Beware of the ‘Free’ Buyer’s Agent!
If you want to buy a property, then beware of the “free” buyers agent.Buyer’s Agents are professional, registered Real Estate Agents that work for and in the best interest of property buyers.They listen to their clients’ unique needs, source properties that fit the brief and will be sound investments with the best possible capital growth potential, then negotiate and bid on the chosen property.A real Buyer’s Agent does not work for or with the vendor and will not work for ‘free’.
Unfortunately, a new trend is emerging in the real estate field and it’s not good. We are beginning to see ‘Buyer’s Agents’ advertise their services as ‘free’ and that the ‘seller pays the fee’. To genuine Buyer’s Agents these are red flags and these ‘free’ services are not only giving the industry as a whole a bad name, they are misleading consumers. According to the Real Estate Buyers Agents Association of Australia, “true Buyer’s Agents have a fiduciary duty by law to act in the best interests of their clients and this is legislated in each individual state’s real estate law.” The ones selling their services as “free” are not acting in accordance with the law.
What is really happening?
A minority of agents are using slick advertising to promote deals that are too good to be true.
These agents are misleading the consumers and manipulating public perception.
They are creating a conflict of interest as they are acting in the best interest not of the buyer, but of the party that is paying the fee.
They are usually selling agents in disguise, paid to sell certain properties and are compensated by the developers of these properties.
The buyer is deceived as the properties chosen for purchase may not be the right properties for them.
What is being done about it?
Associations such as REBAA (Real Estate Buyers Agent Association of Australia) and various state bodies like REIV (Real Estate Institute of Victoria) are continually looking to raise standards within this industry, and working hard to appropriately protect the best interests of consumers.
How do you protect yourself?
Ensure you do your research when selecting a Buyer’s Agent to work with. You should ensure your Buyer’s Agent is accredited through REBAA and therefore has professional indemnity insurance. Accreditation logos should be present on agents’ websites for all potential consumers to see.
They should be a Licensed Estate Agency and Agent and you can check this for your self on the Estate Agents public register in your state or territory. In Victoria, this can be searched at https://www.consumer.vic.gov.au/businesses/licensed-businesses/estate-agents/public-register
Always ask questions about licenses, experience, accreditation, trading history, case studies and testimonials. Its not only methods of searching and securing properties that is important. Its about the credibility of the person and company you are entrusting to give you advice and service.
It’s also great to read testimonials and what past clients have had to say. You can read about Buyer Solutions reputation, results and rewards here and read what our past clients have to say about us here.
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