While you are probably familiar with real estate agents who represent a seller in a real estate transaction, you may not be so familiar with real estate agents who represent a buyer.
In a market where there can be intense competition for properties some home buyers are using their own agent.
A buyer’s agent can be helpful if you are unfamiliar with the market or want an experienced third-party to help you negotiate the sale price. You don’t have to use them for the whole process of finding and buying a property, you can also choose to engage one for only some of the steps.
For a fee, a buyer’s agent can find and assess suitable properties, attend inspections, liaise with agents, negotiate price and contract terms, explain contract conditions, arrange inspections, assist at auctions, and oversee settlement through to the final inspection.
There are a few questions you can ask to help you pick the right person for your needs. Firstly, and most importantly, check they’re licensed. In WA they must be licensed as a real estate agent or registered sales representative, which means a buyer’s agent must be a fit and proper person and suitably qualified to understand the rules around real estate transactions.
It’s also important to ask how long they’ve been in the industry and the experience they have in the suburb you wish to buy, what additional training they’ve done specific to being a buyer’s agent, and how large their network of selling agents is.
Be careful when engaging interstate buyer’s agents, as they may lack a strong understanding of WA’s property market and processes. Before committing, ask about their experience purchasing property in WA, how many they’ve successfully negotiated locally, and what steps they’ve taken to understand WA-specific laws, contracts and procedures. It’s also important to verify whether they are legally permitted to operate here by checking the AMR register.
Once you have selected a buyer’s agent you like, you will need to sign a written contract. You’re free to negotiate the terms and fees before you sign but make sure it covers which aspects of the property transaction you want them to do and the total fee payable must be clearly shown. How you can end the agreement if you are not happy with their services should also be included.
If things go wrong, the good news is you’re protected by the WA law governing real estate agents as well as the Australian Consumer Law (ACL). This means the buyer’s agent’s services must be provided with due care and skill, and within a reasonable time. If the service fails to meet the ACL, you may have the right to a refund, compensation or to cancel the contract.
You’re also given extra protection through the Fidelity Guarantee Account if the licensed agent or their employee steals or misuses your money. This is why it’s critical to check the buyer’s agent is licensed correctly in WA.
Consumer Protection’s website has further information about buying a home in WA, including the Home Buyers Survival Guide. If you have queries or concerns about the conduct of an agent or sales representative, please contact Consumer Protection’s Contact Centre on 1300 30 40 54.
Print this page
