Top Questions to ask your Buyers Agent in Real Estate Melbourne

Thinking of buying a property in Melbourne? Excellent choice! But where are you supposed to start? Many homebuyers, especially those who are buying a property in the city for the very first time, often find it difficult to navigate through the process, remain updated with any policy or regulation changes, or keep track of the documentation requirements. 

During such instances, most people seek out a buyer’s agent, also known as a real estate agent, for expert property services. While a buyer’s agent can provide end-to-end services for property buyers, one must know how to ask the right questions to obtain the right help. 

This blog will guide you on the different questions to ask when buying a house in Melbourne, so that when you begin the journey of becoming a property owner, you are equipped with the right knowledge and tools. 

Understanding the Role of a Buyer’s Agent

Before diving into the list of questions to ask a buyer’s agent in Melbourne, let us dissect the role of one and the kind of services a typical real estate agent offers to property seekers in Melbourne. 

What Does a Buyer’s Agent Do?

Simply put, a buyer’s agent facilitates a property purchase for interested properties, ensuring that the deal is completed, keeping the buyer’s interest in mind, while completing the payments and documentation processing as smoothly and quickly as possible. 

The roles and responsibilities of a buyer’s agent differ greatly, depending on their company, experience, and specialisation. Generally, here is what to expect when choosing a buyer’s agent in Melbourne:

• Handling and submitting the required documentation in a timely manner 
• Negotiating property prices and contract terms on behalf of the buyer 
• Understanding and assessing each buyer’s requirements and budget before presenting relevant property options to them 
• Analysing property market trends and offering you the most suitable property comparative analyses 

Key Reasons to Hire a Buyer’s Agent in Melbourne

How are you to benefit if you hire a buyer’s agent in Melbourne? There are many advantages to hiring such specialists when househunting in a dynamic property market, including:

• Obtaining information: Much as the title suggests, there are numerous questions to ask when buying a house in Melbourne. A buyer’s agent can give you correct and helpful insights, which may not be possible with a simple Internet search.
• Credibility: One can only become a verified buyer’s agent in Melbourne after completing a CPP41419 Certificate IV in Real Estate Practice, coupled with obtaining 12 months of practical experience within 3 years of applying for a license. These certifications prove that not only are they legally allowed to practice, but they also bear the required skills a real estate agent must possess. 
• Time management: House-hunting can be a time-consuming and thoroughly stressful process, especially if you are juggling several things at once. With a buyer’s agent, the process is quicker, more efficient, and streamlined, as they manage everything on your behalf. 

Key Questions to Ask Before Hiring a Buyer’s Agent 

Let’s now dive into the deep end: what are the things to ask a real estate agent when buying property in Melbourne? Asking the following questions will not only arm you with more clarity but could also fast-track your property purchase in Melbourne. 

What Experience Do You Have in My Preferred Suburbs?

This is one of the most underrated questions to ask when buying a house in Melbourne. While there is no official record of the number of licensed real estate agencies in Melbourne, it is not difficult to come across them, be it through billboards, social media, cold emails, or word-of-mouth. 

Ask your buyer’s agent how familiar they are with the suburbs you are interested in. How many houses have they sold in the suburbs? Are they aware of the property yields and appreciation potential in an area? Do they have any testimonials to show? 

While buyer’s agents possess in-depth expertise of the Melbourne property market, it is important to know if they have experience in a particular suburb. 

How Do You Charge Your Fees?

There are different payment models for buyer’s agents and their companies. Do not enter into an agreement before asking an agent how they charge their fees. Many buyers do not account for this when choosing a buyer’s agent in Melbourne, which can result in confusion. 

Typically, buyer’s agents in Melbourne charge within the following fee structures:

• Fixed fee: This is one of the most common pricing models wherein an agent will charge an upfront fee, notwithstanding the final property fee and services provided. 
• Tiered pricing: This particular model involves the charging of different fee brackets depending on the final sale value of the property. As the price appreciates, so do an agent’s fees. 
• Percentage commission: This is also a common fee model, wherein a buyer’s agent charges a certain percentage of the total property value. This commission rate can range from 0.9% of the total property value to 3%, which depends on the company, the scope of services, and the kind of property you buy. 
• Hybrid model: This model involves a mix of different fee structures. For example, while a buyer’s agent can charge an upfront fee for their services, they may also take a commission for additional services. 

