A buyer’s agent can help you secure a better property, a better price, or both, provided you engage the right one. Like all industry’s, fees for hiring professional services (buyers agents) can vary depending on the agents experience and the level of service you choose.
Many buyer’s agents have two main fee structures, fixed fees or a percentage of the purchase price.
Percentage Of Purchase Price
This fee structure can create an incentive to over spend on budget. As a general guide buyer’s agents full service fees work out to typically be 1.5% of the purchase price. Remember you’re paying an exclusive buyer’s agent to search specifically for you and to be completely independent and impartial, putting in place a pay to spend more structure can work against the buyer.
Agreed Fixed Fee
A set or fixed fee removes the risk of creating a ‘pay to spend more structure.’ For example if you’re looking at spending $700K they may fix the fee regardless of whether the property costs $700K or $800K.
Some other simple points to look out for
- No fees should be payable until you buy a property.
- The fee should only be paid two weeks after the sale.
- Signing fees should be no more than $1000.
More information on buyer’s agent fees.