Choosing a buyer’s agent? Five questions you should be asking: REBAA
Buyer’s agents are becoming increasingly popular, but like every other professional – they weren't all created equal.
If you’re currently considering a buyer’s agent, you can read Property Observer’s comprehensive introduction to the factors you should consider before paying someone to act on your behalf.
You might also want to read this Q&A with a number of buyer’s agents about their tactics and techniques in finding and purchasing the best investment properties.
However, there are some simple things you can ask a buyer’s agent to quickly get a shortlist of those to consider.
The Real Estate Buyers Agents Association (REBAA) president Jacque Parker says that as well as the questions you should ask below, you also want to know if they’re accepting a fee from any other party or parties besides yourself in the transaction.
“Some agents calling themselves ‘buyers’ agents’ have actually been taking a fee from a selling agent’s commission, yet claiming to work for the buyer,” warns Parker.
“This is a clear conflict of interest because effectively they are representing the vendor, they’re not acting solely on behalf of the purchaser.”
She also notes that it’s worth asking for accreditation to associations and peak bodies, such as REBAA.
Here are their five questions to ask:
- How experienced is the buyer’s agent?
Many have set up without prior, or field, experience.
Make sure they have local experience in the areas you’re considering. - Do they operate as an exclusive buyer’s agent?
Ensure that they are being truly exclusive and don’t receive kickbacks or commissions.
If they do, they may not be impartial. - Are they a licensed buyer’s agent?
Agencies can be licensed in one state, but not others, and still advertise as able to purchase interstate.
Ensure they hold qualifications for each territory or state you’ll be buying property in – the rules differ and they need to be licensed for each.
Check with your local Office of Fair Trading for licensing requirements. - What and where are their most recent purchases?
View their recent purchases to get an understanding of their specialty.
Not everyone is able to assist you with your preferred suburbs or areas. - Can they provide recent client testimonials/references?
Ask to speak to previous clients.
Source: REBAA
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