If this is your first time trying the services of a buyers agent, you would likely have many questions in your mind. The one prominent question that many first-timers would ask is how much a buyers agent or a buyers agency in Brisbane costs. If this is something you also have in your mind, then you have come to the right place. The article answers all the critical questions regarding the costs and fees of a buyers agent. It details what factors determine the cost, different pricing models, and the fees of the agents in major cities like Brisbane.
Let’s dive in!
What Factors Determine The Cost Of A Buyers Agent?
Out of the many factors, the one that is considered the most important in calculating the fees of a Brisbane buyers agent is time. An agent typically provides three kinds of services – full service, sales negotiations, and auction bidding. The full service involves an agent scouting properties, evaluating them, and negotiating the price. They do everything from scouting to settling the deal. Since they do everything, it takes more time to complete a deal and which is why this service is pricey.
Here is a detailed explanation of the three common pricing models that an agent typically uses.
3 Common Pricing Models Used By A Buyers Agent
A buyers agent in Australia fixes prices based on one of the following pricing models.
- Fixed Price
- Percentage Of Property Price
- Tiered Fixed Price
Fixed Price Model
In the fixed price model, you have to pay a fixed/flat fee to the agent. Depending on the service (full, sales negotiation or auction bidding), the agent fixes the flat rate price. For example, for full service, the fixed price can be anywhere from a few thousand Australian dollars to more than 10,000 dollars. In this model, the agent sets the cost of the services beforehand and the fee doesn’t change based on the purchase price of the property.
Percentage Of Property Price
If the buyers agent opts for this model, the amount the agent charges depends on the final purchase price of the property. In Australia, the agents typically charge from 1% to 3% of the final purchase price of the property depending on the service they provide. For example, if the final purchase price is between $450,000 and $500,000, then 1% of this price is between $4,500 and $5000 plus the GST. The only drawback with this model is you will not know the fees until the deal is made.
Tiered Fixed Price
In this price model, the agents charge a fixed price depending on the price bracket in which the property is listed. For example, if the property is in the price bracket of $250,000 and below $490,000, the price the agent charges is around $5,900 to $6000. If it is more than $500,000 and less than $800,000, the fees would be around $9,000.
Fees Of Buyers Agent In Brisbane
In major cities like Sydney, Melbourne, and Brisbane, the costs are typically high. Since Sydney has the most expensive property market in Australia, the buyers agent in Sydney charges more.
When it comes to Brisbane, the agents of Brisbane follow several pricing models. Among them, the “Percentage of property price” model is the most commonly applied model. They charge from 1 to 3% of the final price of the property. And when it comes to a flat fee, they charge around $5000 to $16,000.
Besides this, if you want their services for only bidding, then you can expect anywhere around $500 to $1000.
Fees Of Buyers Agent In Perth
Perth is a major city in Australia. In such a city, you can expect the agents to charge from 1.8 to 2.5 percent of the final purchase price. Agents who charge a fixed price can charge around $9000.
Fees Of Buyers Agent In Adelaide
In Adelaide, the agent’s percentage purchase price rate is between 1.5% and 2.4%. Agents who charge a fixed price, charge around $10,000.
Is Buyers Agent Fee Tax Deductible?
If you’re taking the help of an agent to invest in a property, then the agent’s fee is tax-deductible. On the other hand, if you use an agent’s services to purchase a house, then taxes don’t apply to the agent’s fees.
Buyers Agents typically use three pricing models which are fixed price, percentage of the final purchase price, and tiered fixed price. Based on these models and the services they are hired for, they fix their prices. In a city like Brisbane, they use multiple pricing models but the one that is most used is the percentage purchase price model. Agents charge from 1 to 2.7 percent of the final price of the property which is reasonable compared to major cities like Melbourne and Sydney.