We prepared a presentation the other day to deliver to a group of mortgage brokers about the benefits of using our services.

Clients come to us with a budget and we charge a fixed fee for our services. Other buyer’s advocates work with a percentage. Our figures certainly tell a clear story – our fee structure and our approach to fees have saved our clients thousands of dollars.

We reviewed the last ten purchase files to see how much we had been able to save individual clients, based on the budget they provided us in their property brief.

 
Savings From $9000 To Nearly $150,000
In the last ten purchases for clients, the smallest saving we achieved was $9000 for a townhouse bought as an investment property in Brunswick. The largest saving, we achieved was $146,000 for a one of two-villa unit in Box Hill South bought for the clients’ son to live in.

We reviewed a year’s worth of files, and discovered that the savings on average were $98,000.

These savings are based on client budgets. In addition, as part of what we do for clients as their buyer’s advocate, we also provide savings compared to other property sales from the REIV data base.

When we saw the figures, we asked ourselves this question: would we have made these savings for our clients if we were remunerated on a percentage of the purchase price instead of a fixed fee? Of course, we would. But not every advocate is the same.

 
Our Fixed Fee Philosophy
Our fixed fee philosophy came about after experience working with another advocacy firm where the philosophy was oriented towards getting the clients budget as high as possible.

The high budget can definitely enable the advocate to facilitate a purchase in the shortest possible time – but wouldn’t it be better for the client if this could be done on a lower budget? This was also the impetus for establishing our own business.

The way we figure it is this: the faster we can buy a property for a client the larger the profit. Yes, that’s a great outcome for the advocate when it happens on the first property we recommend but it’s not always a great outcome for the client if their budget has been artificially raised.

 
We Don’t Help Clients Pay Too Much!
A client does not need an advocate to over pay for a property. They can do that themselves! Jokes aside, this is the unfortunate outcome for a significant number of clients who choose our competitors.

We know that a great outcome for a client is when they buy a property we recommend at a price that is clearly below that of recent comparable sales data.

 
Percentage – Fast Results But At What Price?
We’ve noticed more than once that we can attend an auction and compete against other well known buyers advocate firms who fight each other to buy a property at well above our budget. And yes, these advocates are working on a percentage commission.

And we’ve also noticed that within a couple of weeks we can find another property for our client to buy that the client likes more, at a better price.

 
We Take Our Obligation Seriously
In our capacity as buyer’s agents it’s our fiduciary obligation to get the best result we can for our clients. We undertake to get the best price for our client on the most favourable terms and conditions.

Experience has proven to us that buyers advocates who work on a percentage are more inclined to work their client’s interest up to level to create a larger income source. We believe in the theory that a better result is more important and more satisfying to us than a quicker sale and a slightly larger commission.

 
Our Fees Ensure You’re Buying A Property That’s Right For You – Within Your Budget!
IPB has been buying property for clients as a trusted buyer’s advocate for more than 12 years. We offer clients a free no obligation meeting to discuss the pros and cons of buying various types of properties for investment. Call us to discuss your next home or investment property purchase.

GET IN TOUCH

If you would like to engage us to buy a home, an investment or to manage a property,
or learn more about our services, we’re ready to hear from you.

1300 472 289

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