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Buyers Agents vs Property Finders

Posted on: Friday, March 8 2013

Which One Should You Choose – Buyers Agents OR Property Finders?

There is a lot of confusion around what buyers agents and property finders do, and what the differences between them are.

The term buyers agent refers to a licensed real estate agent who gets paid by the buyer. In New Zealand most properties that are sold by a real estate agent are sold by a sellers (vendors) agent and therefore they get paid by the seller.

Buyers Agents have a legal and ethical obligation to act in the best interests of the buyer and are bound by all of the requirements of the Real Estate Agents Act 2008. This means that they must carry out work for a client under an agency agreement, disclose information as required under the Act, and comply with the Real Estate Agents Authority’s Code of Professional Conduct and Client Care.

A property finder is simply someone who finds a property for someone else. Most property finders in New Zealand are not licensed, although since the introduction of the Real Estate Agents Act 2008, in theory anyone who trades in property should be licensed. They are paid either by a fee or via a back-to-back settlement. This is where they purchase the property themselves then on-sell to a buyer, and the difference in the two sale prices is the fee they make.

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Some buyers agents also use the term property finders. This is because buyers agents are relatively new in New Zealand. It’s a growing industry, however the term is still relatively unknown. It’s more likely that the consumer will understand what a property finder does. In Australia and the US buyers agents are very common.

So what do buyers agents do? They use their skill, experience and contacts to help you find a property to buy. You could of course do it yourself. However anyone who has expertise in something is likely to take less time doing it, know what to look for to avoid the pitfalls, and is likely to do a much better job.

Both buyers agents and property finders can find great properties. The question is, as with any professional, do you value the benefits they provide you with enough to pay the fee they charge.

Before you use a buyers agent or property finder make sure you clearly understand how they work, what they will do for you, the process involved and how they will be paid. This will ensure you have a great experience.

 

By Lisa Dudson
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I Find Property

Lisa is co Director at I Find Property. I Find Property Enabling you to get your hands on some of NZ’s best property investment opportunities is our mission. We are a trusted team of professional, independent negotiators, with years of knowledge and experience. We would love to help you, so visit our website and sign up to our newsletter to receive our great deals.