How Much Are Buyer’s Agent Fees in Sydney
June 5, 2021
At first glance, buyer’s agent fees might seem like an unnecessary expense. When looking into your property investment options, you might start to wonder if it’s better to do everything yourself.
Well, considering how much money and time you could save by working with the right buyer’s agent, it’s safe to say that are well worth the cost.
From data-driven strategies to high-level expertise, here, we’re going over the services buyer’s agents offer, the benefits you’ll receive by working with the right one, and how to select the best buyer’s agent for you.
What services do buyer’s agents offer?
Buyer’s agents advocate for buyers during the process of purchasing a property. Different from real estate agents who advocate for the listing itself, buyer’s agents can help you every step of the way towards buying a property.
While each client is different, bringing different circumstances to the table, every property is also different. So, the services provided by a buyer’s agent often changes from client to client. But in general, the services buyer’s agents offer include:
- Real estate investment strategie
- Negotiation tactics
- Quality property searches
- Connections and resources
Real Estate Investment Strategies
There are countless strategies out there when it comes to approaching real estate investments. Some focus on speed, others on finding bargains. Regardless, it’s important to have a clear strategy going into buying real estate. This is a huge reason why buyer’s agents are essential.
At Wealth 360°, our secret sauce is in creating holistic real estate investment strategies and building long-term relationships with our clients. We help you not only buy properties and expand your portfolio, we want to ensure you’re investing in well-rounded, highly profitable ways.
We’re about strategies that are far more than one and done. We’re in it for the long haul instead of only working with you on a string of one-off purchases. In fact, most of our clients buy more than one property with our buyer’s agents. Even clients that were told they weren’t good candidates in the past have found success with Wealth 360°
In short, buyer’s agents offer strategies that the average person wouldn’t have access to on their own.
Next, buyer’s agents are expert negotiators, which is something not a lot of people can say. A key aspect of a successful real estate investment strategy is knowing how to negotiate the various contracts involved.
We have insider knowledge of property trends, changing prices, and hot suburbs that are going up or down in popularity. We use market research and reliable data to help you negotiate the best price for any given property. We also have the power of scale and volume working in our favour. For example, we can negotiate prices by making bulk transactions on behalf of our clients. We help our clients make money in the process of buying a home with our negotiation tactics.
Keep this in mind the next time you question your buyer’s agent fees in your Sydney property hunt.
Finds Quality Property
Buyer’s agents do all of the heavy lifting in your property search. There’s no way you want to waste time finding available properties on your own. Not only do buyer’s agents save you time in the search process, but you’ll also spend less time at dead-end inspections and you’ll have access to hidden gems that aren’t even released to the public.
If you’re serious about investing in real estate, a DIY approach just won’t cut it. Our buyer’s agents ensure you’re only spending your valuable time on quality properties that will actually return a profit and help you build a money-making portfolio.
Offers Connections and Resources
Another huge perk of working with a buyer’s agent is the fact that they offer invaluable connections and resources that aren’t normally available to the average Joe. Buyer’s agents are well-connected in the real estate industry and have a network that can offer resources well beyond the property transaction.
Our buyer’s agents have relationships with contractors, real estate solicitors, lenders, electricians, and everyone in between to help make your investment property more lucrative and your portfolio more impressive.
You’ll have support every step of the way when you work with a buyer’s agent long after you sign your name on the deed.
Is buyer’s agent worth the money?
Yes, buyer’s agents are well worth the money. Apart from the valuable services they offer that you can’t find anywhere else, there are countless benefits of working with the right buyer’s agent.
However, keep in mind, not all buyer’s agents are created equal. Better buyer’s agents offer better benefits. But before we talk about how to select the best buyer’s agent for you, let’s talk about why buyer’s agent fees in Sydney are what they are.
- Save money and make money
- Save time
- Peace of mind
- Access to connection
Save Money and Make Money
Not only does working with a buyer’s agent save you money, but they can actually help you make money on a property deal.
Let’s start with the money-saving aspect. With our expertly crafted property investment strategies and high-level negotiation skills, buyer’s agents have the know-how to help you save loads of cash on the property you buy.
They’ll offer expert advice that you probably wouldn’t come up with on your own so that you get the most bang for your buck. Plus, their professional connections with the real estate communities means you can rest assured that you won’t get ripped off.
Next, you’ll not only save money, but you could make money with a buyer’s agent. Even after covering the buyer’s agent fees, their expertise can help you make a profit on a lucrative investment property. Buyer’s agents practically pay for themselves! Not to mention, they’re often tax deductible against your investment property income.
Most people know how long it takes to find a property that’s available, meets your requirements, and fits within your budget. Especially when the market is full of buyers without a lot of options available, you also run the risk of putting in an offer, only to get beat out by your competition.
Buying property is a long, tedious property in the best of times, but there’s a way to make it easier and less time-consuming on your end… and that’s by working with an expert buyer’s agent.
Buyer’s agents do all the heavy lifting for you. They’ll find the best properties (including hidden gems that most people won’t know about), draw up all the paperwork and explain it to you, and help with the negotiations and final details. You’ll be along for the ride, but you’ll save a tonne of time with a buyer’s agent on your side.
Plus, don’t forget, time is money! Buyer’s agents are secret weapons to help you save your valuable time to do what you do best. We’ll take care of the rest.
Peace of Mind
When you pay for a buyer’s agent, you pay for peace of mind. And as most people know, peace of mind is worth a lot.
It’s horrible to experience sleepless nights, riddled with anxiety about whether you made the right decision or put in the best offer. With the right buyer’s agent, you can trust that you have a strong team on your side that has your best interests at heart.
No more worrying or stressing about every move you make when you’re investing in property... and that’s really saying something in the real estate industry! When it comes to making one of the biggest purchases of your entire life, hiring a buyer’s agent for peace of mind is definitely worth it.
Another reason why buyer’s agents are well worth their buyer’s agent fees are their connections. At the end of the day, it’s really more about who you know than what you know and buyer’s agents can point you in the right direction at every stage of the property purchasing process.
That includes helping you find reputable lenders, quality real estate solicitors, and efficient contractors. And even after the keys change hands, buyer’s agents can help.
How to Select the Right Buyer’s Agent
So, now that you have more of an understanding of what buyer’s agents do and the benefits they offer buyers, you’re probably wondering how you can choose the right one for your circumstances.
Again, not all buyer’s agents operate in the same way. So, here are a few steps to take to select the best buyer’s agent possible.
Step 1: Know what you want.
Before you make any decisions, it’s important to know what you’re looking for. Of course, it’s not always possible to know exactly what you need straight away, so it’s ok if you don’t have a completely clear picture of your requirements.
But, having some parameters to go off can help the selection process run more smoothly. The most important thing to ask yourself is, how strong is your desire to make money? How fast do you want to reach your wealth goals?
From there, your buyer’s agent can balance the risk, reward and lifestyle implications to match your individual desires.
You’ll also want to set up a sort of wish list complete with practical guidelines. Are you looking for a house and land package or do you want to buy a fixer-upper? What’s your budget? Have you made other financial considerations? Which suburb do you want to buy in? What is your overall goal with purchasing a property?
These are just some examples of questions to ask yourself before you start your search for the right buyer’s agent as it will help you narrow down your options and make the selection process easier.
Step 2: Do your research.
Once you have a better understanding of what you’re looking for, you can start to do your research to find a buyer’s agent that fits the bill. Again, you’ll probably come across amazing perks that you previously hadn’t even thought of, so be sure to use your wish list as a guide instead of hard and fast rules
For example, at Wealth 360°, we do it all in terms of strategies, negotiations, and getting the best deals for our clients. On average, our clients save 20% or more compared to the rest of the market. However, we also have a strong focus on our deeply humanitarian mission.
We pledge a minimum of 1% of our revenues to various initiatives supporting underprivileged communities as well as for charities supporting children’s and women’s rights. We focus on helping more wealth get into the hands of good people who will give back to their communities to support meaningful, positive change.
