This example will clearly show why it is important for you to choose a fixed rate buyer’s advocate like Your Australian Property Solutions (YAPS). Not one where the fee is based on a percentage of the purchase price like is the case with most of our competitors, where their fee increases as the purchase price of your desired property increases. Clearly a conflict of interest situation for a buyer’s advocate that can result in you paying more than the property is worth and paying the buyer’s advocate an inflated fee for the privilege. We offer our clients fee transparency and not a fee that increases as your purchase price increases.
I can best illustrate this if I go back a few years when I was working in a suburban real estate agency representing a vendor/ seller.
The vendor/ seller told me that she would not sell under $950,000. As her selling agent I was committed to achieving the highest price, even though I had told her properties such as hers were selling for around $850,000.
Moving forward to auction day, about the only person present was a buyer’s advocate working on a percentage rate. When I told the buyer’s advocate the vendor wanted $950,000, the advocate said he thought the property was only worth $850k. ” Don’t worry I’ll work on my client and bring them up $100k” he said.
Finally, after a few days the buyer’s advocate did bring the purchaser up to the vendor’s asking price. As this buyer’s advocate worked on a percentage rate they were able to obtain a larger fee for themselves but very clearly did not do the right thing for their purchaser client.
On the other hand, we at YAPS work on an agreed fixed rate which is always discussed upfront which works in your best interest.
In the above example, had we been the buyer advocate acting for this purchaser, we would have negotiated a purchase price at or below $850,000 which would have enabled the purchaser to secure this property at the lowest possible price and at the best value.