A good buyer’s agent can be an invaluable asset in being able to secure a great property at a very good price in today’s competitive property market. How much do buyers agents usually charge and what type of Fees or Commission can you expect to pay?
Well, it varies quite a bit depending upon which city you wish to buy in and which agent you use. There are a couple of different fee and commission structures based around a percentage for service and a flat fee.
Most buyers agents also charge an initial signing engagement fee that is usually non-refundable. The engagement fee varies from $990.00 +gst to $2,500 +gst depending upon the buyer’s agent used and what type of service you require.
Here is an explanation of the two common payment models :
Some buyers agents charge a fixed fee for their services. This is very much the minority for a number of different reasons. What fee they charge will vary depending on the type of service you require from the agent (full search, negotiating a sale or auction bidding only), . Some buyers agents will also have a multi-tiered fee structures based on the value or purchase price of the property you are looking to purchase.
As a general guide, Fixed Fees for buyer’s agents and advocates typically range from around $6,000 dollars up to $15,000 for most homes or units, although the fee may be higher for substantial premium properties. The fee can be as low as $3000 for the most basic level of service from your agent, such as bidding at an auction or negotiating a purchase on your behalf where you have identified the property.
The majority of buyers agents charge a commission for their services, calculating their fee as a percentage of the purchase price of your property. Very similar to what sales agents do. The Buying Fee is usually lower than what the sales agents charge though. The size or percentage of this commission could vary depending on the price bracket your property falls into, and what level of service you require.
As a general guide, Buyers Agents fees/commissions range from 1.5 % to 2.8% + gst of the purchase price. To give you an idea of how much you could pay in fees under a commission model, here is a fee range calculation 1.8% to 2.7% + gst fee range for a variety of properties:
$400,000 – Fee : $7,200.00 +gst – $10,800.00 +gst
$600,000 – Fee : $10,800.00 +gst – $16,200.00 +gst
$800,000 – Fee : $14,400.00 +gst – $21,600.00 +gst
$1,000,000 – Fee : $18,000.00 +gst – $27,000.00 +gst
Buyers agents fees and commissions
Our research shows the lower rate of commissions is 1.7 %+GST and the highest is 2.7 % +gst. Flat Fees are usually around $12,000
Sydney
Our research indicates the lower rate of commissions is 1.5%+GST on and the highest is 3.0 % +gst. Flat Fees are usually around $14,000
Sydney’s higher property prices make for a lot of variation in agents fees.
Melbourne
Recent analysis indicates the lower rate of commissions is 1.6%+GST on and the highest is 2.8 % +gst. Flat Fees are usually around $13,000.
Melbourne’s high property prices see a lot of variation in agents fees.
Perth
A poll of agents indicates the lower rate of commissions is 1.8%+GST on and the highest is 2.5 % +gst. Flat Fees are usually around $11,000.
Perth prices are recovering so we are seeing a lot of variation in agents fees.
Gold Coast
Recent analysis indicates the lower rate of commissions is 1.8 %+GST on and the highest is 2.6 +gst Flat Fees are usually around $12,000.
Gold Coast property prices are starting to move so agents are adjusting their rate.
Adelaide
Recent analysis indicates the lower rate of commissions is 1.5%+GST on and the highest is 2.4 % +gst. Flat Fees are usually around $10,000.
Adelaide has some of the lowest levels of agents fees.
Canberra
Our research indicates the lower rate of commissions is 1.8%+GST on and the highest is 2.8 % +gst. Flat Fees are usually around $12,000.
Canberra agents are about middle of the road for their fees.
