Buying property in Australia often means engaging a buyer’s agent. But how do their fees work? Do you pay a fixed fee or a percentage? Does it vary by city? Here’s a clear guide to help you compare, especially if you're looking at Sydney, Melbourne, or Brisbane.
Fee Structures Explained
There are three primary ways buyer’s agents charge for their services:
1. Percentage-Based Fees
Most commonly, you'll pay a percentage of the purchase price plus GST. Rates typically range:
Between 1% and 3% across Australia, depending on service level and market competitiveness.
Some agents quote 0.9% to 3%
2. Fixed Fees
A flat charge agreed upfront, regardless of property price. Range:
Generally from a few thousand dollars to upwards of $15,000–$25,000 for full-service packages.
Factors such as service level, negotiations, auctions, and due diligence can affect the price.
3. Tiered or Hybrid Models
Fees vary by property price brackets. For example:
2.5% for purchases under $500,000
1.5–2% for properties between $500,000–$1M
Lower percentages for higher-priced homes
Hybrid models may offer an initial percentage estimate followed by a fixed rate once scope is fully defined.
Fee Models by Major Cities
Sydney (NSW)
Percentage-based fees: 2%–3% + GST
Fixed fees: from as low as $1,000 for auction support, up to $30,000 for full-service engagements.
Melbourne (VIC)
Very similar to Sydney, with percentage fees around 2%–3% + GST. Fixed packages can range between $500 (for specific services) up to $25,000.
Brisbane (QLD)
Generally lower: percentage fees of 2%–2.75% + GST, or fixed fees from $500 (for limited services) up to $20,000 for full-service packages.
Other Cities & Regions
Canberra (ACT): 1.8%–2.8%, with fixed fees around $12,000.
Perth (WA): 1.8%–2.5%, or fixed around $11,000.
Hobart (TAS): 1.5%–2.5%, fixed between $13,000–$20,000.
Choosing the Right Fee Model: Pros & Cons
Percentage-based fees are often used for comprehensive services, search, shortlist, due diligence, negotiation, and settlement.
Always confirm what’s included: auctions, off-market searches, reports, conveyancing support, etc.
Key Factors Influencing Fees
Several elements affect a buyer’s agent’s fee:
Location: More competitive markets like Sydney or Melbourne typically command higher fees compared to regional areas.
Scope of services: Full-service engagements cost more than negotiation-only or bidding support.
Specialisations or expertise: Agents with access to off-market listings or deep local networks may charge a premium.
Upfront payments: Engagement or retainer fees may apply, especially with in-demand agents, often deducted from final cost.
Tax considerations: For investment properties, buyer’s agent fees are typically tax-deductible; not so for owner-occupiers.
Example Cost Estimates
Sydney: 2.5% of $1M = $25,000; fixed full-service up to $30,000.
Melbourne: 2% of $800k ≈ $16,000; fixed packages $7,000–$25,000.
Brisbane: 2% of $700k ≈ $14,000; fixed packages up to $20,000. 2.2% of $600k ≈ $13,200; fixed ≈ $12,000.1.8% of $500k = $9,000; fixed $13,000–$20,000.Buyer’s agent fees in Australia vary widely based on fee structure, location, and service scope.Percentage-based suits buyers comfortable with variable costs tied to property price.Fixed fees are ideal for those wanting clarity and budget security.Tiered or hybrid options offer nuance but require close attention to brackets and inclusions.To ensure you’re getting value:Ask for a comprehensive fee breakdown including services and GST.Compare multiple agents in your city.Clarify engagement terms like retainer, exit clauses, and success fee triggers.Factor in tax implications, especially if it’s an investment purchase.With clarity on fee structure, you can make an informed decision and avoid surprises in your property journey.
Frequently Asked Questions
How much does a buyer’s agent cost in Australia?
Buyer’s agents typically charge 1% to 3% of the purchase price plus GST, or a fixed fee that can range from $5,000 to $30,000, depending on the city and level of service.
How much does a buyer’s agent cost in Sydney?
In Sydney, buyer’s agent fees usually fall between 2% and 3% of the purchase price, or fixed fees of $10,000 to $30,000 for full-service packages.
How much does a buyer’s agent cost in Melbourne?
In Melbourne, buyer’s agents often charge 2% to 3%, or fixed fees between $7,000 and $25,000, depending on scope and property price.
How much does a buyer’s agent cost in Brisbane?
In Brisbane, fees are typically lower, with percentage rates of 2% to 2.75% or fixed packages from $5,000 to $20,000.
Are buyer’s agent fees tax deductible?
Yes, for investment properties buyer’s agent fees are usually tax-deductible. For owner-occupied homes, the cost is generally not deductible.
Which is better: fixed fee or percentage?
Fixed fees are predictable and easier to budget for.
Percentage fees scale with property price and can incentivise savings.
The best option depends on your budget, property price range, and service expectations.
