Investing through a buyer's agent



From: Patrick Pierre


As I'm fairly new to the investment game, I'm thinking of going though a buyer's agent to get me started. Have any of you done this before?

If so, could you have done better if you looked for a property on your own with the limited experience that you had?


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Reply: 1
From: Jacque Parker

Patrick, I have never used a buyer's agent and I'll tell you why:

I think they are better suited for owner-occupiers who are fussier and probably willing to pay that little bit extra for their dream home.

Their fees are high, which eat considerably into your profit margins.

Nothing, and I mean nothing, beats your own legwork. Not only do you develop a feel for the area, but you get to talk firsthand to agents, owners, current tenants etc and you can learn a lot. Eg: streets that are highly sought after or rejected, preferred shopping centres etc. By walking/driving around, you can actually see what the area has to offer, perhaps even notice things happening that others wouldn't (new developments, shopping centre extensions, roadworks etc).

I have nothing against buyers agents but, for the investor, I believe that experience pays off. Good luck! Cheers, Jacque :)
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Reply: 2
From: Peter Troiano

buyers agents can be very beneficial in the purchasing process. A lot of my clients in the eastern suburbs and harbour areas of sydney have successfully used them.
Finding a good one is where the work is. Referral is the best way and call the people on their list and I had one couple even quiz the Real Estate agents and the LTO records to see if they were making up clients. Anything goes.....
At an Auction I seen one buyers agent in full flight and they can be good.
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Reply: 2.1
From: Robert Forward

I'll repeat a concern I posted about Buyer Agents from months ago.

Do Buyers Agents get there commission from the sale of the property. From some Buyers Agents that I've spoken with have said that they get a 50/50 cut on the sellers RE Agents commission. Which is normal RE Agents standard practice.

If this is the case, then "your" buyers agent will want you to pay top dollar for the property. So they get the best commission for themselves (they do have to live somehow). For them to try and negotiate the price down is akin to shooting themselves in the foot. Cause the harder they work in getting you a better price the less they will get paid in commission.

If I am incorrect and Buyers Agents now get there "commission" in some other form can someone please enlighten me.


The Sydney "Freestylers" Group Leader.
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Reply: 2.1.1
From: Patrick Pierre

Hi Robert,

The way that this agent works is that you pay him an up front fee and then you pay him at settlement 1.61% of purchase price or $4800 (which ever is higher).
What I would like to know is what guaranty have I got that I'm getting the "right" property from this agent?
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