The fees and commissions charged by a buyers agent Sydney depends on a variety of factors. Some of the main factors include their experience, negotiation skills, relationships with other agents, and so on. While some agents levy a fixed flat fee, others charge a percentage of the property price. Either way, you could end up spending anything between a few thousand dollars to $15,000 or more, making it crucial to find the right buyers agency Australia.
How much do buyers agents charge in Sydney?
If you want a buyers agent to merely negotiate with sellers, or attend an auction to bid on a property, the fees may be less than $1,000. However, if you want the agent to look for properties, shortlist a few, and take care of the entire purchase process for you, be prepared to bring out the big bucks.
The fixed fee charged by a buyers agent Sydney will range from $500 to $15,000. The fees under the commission model will depend on the purchase price of the property. Most agents charge between 1% to 3% of the property price. Again, the fees could range from a few hundred dollars to upwards of $30,000 for premium properties.
Which is the best fee structure – fixed fee or commission?
The level of services you require will have a telling effect on the fees charged by a buyers agent Sydney. While the fixed fee pricing method works for some, the commission model is ideal for others.
For instance, let’s say you want a full service which includes everything from sourcing properties and completing the purchase process. In this case, you can compare the fees charged by different agents under different models to see what works cheaper. However, if you are looking for specific services like finding off-market properties or negotiating with seller, a fixed fee would be more affordable.
How to get the best deal for buyers agent fees?
When looking around for a buyers agency or buyers agent Sydney, you can always negotiate their fees. Since agent fees aren’t regulated in NSW or any other state in Australia for that matter, you can always request them for a lower price. Here are a few tips to consider when hiring a buyers agent:
1) Do your homework
It is crucial to prepare yourself before meeting with a buyers agent. Do some research and identify the average fees charged by buyers agents in Sydney. Once you have the data, you can use it as a tool to negotiate a lower fee.
2) Be reasonable
While it is important to negotiate the fees of a buyers agent Sydney, it is just as important to be reasonable. Attempting to lowball them will likely result in them just walking away from the table. It is important to understand that buyers agents don’t come cheap, especially not the good ones. Make sure you try to work out a deal that will not only benefit you, but will not be insulting for the agent either.
3) Consider different options
Apart from meeting a few agents and comparing their fee structures, you could also consider lowering the level of service you require. For instance, employing an agent to only negotiate the purchase will be a lot cheaper than the full service. If you can complete certain tasks on your own, you can save a lot of money in agent fees. However, remember that the entire purchase process can be highly complex and tiring. Unless you are ready to go through the tedious paperwork and impromptu running around, a buyers agent Sydney is your best bet in the long run.
Is it worth it to get a buyers agent Sydney?
Doing your homework and meeting with many agents can help you find the right agent, even if their fees seem too high. For instance, let’s compare two people who wish to purchase a similar property in Sydney. Let’s say Jim and Shelly, both residents of Melbourne, have a budget of $600,000 each. Shelly hires a buyers agent Sydney for a full service, while Jim decides to complete the process by himself.
If this case, Shelly will complete the purchase of the property in 2-3 weeks, while Jim may take 2-3 months. The property price may be, let’s say, $480,000 for Shelly, whose buyers agent did a fine job in negotiations. Jim may be paying $520,000 or more for the same property. Jim may have also spend around $2,000 on travelling up and down, while Shelly had to travel just once to confirm the purchase.
Even if Shelly spent $10,000 to $15,000 on agent fees, she ends up saving a lot more than Jim. In conclusion, the total expenses you incur on buying a house will be significantly less with an experienced buyers agent Sydney.