Can You Provide References from Past Clients?

A pivotal question to ask a buyer’s agent in Melbourne is whether they are able to provide credible references from past clients. This is one of the best litmus tests to understand if the agent can do their job well. 

References can come in the form of online testimonials, social media posts, or a phone number through which you can directly contact past clients. 

What Services Are Included in Your Engagement?

Another thing to ask a real estate agent when buying property in Melbourne is the scope of services they provide. Certain agencies and agents may provide the usual services, while others may offer niche services, such as luxury properties, investor-specific properties, and more. 

Understand whether their services align with your requirements for a property. 

How Do You Find Off-Market Properties?

This is a very smart question to ask when buying a house: whether an agent has access to off-market properties, and how they find them. 

An off-market property is one that is unlisted and sold directly to buyers through a highly private network. Access to such properties means that the agent has a robust and reliable network of private properties. 

How Will You Keep Me Updated During the Process?

Communication is key throughout the property purchase process, especially when a real estate agent is involved. Ask an agent about their communication process, whether they provide daily updates or when there needs to be some action from the buyer. 

Questions to Ask During the Property Search

When evaluating properties before selecting one, here are some questions to ask your buyer’s agent. 

How Do You Evaluate Properties Before We Inspect?

A credible buyer’s agent will never pass up on a property check and evaluation, but how do they conduct it? This is one of the things to ask a real estate agent when buying property. Some key property evaluation criteria to keep in mind include:

• Checking the location and understanding its property yields, surrounding amenities, accessibility, connectivity, and safety. 
• Conducting thorough property and pest checks before finalising a purchase. 
• Doing a comparative analysis of the adjoining properties in a suburb to understand different price ranges.

If a buyer’s agent conducts thorough, multi-layered evaluations, you will be armed with more clarity. 

What Should I Look for During Property Inspections?

Another one of the common questions to ask a buyer’s agent in Melbourne is what things you should look out for during a property inspection. A property inspection can help you determine whether a property has been correctly marketed and if it is in good condition. 

Buyer’s agents will normally give you a few tips and hacks to use when inspecting a property, such as examining recent repairs in a property to see if it has been done properly or cheaply, checking for odd sounds and smells (e.g., sewage smells nearby), and more.

How Do You Help Me Decide Between Multiple Options?

When selecting a property in Melbourne, you may come across several enticing options. An important question to ask when buying a house is how a buyer’s agent will help you decide the right property for you. 

They can assess your budget, lifestyle preferences, and property requirements before presenting an objective and suitable property amongst the wide range of options. 

Questions About Auctions and Negotiation 

Melbourne is famous for property auctions, given the growing population and rising demand for properties. Here are some questions to ask when buying a house, with regard to property auctions and negotiations. 

What’s Your Strategy for Auctions in Melbourne?

Experienced buyer’s agents will have largely fail-safe strategies for property auctions in Melbourne, be it doing thorough due diligence of the particular property, dressing confidently, or bidding strategically. 

Ask them about their strategies to understand if they come well-prepared for auctions.  

How Do You Handle Negotiations for Private Sales?

Private sales for off-market properties can have different steps compared to normal listings. These are often high-stakes negotiations with lesser but more competitive buyers bidding for a particular property. 

Buyer’s agents have different ways to navigate such negotiations, whether it is their experience and network or providing strong justifications for a property. 

How to Prepare Before Your Discovery

After completing your list of questions to ask when buying a house, here is what you can do to ensure a hassle-free, smooth property purchase.

• Make a list of your property requirements and priorities, be it your requirements for the interiors or the property size, or the kind of amenities you want near your house. 
• If you are opting for a property mortgage, ensure that you have all the required financial documentation and information collated to apply for a pre-approval. 
• Ensure that the agent understands your expectations for communication and engagement throughout the process. With mutual expectations and understanding established, the process will be more seamless. 

Conclusion

Your journey doesn’t simply end by choosing a buyer’s agent in Melbourne, but by asking them the right questions to ensure a smooth property purchase process. With InvestorKit, you get a partner that not only helps you find the right property but also supports your financial growth. 

References 

[1] – Bankrate.com – What does a buyer’s agent do?

[2] – BuyersAdvocate.com.au – Are buyer’s agents worth it?

[3] – BuyersAdvocate.com.au – How much does a buyer’s agent cost?