nor advertise or market properties in any shape or form”
Exclusive Buyer Brokers or buyers’ agents provides a diverse range of services which include:
- Buyer Advocacy (sourcing, conduct property inspections, conduct or arrange valuations, conducting due diligence and negotiations).
- Auction Bidding
- Property or Asset Management (when required)
Buyer Advocacy
The full service sees the agent searching out properties meeting their client’s criteria and negotiate the purchase of the property ultimately chosen, whether by private sale or auction. When conducting searches, a buyer agent can present properties which are on market, before market and off market. Their skills and knowledge on the markets they operate within allows them to evaluate property values and predict selling ranges. Buyer agent is given the full mandate to negotiate with the Vendors Real Estate Agents or Vendors directly to purchase property at the best price and with the most favourable terms and conditions.
Auction Bidding
The agent may look for specific property requirement, or an entire portfolio, depending on the need, goal of strategy of the client. Property Buyers may engage buyer’s agent purely to bid for them at the auction for a property they found themselves.
Letting or Property/Asset Management
In Australia and New Zealand property buyers may also engage buyer agent to assist them with letting process of the purchased property. This is quite common when a buyer agent assists the buyer to purchase investment properties.
Why use a Buyer’s Agent?
The benefits of utilising a Buyer Agents services in the Australian and New Zealand property market vary for an Owner Occupier to an Investor. Investors are expecting to maximise their returns by ensuring they are buying the very best property possible and the best possible price which meets their personal and individual brief, needs and goals. An owner occupier is typically looking to also ensure they are buying the best property for their brief, in addition to saving time inspecting unsuitable properties and then save money during the negotiation or auction bidding.
1. Early and wide access of properties in the market
Some buyer’s agents have access to a wider range of properties that you may ordinarily be exposed to (some may not even be advertised). They will utilise their network to connect you with focused opportunities, often ahead of others in the market.
2. Time-saving
Having a professional seek out a property that meets your needs can save you countless hours, shortlisting’s efforts and stress. Your weekend is freed up to attend inspections and focus only on the properties with a great chance of ticking your boxes.
Though there’s an increasing array of learning tools and market data publicly available to help you to make an informed choice when buying or investing in properties, it still takes valuable time; countless travelling, phone calls, inspections and dealing with vendors, if you can outsource that work to someone working in your interest, why not?
3. Investing Know-how
Buyer’s agents who specialise in investment properties can help you source the right type of property in locations with good prospects for capital growth. They understand market indicators and won’t just work from your requirements but will consider how to optimise your shortlist based on their experience. This can save you time, money and stress in the long run-lessening your chances of making an ill-informed investment decision.
4. Bidding and negotiating
One of the most popular reasons people use a buyer’s advocate in Australia is to support them during the auction and negation process. Bidding at auction can be intimidating, emotionally daunting business and it helps to have someone objective to represent your needs in the heat of the moment.
Buyer’s advocates implicitly understand the process, including the tricks of the trade, and bring to auctions the confidence, emotional detachment and tactics necessary for a successful bid.
Investors should note that the cost of using a buyer’s advocate is generally tax-deductible when purchasing an in-investment property in the Australia jurisdiction.