The point is, yes, your buyer’s agent should help you buy the best property for the best price. But they should also have a clear mission that you can stand behind. So, do your research!
Step 3: Ask the right questions.
Last but not least, you’ll set up a consultation with the buyer’s agents you’ll potentially work with. These meetings are an opportunity to see how you communicate with one another and get a feel for whether or not it’s a good fit.
Like we mentioned earlier, buying property is a huge deal and it’s a decision that shouldn’t be taken lightly. So, you’ll want a buyer’s agent that you not only trust but who you get along with. They’ll be your partner from start to finish and you’ll want to ensure a solid rapport.
On the logistical side, here are a few questions to ask a buyer’s agent during your initial consultation.
What are their fees?
Buyer’s agent fees in Sydney can vary widely. As one of the most desirable cities in the world to live in, property prices see a huge range of variation. So, you’ll want to know what the buyer’s agent fees consist of, what it covers, and how you’ll pay.
Buyer’s agent fees are generally charged in one of three ways: as a fixed price, as a tiered fixed price, or on a commission basis.
Buyer’s agents who charge a fixed price give you their fees upfront while offering specific services for those fees. These fees range anywhere between a few thousand dollars to $15,000 in Sydney. Some buyer’s agents offer only full-service packages which include searching, negotiating, and bidding while others offer single services like negotiation only.
Another option you might be presented with is tiered fixed fees based on the price bracket of the property you buy. A tiered fixed price could like something like this.
Keep in mind, once properties go over $1 million, buyer’s agents often start charging a percentage base rate as well.
Finally, buyer’s agents might charge a percentage of the home you end up buying. Most agents will charge somewhere between 1% and 3% of the property price.
At Wealth 360°, the majority of our services have a fixed price model which we feel works best.
It means you’ll know our fee upfront and no matter how expensive the property you buy or how long the process takes, you’ll pay the same amount.
This also removes any conflict of interest and helps you rest assured that we’ll never push you to buy a more expensive property if it’s not in your best interest. We don’t earn a commission so you can trust that our advice is sound.
We offer full facilitation, exclusive access to a range of properties not available anywhere else and, generally, we offer a rental guarantee. Our clients often save 20% or more compared to the market on premium, in-demand properties.
What are their specialities?
The next question to ask a buyer’s agent during your consultation is what they specialise in. You don’t want a buyer’s agent that takes a one-size-fits-all approach. Instead, you want experts with a proven track record of specialised strategies that work for specific goals.
For example, if you’re looking to invest in real estate in order to boost your wealth, then the buyer’s agents at Wealth 360° could be the perfect fit.
What experience do they have?
Numbers don’t lie and when you can see that a buyer’s agent has secured major wins for their clients, you should take that experience into account.
At your consultation, ask about their previous success stories and details of their track record. It’s a great way to gauge what that particular buyer’s agent may be able to do for you.
Do they share your values?
Finally, decide if this buyer’s agent shares your values. What strategies do they use to build wealth? Are they about long-term goals or “get money quick” schemes? Do they give back to the community or do they seem on the greedier side?
No one wants to judge a book by its cover and it’s ok if someone’s values differ from your own. However, when it comes to selecting a buyer’s agent who you can trust, seeing what they value and how those values match your own is an important consideration to make.
What services do buyer’s agents offer?
Buyer’s agents offer services including real estate investment strategising, property searches, negotiation tactics, bidding, and offering resources. Most buyer’s agents offer packages deals for these services that help buyers make the best property purchasing decisions.
Is buyer’s agent worth the money?
Yes, buyer’s agents are worth their buyer’s agent fees in Sydney because they help you save and make money, save time, give you peace of mind, and offers connections.
How do you select the right buyer’s agent?
To select the right buyer’s agent you’ll need to:
1) Understand what you’re looking for.
2) Do your research.
3) Ask about buyer’s agent fees, their specialities, experience, and values.