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The real estate industry in NZ is very well served from a vendor’s (or seller’s) perspective. In most real estate transactions, a seller will list their property with a licensed salesperson or agent. This agent then has a fiduciary duty (a legal obligation) to act in the best interest of that vendor. They will work to get the best deal and the highest possible price for that property and will take a commission (usually a percentage) from the sale price. During the sales process the agent will naturally seek and assist buyers as, without a buyer, there is no sale! However, what you need to remember is that the buyer’s interests are not their top priority.
So, what happens if you’re looking to buy? Of course, you’ll want to get the best deal for yourself! This obviously does not include paying the highest possible price for a property so you’ll want an expert who has your best interests in the forefront, not those of the seller. This is where the Buyer’s Agent comes in.
A buyer’s agent is a real estate salesperson who represents only the buyer of a property in a real estate transaction. This type of salesperson agrees to exclusively represent the best interest of the buyer, usually under a formal contract. The buyer’s agent is paid commission by the purchaser.
Considerations for a buyer’s agent working under this type of agreement include; negotiating the best sale price for the property, researching the surrounding neighborhood and schools, ensuring the property is inspected, and performing necessary due diligence.
The buyer’s agent will work closely with the buyer to ascertain exactly what they are looking for and will then source numerous properties that fit that criteria.
As Alistair Helm of Properazzi explains, ‘Surely the more advice and support both buyers and sellers get, the more that they are provided with professional services to ease what is an incredibly complex and intense process and ensure that this major financial transaction is undertaken with full knowledge.’
This is common place in America where, for every real estate transaction there is a buyer’s agent and a seller’s agent whose roles are clearly defined and separate. The seller’s agent will list and market the property and then enter into negotiations with the buyer’s agent. The buyer’s agent will have sourced numerous properties for their buyer before entering into the negotiation.
At goodGround we are uniquely positioned to ease this complex and intense process for everyone involved with highly trained experts who will work with your best interests whether you are a buyer or seller. Contact us today to see how we can help you.