It is easy to estimate how much a professional earns in many occupations. Still, while one may assume that it is easy to guess the amount that Brisbane buyers’ agent gets, it takes effort to get accurate information. It can get complicated to get the correct answers that help the buyer acquire their dream homes. We have therefore decided to solve this answer once and for all to get the best results.
No need to worry; we won’t bore you with technical jargon because we want to make it as simple as possible.
How much do real estate agents make yearly?
Does a Brisbane buyers agent make up to $40,000 per annum? Not so fast. The best way to understand how brisbane buyers agent get their commission is to look at it from the perspective of the property. In terms of the average, if we set a standard at 40K per annum, it may further skew up or down for the licensed real estate buyers agents, whether on a full-time or part-time basis. For instance, if a relative wants to get a property, you can help them to figure out the property by standing in as an agent. Meanwhile, there is more than goes into buying real estate property.
Related: Frequently Asked Questions (FAQ) on Brisbane Buyers Agents
Understanding the professional cases and the hidden costs
We mentioned that answering the question of what a Brisbane real estate buyers agent earns can be tricky. First, we will have to understand the professional issues that may surround what we aim to get. Moreover, there may be some associated hidden costs for Brisbane buyers agents. Let us try to look at this from the context of a typical example.
How does a buyer’s agent get paid?
In a case where the real estate buyer acquires a home successfully from a seller, the relationship involves a transaction. In a simple sense, it is simply an exchange of ownership between the two parties if there is no help from any other person. Whatever the terms of the agreement between the home buyer and the other party, do they get to transfer the home to the buyer? On the other hand, if they use a Brisbane buyer’s agent, the agent works between them.
At the end of the deal, the agent will get a commission, calculated as a percentage of the house’s total price. Ideally, the commission ranges between 3 and 6%, usually split between the sellers’ agent, the listing agent, and the buyers’ agent. The home buyer enters a challenging situation without a buyer’s agent because there are many agent options. Moreover, using an agent brings you into the agents’ pool of opportunities.
For example, a Brisbane buyers agent has better and faster access to a pool of properties from which the buyer can choose. In addition, using an agent also gives a negotiation advantage to the buyer. An agent helps the buyer to get a better deal because the agent has experience in the real estate market and trends. Otherwise, the buyer alone cannot get all the knowledge and understanding of a real estate agent. Agents can also spare the buyer from complex procedures.
Hidden costs
While we have given an overview of the basic costs of hiring a Brisbane buyers agent, we cannot but mention some hidden fees. Again, we will attempt to describe these hidden costs through a real-life case scenario. For example, if an agent discovers the blessing of building a team of real estate experts, there is a high tendency for agents to spend more money than when he handles the jobs alone. Running a Brisbane buyers agency costs money.
The real estate business has many conditions ranging from salaries to introductory contract commissions. Over time, the passion and ambition to succeed will help the agent to determine how profitable the company will be. Below are some hidden costs buyers’ agents incur in discharging their duties.
- Real estate industry fees
Registered and licensed Brisbane buyers agent has to pay association dues, but some agencies may cover that in renewals. Aside from the significant umbrella association of all real estate professionals in the city or state, there may be other associations or unions to which the Brisbane buyers agent may be a registered member.
- Transportation fees
At a contract initiation, the agent needs to factor the distance of his office/home to the area of research. Whether he rides in his car, takes a cab or train, or even takes a walk, working as a real estate agent in a city like Brisbane can be stressful. Several pieces of evidence show that the job of a buyer’s agent can also be very physically exhausting. Some agents go as far as sleep off in their offices.
But whether they like it or not, as long as the buyer is yet to get the satisfaction, they need to keep working. To make matters worse, the agent gets nothing until the deal is completed and the buyer pays. Otherwise, the effort becomes a waste no matter how much work he puts in if the buyer does not eventually pay.
When the agent is ready to show the property to the buyer, they will still have to drive together to inspect as many properties as possible. Agents’ movements may also involve going across towns to meetings, open houses, shows, auctions, and the rest. What the agent spends on transportation is a large chunk of the regular expenses on vehicle maintenance and refueling gas.
- Marketing
Agents who desire to get deals cannot just depend on word of mouth to get leads. They have to engage in both active and passive marketing. And because marketing is a world on its own, different approaches can work. But the best has always been to start with the combination of all. Over time, the Brisbane buyers agency will identify the best strategy that yields better results than the rest.
That now will be the one to dwell on, and the marketing budget may focus on how to get results from different methods. For instance, some strategies include online ad campaigns, business cards, posters, traditional marketing advertisements, website promotion and maintenance, and other things.
Conclusion
On a final note, the charges of a Brisbane buyers agent depend first on the city’s real estate market. In addition, the last commission must cover all the hidden costs the buyer agent has spent and leave a profit for him. In all, we can establish that the field of Brisbane buyers agency is lucrative, making the experience worthwhile.