Understanding how buyer’s agent Sydney fees work can be quite confusing. With a variety of fee structures and different ways that buyer’s agents charge their clients, it can be an overwhelming process to sort through it all.
To help you understand how buyer’s agent fees work, we’re going over the basics of buyer’s agent fee structures and how buyer’s agents typically charge their clients.
How do buyer’s agent fees work?
Let’s start with how buyer’s agent Sydney fees are typically structured. You’ll notice that the buyer’s agents you’re looking into charge their fees in one of three ways: commission, fixed fees or tiered fee structures.
The first way that buyer’s agents fees work is through commissions. Your buyer’s agent will earn a commission on the final purchase price of the property that they help you to buy. In Sydney, this commission ranges from between 1.5% and 3% of the property price.
Many people don’t want a buyer’s agent who charges a commission because they find them harder to trust. Of course, all buyer’s agents are legally required to operate in the best interest of their client at all times, but when buyer’s agents are working for a commission, their advice can easily be swayed, even if it’s unconscious. So, just keep that in mind.
Next, some buyer’s agents charge fixed fees. This means that no matter what the final property price ends up being, you’ll pay your buyer’s agent the same amount. The average fixed fee in Sydney ranges from $8,000 to $21,000 with an average of about $14,500.
Tiered Fee Structures
Finally, some buyer’s agent Sydney fees are structured in tiers. This structure, in a way, blends both commissions and fixed fees. In other words, you’ll pay a flat fee depending on the final purchase price of your property within a certain range.
So, if your final property price is on the lower end, you’ll be charged a smaller fixed fee. However, if your property is on the higher end, you can expect to pay a larger fixed fee.
How do buyer’s agents charge their clients?
Usually, buyer’s agents offer a variety of options for their clients to pay the required fees. Some offer instalments, some take a commission, while others charge upfront.
If your buyer’s agent charges instalments, you’ll usually pay a fortnightly or monthly fee to cover the total cost of their expertise. If your buyer’s agent takes a commission, this usually won’t be charged until after the property closes since the fee is based on that final purchase price. If your buyer’s agent charges an upfront fee, you’ll know what you’re paying from the get-go.
Here at Wealth 360°, we charge our fees upfront. Why? Because we don’t want our clients to deal with any curveballs or hidden fees that can otherwise be avoided. By knowing our fees upfront, our clients can budget properly and trust our expertise.
Are buyer’s agent fees negotiable?
Sometimes, but not often. After all, if you negotiate and things don’t go your way, your buyer’s agent can always open up the floor to re-negotiate. You could end up in a never-ending cycle without actually getting to the real negotiations for your future property.
Buying property often takes longer and can become more expensive than you think, especially if you’ve never done it before. Working with a buyer’s agent can not only help you save money but here at Wealth 360°, we’ve been known to even make money for our clients in property negotiations.
At Wealth 360°, we offer flat fees for most residential and investment property stock. You’ll know upfront how much you’re spending to work with us. And while our fees are non-negotiable, we hope you can see that our small cut is well worth it overall.
All in all, it’s best to find a buyer’s agent you can trust who has a solid track record and shares your values. No matter how they structure their fees or how they charge their clients, figuring out what you need from a buyer’s agent and which one is right for you is going to help you make the best decision possible.
Interested in our services at Wealth 360°? Contact us today and allow us to set up a consultation!