Demystifying the Roles of Professionals in the Real Estate Industry

Do you happen to be a first home buyer who has just joined the property hunt and found that you are utterly bamboozled by the variety of available professional services that exist to ensure that your property purchasing experience is a smooth and painless one?  

As with any new experience, specifically the experience of buying your first home, it is likely that you will encounter a great many professionals whose work you wouldn’t have had the opportunity to be exposed to until now.  You have your Buyer’s Agent, Mortgage Broker, Conveyancer, and your Property Valuer.  The aim of this article is to give you a basic idea of the roles of the aforementioned professionals to prepare you for when you’d have to deal with them yourself.    

 A Buyer’s Agent is a qualified real estate professional who works exclusively for the buyer.  They can advise you on the best streets, the most sought after types of properties and properties that have better potential for capital growth.  If you decide to use the services of a Buyer’s Agent, their main role would involve sorting through hundreds of properties for you and giving you a short list of the properties most suitable to your needs, saving you from the hassle of having to go through all that trouble yourself.  They use their real estate contacts to acquire information about properties before they are advertised to everyone in the market.  The advantage here is that you will have access to properties before a flock of other buyers come into the picture to have a look.  Also, a Buyer’s Agent does all the research and due diligence for you, liaising with property valuers, building and pest consultants, engineers, surveyors, architects and other consultants as required to ensure your property of interest represents value in every respect. 

 However, their services are not free and you have to engage them on a prescribed document consistent with your State or Territory Legislation and pay them commission or a flat service fee – whether you buy through them or not, or as a commission based on an agreed percentage of the purchase price. In Queensland, the State Government has legislated a maximum fee a buyer’s agent can charge.

Of course, real estate salespeople and agents offer almost the same services as a buyer’s agents without charging buyers a fee, but they act for the seller and are paid by the seller to obtain the highest and best offer in the marketplace.

The role of a Property Valuer involves determining the value of property based upon market conditions at a given time.  They will help you decide whether or not the asking price for the property you are interested in is fair and their evaluations will help you negotiate for a better price. The cost of a Property Valuer varies but may range from $600 to $3,000 depending on the size, location and style of the property.

 

If you are planning to purchase your home with a mortgage, a bank or home lender will probably want to engage a valuer to value the property which you will pay for but you will not see the valuation report.

A mortgage broker’s role involves searching, comparing and offering you a choice between the various mortgage products that meet your requirements.  They will save you from wading through financial jargon and work to specifically match the offers of lending institutions to your needs.

You would be wise to engage the services of a building inspector or surveyor before purchasing a property and have a pest report completed. Each of theses services can costs up to $3,000 depending on the location, age, size and style of the property.

Then finally you have your conveyancer or solicitor.  Conveyancing involves the legal work that ensures that the promises in a contract between seller and buyer are carried out.  The role of your conveyancer involves (but is not limited to) ensuring the completion and lodgement of documents to transfer the details of ownership, making necessary enquiries (about things such as title and rates), double checking that all inspections and other special conditions in the contract have been completed prior to settlement, ensuring that you are satisfied that the conditions in the contract have been met, requesting funds to proceed to settlement, and finally, attending the settlement on your behalf. 

 For most, purchasing your first home or investment property is a colossal financial investment and it’s something you wouldn’t want to get wrong.  Using the services of these real estate professionals is sound advice as they will guide you in your journey towards locating, financing and purchasing your perfect first home or investment property.

Posted by Reality Bytes - Real Estate Training Blog on 18/01/2010 at 9:30 AM | Categories:

Comments

Write your comment





Leave this field empty: