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How much does a buyers agent charge?

Discussion in 'The Buying & Selling Process' started by Whitecat, 25th Dec, 2015.

  1. Whitecat

    Whitecat Well-Known Member

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    Not looking to use one now but at some point I may for an interstate purchase.
    Given all the complexities a house can have that can be difficult to determine using the net it seems it could be helpful.
     
  2. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    Depends on the requirements, location and logistics

    Anywhere from 7500 to 15000 would be typical
     
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  3. Whitecat

    Whitecat Well-Known Member

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    A little more than I expected.
    I would be interested in people's experiences
     
  4. JacM

    JacM VIC Buyer's Agent Business Member

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    Hi @Whitecat

    As mentioned it varies depending on the agent in question. It might be a flat rate fee, or calculated as a percentage of purchase price.

    If you are shopping in a pricey suburb, expect the rate to be higher.

    If you want substantial involvement and consultation throughout the process, again expect the rate to be higher.

    In order to ensure a suitable quality of service, a BA will often work only with a certain number of clients at one time and as such waiting lists are not unusual.
     
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  5. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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  6. Whitecat

    Whitecat Well-Known Member

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    What are the advantages and disadvantages
     
  7. GoOnAndTell

    GoOnAndTell Well-Known Member

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    never used one but my understanding is.

    Advantages
    They insulate your emotions and should be more impartial
    It would be assumed they know the market well and you are paying for the others houses they have looked at to offer an opinion on what they present
    You save time which you cant claim on tax
    their fee would likely be claimable
    Should be trained negotiators

    Disadvantages
    They cost you money
    They bring there own interests to the table (e.g. they make more profit if they can close you quickly as they have spent less time for the same cash)
    You are not learning the skills or market research for the next one.
     
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  8. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    Don't forget, a good BA should also have a large network of agents and hear about a lot of deals before the public does. Their ability to security property off-market is one of the biggest advantages. :)
     
  9. York

    York Finance Broker Business Member

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    Depends on where and what you need. If by any chance you're looking into South Brisbane, there is a BA who charges less than the above quoted prices. PM me for details.
     
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  10. Leo2413

    Leo2413 Well-Known Member Premium Member

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    I would of thought this is a given as part of the service. If I have to pay extra for this I would be running away from that BA.
     
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  11. JacM

    JacM VIC Buyer's Agent Business Member

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    @Leo2413 involvement is a very important part of BA process. It is essential that the BA understands what the client seeks in a property, and it is essential for the client to feel that the BA understands what he/she seeks.

    However like any other service offering, a BA needs to set boundaries. Substantial discussion and parameter setting needs to take place at the commencement of the search. If however the client requests to be notified about each property that the BA ponders on any level, regardless of whether the property passes muster in the BA's mind, then this all takes time. This is where the BA would need to decide to offer such a level of service and tailor the fee accordingly, or indicate that this is not within the parameters of the BA's service offering.

    Quite often BAs will have a limit on how many properties a client can reject that are presented. This is a boundary that has been set to keep the process focussed on an outcome.

    Quite often a prospective client will start out with the desire to be notified about each thought that passes through a BA's mind, and a full report on each property that hits the market, but quickly conclude that perhaps the fee that would need to be charged would be both prohibitive and non-sensible given the price-tag of the property. Generally people come to a decision in their minds as to what is an affordable and sensible service level for them to match the price-tag of the property they are purchasing. Every now and then however there is someone that does want a different service level which is fine. The BA then either offers to provide that service or indicates that they do not have the capacity to do so.

    Hope that makes sense. :)
     
    Last edited: 4th Jan, 2016
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