Are Buyers Agents Worth It? Fees, Pros & Cons

[@OilBaron100]

I signed up with a well-known buyers agent who gets properties for investors from all around the country. The properties presented mostly had stuff wrong with them and needed money spent to repair bad building work or tenant damage or to clean up after being abandoned by tenants. Went through the process to buy a property and used my own building inspector (and not the building inspector that the buyers agent wanted me to use) and I pulled out of the purchase once I found out I would have to spend $10-15K on the place and that the rental yield would be much less than what the BA promised. Always carefully read a BA’s contract and be aware if they don’t have to issue a refund.

[@williamcrossan9333]

It's a tricky one Luke. Fees can be 16 to 18K. That's a lot when we add stamp duty, and likely selling costs if you are moving. A buyers agent WILL need to have a good relationship with real estate agents. Which in itself, would be of concern. Is there a conflict of interest? Veronica Morgan (the Elephant in the Room podcast) has suggested that buyers agents in some areas, are actually pushing up prices! Which is the opposite of what they are supposed to do. Because a few BA's will target an area, because they consider it a hot-spot. And suddenly it is a hot-spot, due to the competition! But 3 to 5 years later, it returns to fundamentals.

[@paulinezheng2224]

The buyers agents charge the fees are different, some are charged lower, some are charged higher

[@nmeau]

Warning - read the fine print. Some buyers agent contracts give them rights to collect commission on any property that you purchase, even if the property is on the other side continent and they had nothing to do with it.

[@lukewiles1]

that's a very common clause... as the buyers agent will provide knowledge & insight into the market and wouldn't want a client to use this information, then try and get out of paying fees

[@rubenchavez1747]

Thanks!

[@williamcrossan9333]

Your fee does sound quite reasonable for cheaper properties.

[@andrewcheshire244]

Basically, it's a game for the already rich. If you're poor and can't afford property, forget becoming a buyers agent. You don't qualify.

[@JulieGraham-f2b]

I think it's rather disheartening when you broadcast that it's better to work with someone with a lot of experience. There are many new agents with a lot of knowledge but have not had the time to build that client base. I'm quite sure you were just like this at one time. I'm happy for you that you have had the experience and are doing very well with your career. Don't take it away from those who want to achieve what you have by telling the audience to work only with experienced folks. Just saying.