How much does it cost to hire a buyer’s agent | advocates?
How To Find A Top Performing Buyers Agent | Advocates
In 2016, there were only approximately 300 buyer agents and advocates in Australia. Fast-forward to 2024, and post-COVID, the rise of the Buyer Agent Industry has been significant. Today, there are approximately 1,800 in operation across all of the states.
We all offer very different levels of service, experience and results.
In my personal opinion, if you are looking to engage a professional buyer’s agent or buyer’s advocate to assist with one of the most significant financial decisions of your life, you should only employ a buyer agent who is a specialist in the area and type of property that you’re looking to buy.
How Much Does A Buyer’s Agent Cost?
Around Australia, the majority of buyer agents and buyer advocates in our industry charge in two common ways. Below are examples based on your purchase price.
Percentage Based Fees
As mentioned, this is one of the two common ways buyer agents charge. The fee is calculated as a percentage of the final purchase price of the property. The exact percentage can vary between different buyer agents and may also depend on factors such as the property type, its location, and the complexity of the search.
For example, a buyer agent might charge 2% of the purchase price. So, if they help you buy a house for $800,000, their fee would be $16,000.
It’s important to note a few things about percentage-based fees:
Some agents may use a tiered percentage structure, where the percentage decreases as the purchase price increases.
The fee is usually agreed upon in writing before the agent begins working for you.
Fixed Fees
The other common fee structure is a fixed fee. In this case, the buyer agent charges a set amount for their services, regardless of the property’s final purchase price. This can provide more certainty about the total cost involved.
For example, a buyer agent might charge a flat fee of $10,000 for a standard property search and negotiation service.
Fixed fees can also vary depending on the services included. Some agents may offer different fixed-fee packages for different levels of service. For instance, a basic package might include property sourcing and negotiation, while a more comprehensive package could also include due diligence, contract review, and auction bidding.
When considering a fixed fee, be sure to clarify exactly what services are covered.
Site Analysis and Strategic Planning: Contextual Considerations
Where land acquisition is involved, the architect’s expertise in site analysis is invaluable:
- Contextual Evaluation: Assessment of location, accessibility to essential infrastructure, and surrounding environmental factors.
- Geotechnical Assessment: Consideration of soil conditions and site topography to inform foundation design and construction methodologies.
- Regulatory Due Diligence: Evaluation of applicable zoning regulations, building bylaws, and potential development constraints.
Most common services a buyer’s agent or advocate will offer their clients
- This is a tailored end-to-end service where you sit back and work in collaboration. We do all of the heavy lifting for you so you can focus on what is most important to you, whether that be your family, your business, or your lifestyle. This service at Industry Insider is our most popular as it also offers access to a range of properties not advertised or listed on real estate websites. This involves clarifying the best asset based on your borrowing capacity and family’s requirements. We will locate, evaluate, complete the due diligence and negotiate the best terms and purchase price on your behalf.
- A second service many buyer agents offer is a negotiate-only service, where the buyer will assist with sourcing properties. Then, the buyer’s agent/advocate will use their years of negotiating skills and extensive network to produce a better result than you could if you were trying to buy the property yourself.
Be mindful that some buyer agents help 20+ clients a month. There can be a cross-over of briefs and price points, which can often lead to a conflict of interest. For example, which client is offered which property when you have two or more clients with similar budgets who wish to secure an investment property?
Are Buyer’s Agents | Advocates Worth It?
In the Buyer Agent Industry, you must understand the value that the buyer agent you’re considering hiring brings to the table. They should have refined their processes and negotiating skills over years of working in the industry. A top-performing buyer agent will say no to as many clients as they say yes to. This is because they understand they are specialists and value their time and experience. I often ask my potential clients, “If I can’t negotiate a fair fee for my services, how can you expect me to negotiate the best result for you when negotiating with the seller’s agent or auctioneer?
If you hire an experienced buyer’s agent, they will save you time, money, and stress, and the value they provide should cover their fees. At Industry Insider, more than 80% of our business is referral. This is an excellent sign as our clients keep returning and telling their friends and family about their experience.
Asset Plus is independent & committed to helping buyers & sellers achieve their desired outcomes. Our experienced buyer agents or advocates in Gold Coast will guide, execute, and deliver the best possible results to our clients.
Our team will help you save time and share our industry knowledge and expertise to ensure you make a wise, well-informed decision.