Buyers agents are an essential part of the selling process. They help clients find homes that fit their needs and ensure the purchase goes smoothly. In Sydney, buyers agents typically receive an hourly rate for their services and a commission on their purchase price. However, compensation can vary depending on the size and complexity of the transaction.
In 2017, the average buyers agents in Sydney earned $41.29 per hour working on residential real estate transactions. For example, a real estate agent who works 40 hours per week and represents one client during the time will make an average of $1420.40 per month or $26,747.40 per year. Buyers agents in Sydney can expect to earn even more if they work multiple hours or represent numerous buyers and sellers. In 2017, the average buyer’s agents made $43-$51,000 in salary and commissions. Overall, buyers agents in Sydney typically earn about $60k+ per year for full-time work.
What type of buyer’s agent is preferable?
There are three types of agents: retained, independent, and affiliated.
Retained agents work for their clients full-time and typically charge a percentage of the sale, while independent agents work for themselves and typically charge an hourly rate.
Affiliated agents are companies that work with both retained and independent buyers’ agents.
Factors to keep in mind
1) The amount of money a buyer’s agent charges- Independent buyers’ agents usually charge an hourly fee or are paid a percentage of the sale price. Retained agents typically charge a portion of the purchase price.
2) The expertise needed for a particular transaction- For example, if selling a home that requires repairs before it can be resold, the seller may want to work with a buyer’s agent who specialises in buying distressed properties or is experienced in negotiating with contractors.
3) The type of service expected from a buyer’s agent- Do negotiate the best price possible or take the guidance of someone who can answer all questions about the process and guide through it.
4) The agency’s reputation and its areas of expertise- Should ask for references and visit their offices before hiring them. Find out how long they have been in business and what neighbourhoods they specialise in.
5) The agency’s resources- office space, administrative assistants, researchers, etc. may need these things if needs are exceptionally specialised or complicated.’
What items should be negotiated in the agreement with the buyers’ agent?
The general rule is to compensate buyers’ agents for every job they do. This includes:
-Time spent
-Research done
-Clients represented
-Any other services rendered.
There are a few functional things to keep in mind when negotiating compensation with the buyers agent:
– should agree on a formula before starting the negotiation. This formulation will ensure that both parties are comfortable with the amount being paid and avoid any potential misunderstandings.
-Be reasonable. If asking for too much, the buyer’s agent may feel pushed into refusing requests. Conversely, if offering less than what is necessary, buyers agent may feel as though they are not being compensated fairly. It is essential to strike a functional balance that works for both parties involved.
-Be sure to keep track of all expenses incurred while working with the buyers agent. This will ensure that the involved parties are aware of any additional costs incurred and make a fair agreement on compensation accordingly.
Conclusion
To compensate for all their work, here are a few tips.
- Include a detailed description of what will be expected.
- Always keep records of all contacts and dealings with buyers. This includes notes about showings, offers, negotiations, and contract signings.
- Finally, pay for all the time spent working on the sale. Set up a schedule of fees based on the hours spent working on each property.
