One of the first questions people ask when they start looking into our buyer’s agents is often, how much are the average buyer’s agent Sydney fees?
So, here we’re offering a breakdown of average buyer’s agent fees including how they’re structured and what you can expect if you’re looking for a buyer’s agent in Sydney.
How do buyer’s agents set their fees?
Buyer’s agents often set their fees in one of three ways: commission-based fees, fixed fees or tiered fee structures.
Commission-based fees are common in the case of buyer’s agents. Commission-based fees mean that their fee will be a percentage of the cost of the property you end up purchasing.
Commission-based fees are most often charged after the property closes. After all, you can’t calculate a percentage of the final property price without first closing on the property. As a buyer, this ends up being an additional cost you’ll have to pay out of pocket at the end of the process, which many see as a downside to commission-based fees.
Another potential drawback of commission-based fees is a problem that many customers have with commissioned salespeople. Since their fee depends on the final sale, there’s a chance that you won’t get the best advice and that your buyer’s agent will do anything to sell you the most expensive property.
Of course, this won’t always be the case as it’s bad for their business to get an untrustworthy reputation. Plus, buyer’s agents are legally bound to advocate on behalf of the buyer no matter what. Still, there could be an unconscious bias on the part of buyer’s agents who operate on commission-based fees and it’s certainly something to consider.
Fixed fees are what we most often use here at Wealth 360°. We’ll offer a flat rate for most residential and investment property options.
To us, it’s important that you can trust our advice at every step along the way. Additionally, we find that it helps our clients to better budget for the cost of a quality buyer’s agent without the worry that hidden fees might pop in out of nowhere.
In short, fixed fees are the most straightforward type of buyer’s agent Sydney fees. We offer a fixed upfront rate and it’s as easy as that.
Tiered Fee Structure
Buyer’s agent Sydney fees that operate on a tiered structure are a bit of a blend between commission-based fees and fixed fees. At the end of the day, they’re fixed fees that depend on the final purchase price of the property you decide to buy.
So, if your final property price is on the lower end of the scale, you’ll pay a lower fixed fee and if your property ends up on the higher end of the price range, you’ll pay a higher fixed fee. A tiered buyer’s agent fee structure might look something like this:
Some consider the tiered fee structure to be the best of both worlds and a solid middle ground between commission-based fees and fixed fees. But keep in mind that if you’re at the lower end of one of these ranges, you could be paying more than you need to.
Average Buyer’s Agent Fees
So, you might be wondering, what are the average buyer’s agent Sydney fees? Well, considering that the real estate market in Sydney is always changing, it’s tough to pin down a specific number. But, here’s our best attempt. Just keep in mind that these averages aren’t set in stone.
The average commission-based buyer’s agent fees in Sydney are usually between 1.5% and 3% of the final property purchase price.
The average fixed buyer’s agent fees in Sydney comes to around $14,500, ranging from between $8,000 to $21,000.
These averages depend on your buyer’s agents level of expertise, experience and specialties. So, remember that (as with anything), cheaper isn’t always the best way to go and only working with big names isn’t necessarily your best bet either.
Do your research and find a buyer’s agent that fits within your budget, aligns with your values and has experience with what you’re looking for.
Interested in learning more about our buyer’s agent Sydney fees? Contact us today!