I met with a BA last week. I had two key questions, namely: 1. What's the benefit of using a BA? 2. What is your fee structure? To Q1, the answer was better local knowledge, better relationship with REA's, better negotiation skills resulting in a lower purchase price, ... No surprises there although I challenged the better negotiation skills . To Q2, the answer was an Engagement Fee + a Success Fee, both totalling 2% of the purchase price. This answer really surprised me. The higher the purchase price, the higher the BA's fee. This conflicted with the Q1 answer about getting me a lower price. I challenged the BA on this and asked them to re-think their fee as it meant that our objectives are not aligned. That is, getting me the best property for the lowest price. I asked them to go away and think about their fee structure. They came back with a 5% reduction in total fees. Geez!!!! I was thinking something along the lines of: Engagement Fee + Success Fee + Purchase Price Reduction Bonus where the Engagement Fee + Success Fee would cover the BA's costs, expected profit, etc and the Purchase Price Reduction Bonus would be BA's reward/bonus for getting me a better price. As an example, say for a $1M property purchase, under the existing model, Engagement Fee might be $4,000 and the Success Fee might be $16,000 giving a total fee of $20,000 or 2%. My thoughts would be, for a $1M property purchase, Engagement Fee might be $4,000 (same as existing model) and the Success Fee might be $14,000 (less than existing model). The Purchase Price Reduction Bonus could be calculated along the following lines: a. If the advertised price was $1M, then there was no price reduction. Hence, no Bonus, total fees paid $18,000. In this case, the BA gets less than existing model, like a 'penalty' for not getting a better price for the buyer. b. If the advertised price was $1.05M, then there was $50,000 or 4.76% price reduction. The BA gets 4.76% of price reduction as a Bonus. Hence, Bonus is $2,380 and total fees paid $20,380. In this case, the BA gets roughly the same as the existing model, because 'anyone should be able to get a 5% price reduction' . c. If the advertised price was $1.1M, then there was $100,000 or 9.1% price reduction. The BA gets 9.1% of price reduction as a Bonus. Hence, Bonus is $9,100 and total fees paid $27,100. In this way, the Buyer's and the BA's objectives are aligned. That is, get the best property at the best price for the buyer. I would interested in anyone's thoughts on my suggested fee structure (please don't turn this thread into a "BA bashing" thread). Once I have the feedback, I am considering going back to this BA to see if they would consider it. Edit made 4/2/16 at 3:25pm (EDST): Based on constructive posts from this thread, for future posts change 'advertised price' to 'independent valuation' in items a, b and c above.