Australian Estate Agents
Real estate agents, who are licensed and governed by regulations sell most houses and units in Australia. It is worth noting the following points:
- They work both for the buyer and seller and will introduce buyers to owners who want to sell their property.
- They find property for buyers, arrange inspections, conduct negotiations, and usually determine all matters relevant to the transaction (e.g. title search, legality of structure), present a written offer, negotiate to obtain the lowest possible price for the property, prepare and explain the Contract for the Sale of Land, liaise with all parties, including solicitors, to facilitate settlement, explain any time extensions for finance approval or settlement and monitor the contract from sale to settlement.
- They manage property for lease or rental.
- Real estate contracts or selling agent agreements are worded to protect the rights and obligations of the seller and the agent.
- The agreement will detail the name of the vendor/ owner, the property details, the agreed fee for the agent on finding a purchaser, terms and conditions detailing the rights and obligations of the agent and the vendor and any agreement relating to the marketing costs which the seller pays.
- Fees are not set by the Government but are between the agent and the principal of the company who holds the Real Estate Agent License.
- The fee is dependent on the quality and quantity of services appropriate to the property for sale.
- The vendor/seller pays the agent's fee.
- Look for services that you feel comfortable with to help you find a property over a reasonable time period, at a reasonable cost and for a fair fee.
- Do your homework and research as much as you can by talking to others who have already purchased.
This is only an outline of what to expect when purchasing property in Australia. It is advisable to speak to experts and find out as much as possible before buying, but be assured it is a reasonably straightforward process and you will find that your money will go a lot further than in the UK.
Some States have professional buyer's agents who will locate and negotiate the purchase of a new property for a fee. Often former valuers or real estate agents, they generally have a good knowledge, but can be expensive. Fees vary, but the full service generally requires a registration fee and a percentage of the purchase price. For example, a house valued from A$501,000 to A$750,000 would have an initial fee of A$2,200 up front, then 1.7% of the purchase price. If the agent is successful in buying a house at auction for you, a payment of A$22,750 and a percentage of the total purchase will make up the fee. However, in the long run, this service may save you time and money, and reduce stress.
