Should I use a buyer’ss agent for PPOR?

Hi guys,

Was doing some research about buyer’s agent, their services, fee structure etc. Seem like the fees are around $7000, or between 1 – 2% of the purchase price.

I’m planning to upgrade my home. Buy a new PPOR, turn my current place into an IP. My understanding is that if you use buyer’s agent to purchase an IP, their fees are tax deductible? But not if you were to purchase a PPOR because it’s not tax deductible – is this correct?

Say if I purchase a $600K new home (PPOR) and use a buyers agent (assuming he sealed the deal at $600K), his fee would be around $12K (using 2% rate).

While I do understand that buyer’s agent can help you find and negotiable the best property that suits your exact requirements, help to bid for property for you etc, I’m trying to justify how much ROI in paying them some $7000 – $12000 in fees where quite a lot of property out there right now are private sale property.

I was under the impression that buyers agent would be more useful if you negotiate an Auction sale, because they can take the emotions out of the purchase where demand is more than supply.

I have a pretty good idea of the price range of the suburb I wanted to buy in. And I like to do the research, visit the site, talk to sellers agents.

So, that leaves me with the negotiating bit once I found the property I wanted. How much value can a buyer’s agent provide in a softening market (such as now, where buyers have more upper hand and bargaining power)?

Any comments are welcome.