A buyer’s agent offers a wide range of services to streamline the buying process and help you find the perfect property.
However, one of the key considerations when deciding to work with a buyer’s agent in Melbourne is the fee they charge.
So, how much do they charge?
The cost of a buyer’s advocacy in Melbourne can vary depending on several factors such as the level of service provided, the reputation of the agent, and the property’s value.
Let’s look at what you can expect a buyer’s agent to charge in Melbourne based on recent trends.
Buyer’s agent fees: What to expect
Typically, a buyer’s agent in Melbourne charges a fee based on either a percentage of the purchase price of the property or a flat fee.
The percentage-based fee can range from 2% to 3% of the purchase price, while a flat fee can range from $10,000 to $20,000 or more, depending on the level of service provided.
Fixed fee:
Most buyer’s agents in Melbourne charge a $10,000 – $20,000 flat fee for investment properties under $1,000,000.
The best buyer’s agents Melbourne residents rely on offer comprehensive services that include:
- Property research
- Price analysis
- Assessment reports
- Negotiation
- Off-market property sourcing
- Unlimited inspection
The flat fee can range from $10,000 to $20,000 or more, depending on the complexity of the property search and the level of service provided by the agent.
This model is often preferred by clients who want more certainty in their budgeting and who are looking for transparency in the cost of the service.
For standalone services such as negotiation only or auction bidding, the charges can be between $750 and $1600.
Percentage-based fee:
Under this model, the buyer’s agent charges a percentage of the purchase price of the property as their fee.
While the commissions vary between agents, you can expect to pay between 2% to 3% of the purchase price. This model is normally used for investment properties over $1,000,000.
For example, if the purchase price of the property is $1,100,000 and the agent’s fee is 2%, then the buyer’s agent will charge $21,000 for their services.
Here is an estimate of the commission charged by buyer’s agents in Melbourne based on property prices.
Property Price
$1,450,000
$1,500,000
$1,750,000
$1,850,000
2% + GST
$29,000
$30,000
$35,000
$37,000
3% + GST
$43,500
$45,000
$52,500
$55,500
How to find the most affordable buyer’s agent in Melbourne
It’s important to note that the cost of a buyer’s agent may be negotiable. Some of the most reputed buyer’s agents Melbourne homebuyers rely on may offer a reduced fee or a rebate if they are able to negotiate a lower purchase price for the property.
If you’re considering hiring a buyer’s agent in Melbourne, follow these steps:
- Start by doing some research online and create a list of several buyer’s agents in Melbourne. You can check their websites, reviews, and social media to get an idea of their services and pricing.
- Check their fees: Once you have a list of potential buyer’s agents, check their pricing models and compare their fees. Look for agents who offer competitive rates and transparency in their pricing.
- Compare quotes: Once you receive quotes from different agents, compare them carefully. Look for the agent who offers the most affordable rate without compromising on the quality of their service.
- Consider experience and reputation: While cost is important, it’s also important to consider the experience and reputation of the buyer’s agent. A more experienced and reputable agent may be worth paying a higher fee, as they may be able to negotiate a better deal on the property and provide better service.
- Read reviews and ask for referrals: Before making a final decision, read online reviews of the agent and ask for referrals from past clients. This can give you an idea of the agent’s track record and level of customer satisfaction.
Some agents may also offer additional services for an extra fee, such as property inspections or due diligence on the property. It’s always a good idea to discuss the pricing models and any additional fees with your buyer’s agent before engaging their services.
This will ensure you have a clear understanding of the costs involved.
