Buying a home can be stressful, particularly in a competitive market. For buyers who are time-poor, unfamiliar with an area, relocating to WA or buying sight unseen, a buyer’s agent can help make the process easier.
Buyer’s agents act on behalf of the buyer, rather than the seller. They can search for suitable properties, attend inspections, assess properties, liaise with selling agents, negotiate price and contract terms, assist at auctions and help manage the process through to settlement.
And they don’t need to be engaged for the whole buying process. Some buyers may choose to use a buyer’s agent for specific tasks, such as negotiating on a property they have already found.
REIWA President Suzanne Brown has previously written about the importance of local knowledge and licensing when choosing a buyer’s agent in WA. For more information, read:
Check they can operate in WA
In WA, buyer’s agents must be licensed as a real estate agent or registered as a sales representative. This means they must be suitably qualified and meet the requirements to work in the industry.
Before engaging a buyer’s agent, buyers should check they are licensed or registered to operate in WA. This can be done through Consumer Protection.
If the agent is based interstate, buyers can also check whether their licence has been recognised through the Automatic Mutual Recognition Register.
Ask the right questions
Not all buyer’s agents will have the same experience, local knowledge or authority to operate in WA.
Before signing with a buyer’s agent, ask:
- Are they licensed or registered to operate in WA? Or are they a REIWA member (as agents must be licensed to be a REIWA member)?
- How long have they worked in the industry?
- What experience do they have in the suburb or area you want to buy in?
- What buyer’s agent-specific training have they completed?
- How many WA purchases have they successfully negotiated?
- What steps have they taken to understand WA laws, contracts and procedures?
- How strong is their network of selling agents?
- Can they provide references?
Local knowledge is particularly important for interstate investors, people relocating to WA, or buyers who are relying on someone else to inspect properties on their behalf.
WA’s market dynamics, legislation, contracts and processes can differ from other states, so it is important to work with someone who understands how property transactions work here.
Understand what you are signing
Once you choose a buyer’s agent, you will need to sign a written contract.
Before signing, make sure the agreement clearly sets out:
- What services will be provided,
- What parts of the transaction the buyer’s agent will handle,
- The total fee payable,
- When fees are due, and
- How the agreement can be ended if you are not happy with the service.
You are free to negotiate the terms and fees before signing.
Know your protections
If things go wrong, buyers have protections under WA law and the Australian Consumer Law. This means the buyer’s agent’s services must be provided with due care and skill, and within a reasonable time.
There may also be protection through the Fidelity Guarantee Account if a licensed agent or their employee steals or misuses money.
A buyer’s agent can be a helpful support when purchasing property, but it is still important to do your homework.
