Commission or Fixed Rate? Which is best.

Fees for hiring buyer’s agents vary depending on the level of service you choose, the scope of job you require and their expertise. 

When hiring a Buyer’s agent,  choose an advocate that offers a fixed rate so there’s no monetary incentive to spend more.  If your budget is $400,000 or $5,000,000, the fees should be fixed. In most cases, the process and due diligence conducted to purchase a property doesn’t change regardless of the property value. 

A fixed rate that covers our clients until a property is purchased regardless of how many auctions or private negotiations it takes. The responsibility is on our buyers agents to provide a high quality service that is paid on performance. Our clients say ‘we make buying easy.’


What is wrong with a commission model? 

Other agents charge a commission for their services, calculating their fee as a percentage of the purchase price of your property.

The problem with this model is the size of this commission could range vastly depending on the price your property falls into, and also according to the level of service you select. You would have to consider why a buyers agent would negotiate a great deal if there financially incentivised to spend more money.


Why We Offer A Fixed Rate.

Wise real estate advice offers a fixed fee regardless of the clients price brackets, degree of difficulty or search criteria. Our service includes: property search, inspection, auction bidding or private negotiation. We will conduct the due-diligence on the property then negotiate via private treaty or auction until a property is purchased. Importantly, the fee remains the same regardless of how many negotiations or auctions we attend.

Our clients have a choice of two service plans listed below. 


Plan 1: Fully serviced buyers agent.

We offer a fixed fee regardless of the clients price brackets, degree of difficulty or search criteria. The main feature of this plan is our expert buyers agents search, recommend inspect listings based on your taylored buying criteria. We filter properties that make average long term investments maximising your long term returns. 

Once we find a property to purchase, we will conduct detailed due-diligence on the property. This includes a physical property inspection, you will receive a 10 minute video of the inspection outlining maintenance and features of the listing. Market appraisal and a out lined negotiation plan.

The final step is the negotiation via private treaty or auction, until a property is purchased. The fee remains the same regardless of how many negotiations or auctions we attend.

This plan allows you to work on multiple properties at one time, across Melbourne. 


Plan 2: Negotiate only plan. 

Our appraisal and negotiation service is ideal for the buyer whom enjoys the search but want to bring in the experts to get the true market value of the property and know that they can secure it at the right price through expert negotiation.

This plan includes a physical property inspection, you will receive a 10 minute video of the inspection outlining maintenance and features of the listing. Market appraisal and a out lined negotiation plan.

The final step is the negotiation via private treaty or auction, until a property is purchased. The fee remains the same regardless of how many negotiations or auctions we attend.

This plan allows you to work on a single properties per negotiation across Melbourne. 

If the client conducts a property search & requires a buyers agent for negotiating via and auction or private treaty, we charge a flat fee of $4,400. Inc GST, fixed rate until a property is purchased .


How Much Do You Pay Upfront To Hire A Buyer Agent? 

Most buyer’s agents will ask for a proportion of their total fee to be paid upon signing the contract. This initial fee can range from $1,000 to 50% of the total fee payable. Often that fee is non-refundable and sometimes a portion is refundable if the purchase does not proceed. 

 At WREA, our engagement fee is approximately 30% upfront, the balance is payable only on successful purchase. Hence, if you don’t purchase, you don’t pay. This makes sure your buyers agent is always has your best interest in mind. 


Summary

The world of hiring buyers agents can be a tricky with unforeseen cost to the client. Below is a quick checklist of what to look out for when it comes to paying a buyers advocate for there service. 

  • Fixed fees, until a property is purchased.
  • No commissions.
  • Only use a fully licensed buyers agent, click here for more info on buyers agent qualifications. 
  • Make sure your buyers advocate is a fully licensed real estate agent.
  • Let the above be outlined in your written agreement / contract.

     

At Wise Real Estate Advice, we ensure all boxes are ticked and that sincere care is taken when providing a buyer with the wise advice and action required throughout the buying process. To speak to one of our friendly buyer’s agents click here to fill out an enquiry form or just simply call us on 1300 00 WISE. 

Speak With One Of Our Expert Buyers Agents. Click here to book your complimentary, no-obligation phone call.

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