When first deciding to buy a property whether it be your first or fifteenth, one to live in or rent out, most buyers look to the internet for inspiration, information and insight. The sheer volume of property information available on line is staggering; the days of having to pour over the classifieds and spend countless hours dashing through home opens are behind us.
Lessened too are the days of buyers asking an agent to seek out suitable property for them. Before property industry de-regulation and the re-writing of REIWA’s Rules of Practise, it was common for an agent to introduce a buyer to another agent’s listing under a conjunctional arrangement and receive a handsome slice of the listing agent’s fee. A 60/40 split was almost always a given.
The demise of the multi-listing service (a system whereby all properties on the market have a lock-box secured on the property and participating agents could simply access the property at anytime) has contributed to the reduction of conjunctional arrangements too.
The well supplied market of 2009 to 2019 where buyers were scarce and transaction levels low, saw the conjunctional come back into popularity but with a well priced listing still an agent’s priority, running about with a buyer on the chance of securing a sale for a small portion of the listing agent’s fee no longer seemed worth it.
The market boom since 2020 has brought with it limited market supply and high demand thereby limiting the need for a listing agent to give up a portion of their fee to a sub-agent; they are simply able to deal with the buyers themselves. The current sellers’ market conditions mean buyers must choose to either deal directly with the selling agent or employ someone to represent them – a buyer agent.
Seizing on a growing gap in the market, a buyer’s agent acts for and is paid by the purchaser. Time poor investor types find this service particularly worthwhile as do a growing number of people simply trying to find a family home in a supply-starved market. A good buyer agent will undertake substantial research before choosing a property to buy for their client, assessing yields, rents, affordability, suburb infrastructure, growth history, etc. And because the buyer agent is acting for their purchaser, they negotiate with the listing agent in a manner that sets out to buy the property for the lowest possible price on favourable buyer terms.
Neatly, the buyer’s agent is not seeking to claim a portion of the selling fee. The vendor’s agent need not find or deal with the buyer either; all negotiations are done through the buyer’s agent. Buyer agents are growing in number; most provide an excellent service to their clients and make the listing agent’s job easier.
The principle behind a contract is straightforward. Two parties, having clear objectives negotiate an outcome that is reasonably suited to both parties and with consensus on terms and conditions, a verbal or written agreement is formed. Both parties know those terms and are generally satisfied that there is a fair … Read more
Here we go again. Treasurer Jim Chalmers trotted out the same line politicians always do when quizzed by journalists on something the don’t want to answer saying, ‘it’s perfectly normal for Treasury to model all manner of things in preparation of a budget.’ The Treasurer was responding to questions about … Read more