Why a "Buyers Agency?"

The real estate agent selling a property is appointed by the Owner/Seller and is actually working for the Seller! They have a duty to attain the best price for the Seller and at all times to act in their best interests. In return the Seller pays them a commission or success fee once the property is sold.

Whilst the selling agent is obliged to refrain from being unfair to the Buyer, their duty is to look after the interests of the Seller. Ethically, they have to refrain from advising the Buyer against the best interest of the Seller. So the Buyer has to fend for themselves.

This situation applies even if the agent showing you around is not the listing agent. As long as they are being paid by the Seller [as sub-agent of the listing agent], they have to work in the Sellers best interests.


How to overcome this situation

An astute Buyer should appoint a well informed and experienced agent to act on their behalf. It is similar to an attorney who represents one party and not for both parties.

The Buyers agent will represent and advise them in every aspect of the negotiation and purchase even if it is to the detriment of the Seller. In return, when the sale is finalised their agent will look to the Buyer for a success fee which should be negotiated when the authority is signed.


What kind of fee can I expect to pay?

A success fee is usually a percentage of the purchase price. However, a fixed fee can be negotiated regardless of the purchase price.

Another method of payment is an hourly rate, for the time spent with the Buyer for negotiation and general research and advice. This is payable regardless of whether a purchase is made and is called a Consultancy Fee. The value of the consultancy fee can vary according to the seniority and experience of the consultant.

The fee must be negotiated prior to appointment and will be recorded on the Authority to Act.