Over the last few years property buyers’ brokers have been hyped by the media as the newest players in the Irish property market … but what are buyers’ brokers and what exactly do they do?
Firstly, buyers’ brokers are the only independent property experts who represent property buyers exclusively. They do not sell property or receive payment of any kind from the seller. They are not connected with any sellers’ agents or auctioneers and for that reason, they have access to every property that is currently on the market, and to a large number of off-market properties also!
While the process may vary slightly from agent to agent, depending on the particular circumstances of the purchase, the steps generally taken are as follows:
1. Initial consultation between buyer and proposed broker to discuss buyer’s requirements and to take full instructions. Most companies offer this service on-line, over the phone or in person.
2. Your broker will then initiate the property search process. This involves contacting local sellers and/or their agents. Experienced buyers’ brokers generally have a high level of familiarity with properties currently on the market, their guide price and more importantly, their genuine value! They also have access to significant off-market opportunities from a variety of sources.
3. The broker will consider up to 100 properties and view approximately 10 of those before reporting to the buyer. They will then put forward a selection of different properties so that the buyer may shortlist on the basis of suitability. From as early as the first viewing, an experienced buyers’ broker will engage in non-committal negotiation with the seller so that a realistic deal can be put forward at early stages. This is particularly important for investors.
4. From that report, the buyer will decide which properties, if any, to view. The buyers’ broker will then arrange a day of viewings for the buyer.
5. After a successful day of viewing, it is likely that the buyer will be ready to make an offer on at least one property (but ideally, a number of properties). The buyers’ broker will negotiate the best possible deal in terms of price and value added terms and contract conditions.
Buyers’ broker will then guide the buyer through the entire purchasing process and offer recommendations for ancillary services, often at discounted rates. For example: legal, financing, engineering, construction and decorating.
In relation to fees, buyers’ broker operate on a commission basis (generally 1.5% – 2%) and will invoice their fee at the same time as arranging the 5% booking deposit, which is handed over to the sellers’ agent.
For further information regarding buyers’ broker please contact Buyers Broker Ltd. on firstname.lastname@example.org .