How much will a Buyer Agent cost you?
A great Buyers Agent can be worth their weight in gold. They can take the stress out of buying your dream home or help negotiate a killer price on your next investment property.
When considering whether you want to enlist the services of a professional for your next purchase, you will want to know how much a Buyers Agent costs. Z
Depending on the scope of your brief, your budget, the purchase location and the overall level of service you are looking for, Buyers Agent fees vary. Typically for a full service Buyers Agent, the cost will fall around 1.5 - 2% of a total purchase price.
Property Buyers Agent Fees
In Australia, Buyers Agent Fees will generally fall into one of two structures; Fixed Fee or Commission based. Understanding which type of structure is best for your next purchase will help ensure that you select the best professional for the job
Fixed Fee Structure
Some Buyers Agents charge a fixed, flat fee depending on the services they provide, their experience and track record. A property Buyers Agent fixed fee can range anywhere from a couple of thousand dollars to $20K.
This static style of structure is often preferred by buyers as it ensures against a mis-alignment between themselves and their agent.
By agreeing on a fixed fee ahead of the transaction means that there is a shared interest in securing the property for the best possible price.
Some Buyers Agents base their fixed fees on a sliding scale with tiered fees tied to price brackets (for example $500,000-$750,000, $750,000-$1mil, $1mil+, etc).
Commission Based Structure
Other Buyers Agents adopt a Commision Based Fee Structure and will charge a percentage of the property purchase price. Once again this percentage may change depending on the price bracket that your property falls into, but most commissions will range from 1-3% of the total purchase price.
To begin work, generally Buyers Agents will require an upfront payment when you sign a contract engaging their services. This fee is specific to each provider but will typically range from $1,000 to 50% of the total fee.
Measuring value - what’s best for you?
Depending on the value of your property, engaging a Buyers Agent with a Fixed Fee may work out cheaper for one buyer while a Commission Based structure may be more cost effective for another.
The old adage, ‘you get what you pay for’, however is worth thinking about when making your decision.
If you are looking for the full Buyers Agent service and to leverage the experience and expertise of a professional then you should factor this in when evaluating value.