From broker to agent: creating a seamless buyer experience. – Realty.com.au Blog
Buying property in Australia can be a challenging process, particularly in the current market influenced by factors such as persistent demand outpacing supply, steady growth in national home prices, and average loan sizes reaching unprecedented levels. To navigate this intricate landscape, many buyers are increasingly turning to professionals like mortgage brokers and buyers agents. While they serve distinct functions, leveraging the expertise of both can significantly contribute to creating a seamless buyer experience.
A mortgage broker primarily serves as an intermediary between borrowers and lenders, assisting with the home loan process. They offer advice, source loan options, and handle paperwork to make the application process easier. Brokers are typically compensated through commissions paid by lenders, although some may charge fees directly to clients in complex situations. Importantly, regulations require brokers to act in the best interests of their clients, recommending suitable mortgage products regardless of the commission earned. Understanding how brokers are compensated promotes transparency and trust. Mortgage brokers can also provide valuable assistance in navigating government schemes and grants available for first home buyers, such as the First Home Buyer Grants, Stamp Duty Waivers, and Shared Equity Schemes.
In contrast, a buyers agent is retained to exclusively represent the buyer, aiming to secure the right property for their needs. This role differs fundamentally from that of a selling agent, whose job is to achieve the best price for their vendor. Buyers agents offer a range of services, including gaining access to off-market properties through their networks, providing local market expertise, conducting thorough due diligence, offering an objective perspective, and leveraging negotiation skills. The demand for buyers agents has surged, driven by the competitive market and limited housing supply, as they can provide clients with a crucial edge. Engaging a buyers agent can save buyers significant time and reduce stress by handling the search, investigation, and administrative tasks. This is particularly beneficial for first-time buyers who are new to the process.
Combining the expertise of a mortgage broker and a buyers agent addresses the two major components of buying property: finance and property acquisition. The broker ensures the buyer is financially prepared, understands their borrowing capacity in the context of record loan sizes, and navigates the lending landscape and available schemes. Simultaneously, the buyers agent identifies suitable properties, performs necessary checks, and manages negotiations or bidding in a competitive market. This coordinated approach can lead to a more guided, informed, and efficient process.
While using both professionals involves costs, typically fees for the buyers agent, the potential savings through expert negotiation and avoiding costly mistakes can outweigh these expenses. To ensure a positive experience, it is crucial to select licensed professionals with strong track records and adherence to ethical practices, ideally those affiliated with industry associations like REBAA. By integrating expert financial guidance with professional property search and negotiation, buyers can achieve a smoother and more confident path to securing a property in the current Australian market.
