This can be a fixed fee, but it is usually a percentage (1.5% – 2.5% plus Gst) of the final property purchase price. In terms of the fee structure, most Buyer’s Agents offer several options with prices differing accordingly:
- Full service
- Negotiation only
- Auction bidding service
There are several different ways to structure a fee agreement. For example, it could be a fixed fee for auction bidding or a percentage of the sale price for the full buyer’s agent service. If your buyer’s agent isn’t starting from this baseline, you must ask yourself why. Don’t be tempted to engage somebody just because they offer lower fees. If they can provide great service and add real value for their clients, they wouldn’t have to win new business by offering low fees. A lack of experience, especially in appraising what a property is really worth, can end up costing you much more than you might have saved in fees.
So what do Buyers Agents charge? Generally charge an engagement fee between $3,000 and $6,000 and will then charge the remaining as a success fee when they find the right property for you and successfully negotiate its purchase on your behalf. If you are considering buying a home in the near future, why not employ a buyers agent on your side, working for you and not the seller?
Why does it cost so much?
What might seem like a large financial investment at first, is not really the case. A Buyer’s Agent acts on your behalf to get you the best outcome. They’ll work tirelessly, taking on many of the jobs that would normally consume a large amount of your time.