| Buying a retirement home can be a confusing and | | | | know what clients need in their retirement home. |
| complex business. That is why it can make sense to | | | | Often, they are able to suggest features which the |
| use a buyer's agent. A buyer's agent is an | | | | client hasn't even considered, such as a hard-stand |
| independent expert who assists with research and | | | | area for parking a caravan or boat, or access to |
| advice, then negotiates the purchase from the | | | | medical facilities. |
| vendor on behalf of their client. | | | | The fees charged by a buyer's agent can vary. In |
| Buyer's agents became increasingly popular in the | | | | the residential property sector buyer's agents usually |
| residential property sector over the last 10-15 years, | | | | charge a fee calculated as a percentage of the |
| as investors wanted to buy property interstate and | | | | purchase price, however it is thought that charging a |
| cashed-up expats sought to get a toe-hold in the | | | | fee based on a percentage of the purchase price |
| Australian property market for their return from | | | | does not provide an incentive for the buyer's agent |
| overseas. In the US, it is estimated that well over | | | | to negotiate a discount on the purchase price. |
| 50% of the population use a buyers agent to assist | | | | Is it worth the Fee? Because buyer's agents have an |
| in the home buying process. | | | | intimate working knowledge of how the different |
| However buyer's agents specializing in the retirement | | | | purchase schemes operate, they know where |
| living sector are much harder to find due to the | | | | negotiations can be pushed with the vendor to |
| complexity of the purchase contracts and specialized | | | | achieve the best outcome for a client. In many |
| nature of the industry. Owners and developers of | | | | instances they can actually save a client money. |
| retirement communities spend large amounts of | | | | Most buyer's agents pride themselves on their |
| money on legal advice to enhance the profit and tax | | | | independence, however prospective clients should be |
| outcomes of their investment. This has resulted in a | | | | careful to confirm their chosen agent does not also |
| wide variety of purchase schemes from basic strata | | | | accept commissions or kickbacks from vendors. |
| freehold through to the lease-loan and deferred fee | | | | States and Territory legislation expressly prohibits an |
| arrangements, all of which are considerably more | | | | agent from accepting payment from the buyer as |
| complex than a standard residential property | | | | well as the seller. |
| purchase. | | | | By law, a buyer's agent must be a licensed real |
| Purchase schemes can vary greatly between villages | | | | estate agent in the state or territory in which they |
| and even within villages, making it very difficult to | | | | operate. This provides the client with a framework of |
| compare "apples with apples". A good buyer's agent | | | | legal protection through the applicable state or |
| will understand the different schemes available and | | | | territory legislation that surrounds real estate agent |
| advise their client on the financial impacts of each | | | | licensing. |
| option. | | | | With the growing corporatization of the retirement |
| It can also be daunting for seniors to relocate to a | | | | living sector and involvement of sophisticated |
| new location. A buyer's agent can assist with | | | | operators such as Macquarie Bank, Stockland and |
| researching preferred destinations and identifying the | | | | Lend Lease, it is important for purchasers to take |
| specific property features required by the client. This | | | | advantage of every opportunity to ensure they |
| service can be invaluable with the large amount of | | | | make the best decision possible. A buyer's agent |
| information that potential purchasers must evaluate. | | | | could well be the "unfair advantage" a retiree can use. |
| Because they work in the sector every day, they | | | | |