But Rich Harvey, president of the Real Estate Buyers Agents Association of Australia (REBAA), said that this could have been avoided had homebuyers employed the services of buyer’s agents.
“What a lot of people don’t realise is that an investment in a professional who’s been buying property for 10 or 20 years, who has the contacts and knows how to negotiate, is actually making you money and saving you money all at the same time,” said Harvey.
“It comes down to a level of risk and the average Australian first home buyer is not able to take that level of risk without professional advice.”
Currently, there is no industry standard as to the fees for buyer’s agents. Some would charge buyers a fixed rate for their services, while others opt to follow the standard selling agent’s charge of 2-2.5% commission plus GST on the purchase price.
The rates also depend on which suburb you choose, the price, and what kinds of services the buyer wants to pay for.
“Maybe you’ve done all the research and you simply want an independent third party to validate your opinion, or you would like a buyer’s agent to bid on your behalf at auction,” said Harvey.
“At the end of the day, you need to find the right buyer’s agent that’s giving you the right level of service.”