How Much Do Buyer’s Agent in Sydney Charge
June 24, 2021
One of the first questions you might have about hiring a buyer’s agent in Sydney is, what do they charge? It makes sense that you’d want to know what you’ll be investing by working with a buyer’s agent and whether it fits within your budget.
The truth is, there’s no simple answer as every property, buyer and market is different and therefore, you won’t find a one-size-fits-all price for buyer’s agents in Sydney.
Still, you can get a better idea of how much buyer’s agents charge by understanding common pricing structures. From there, you’ll be able to sort out what might work for you as a client.
So, without further ado, let’s go through three of the most common pricing structures that buyer’s agents use and how they might influence which buyer’s agent you decide to go with.
How much does a buyer’s agent in Sydney charge?
If you currently live in Sydney or you’ve checked out some of the housing prices in the area, you’ll know that Sydney is one of the more expensive areas to live in. However, considering the incredible city, commerce and community in Sydney, it’s quite desirable… what can we say?
However, that doesn’t necessarily mean a buyer’s agent in Sydney can’t be comparatively affordable. In fact, our buyer’s agents at Wealth 360° have been known to make money for their clients in the process of purchasing a property.
Long story short, there’s not a single rate or fee that all buyer’s agents adhere to. But, we can still go over the three main ways buyer’s agents in Sydney charge their clients.
The first way buyer’s agents charge their clients is through commission-based fees. Generally, your buyer’s agent’s commission will come to anywhere between 1% and 3% of the sale price of the property you end up buying.
While buyer’s agents are legally bound to advocate for their clients, there’s always a worry that commission-based fees encourage agents to suggest a property with a higher price tag for the promise of a bigger commission. Even if it’s unconscious bias, it may be something you want to consider when presented with commission-based fee structures.
Another common fee structure that many buyer’s agents use is based on tiers. Now, remember, every agency is different and fees often vary. However, to give you an example of tiered fees, have a look at the table below.
Tiered fees are technically fixed fees except that the fixed fee you’ll pay depends on the final property sale. So, if your property price falls on the higher end of a range, you could get a great deal with a tiered fee structure. But, if the property price falls on the lower end, you could end up paying too much.
Overall, tiered fees make sense but you may want to consider negotiating some wiggle room within the property price ranges.
Last but not least, some buyer’s agents charged fixed fees where you pay the same price no matter the final property price.
If you think about it, fixed fees make a lot of sense. Since a buyer’s agent’s job is to find, evaluate and negotiate properties on your behalf, the end price shouldn’t change how much effort they have to go to to get you a great deal.
And when you consider the potential for unconscious bias with commission-based fee structures, fixed fees mean you can fully trust your buyer’s agent’s advice. Not to mention, fixed fees can help you budget more accurately and can offer more peace of mind since you’ll know how much your buyer’s agent will charge from the get-go.
As you can probably tell, we’re certainly in favour of fixed-fee pricing structures for buyer’s agents which is why at Wealth 360°, that’s how we charge the majority of our clients.
Looking for a buyer’s agent in Sydney? Learn more about our pricing structure and how we charge by booking a consultation. Contract Wealth 360° today!