Buyer beware - Buyers Advocates

Buyer beware - Buyer Advocates smh.com.au 7 Nov 2005

Alan Kohler "What is amazing is that almost all buyers' advocates charge a percentage of the sale price; and even more astonishing is that clients are paying it.

Assuming the non-disclosers also charge a percentage, which is a pretty safe assumption, it means that more than 90 per cent of buyers' advocates actually have a stake in driving the price paid by their clients higher.

Vendors paying a percentage of the value to their agent is understandable: you want to give your agent an incentive to get the price up. But on the buying side as well?

Why on earth would you pay your negotiator more for failure - for failing to get the property for a cheaper price?

By paying a percentage of the value of the house, buyers are ensuring that the more they pay for the property, the better their advocate does."