Is 12k an average buyers agent fee?

Discussion in 'The Buying & Selling Process' started by Jason Micallef, 16th Jul, 2021.

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  1. Jason Micallef

    Jason Micallef Member

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    Found a BA that i really like and am very close to committing with him.
    He is charging 12k in total for the service
    Does this sound about standard? I think it measures up to be average
     
    Jason Micallef, 16th Jul, 2021
    #1
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  2. MTR

    MTR Well-Known Member

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    Cheap
     
    MTR, 16th Jul, 2021
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  3. Shazz@

    Shazz@ Well-Known Member

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    Standard rate is 2% of the purchase price.
     
    Shazz@, 16th Jul, 2021
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  4. D.T.

    D.T. Specialist Property Manager Business Member

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    Depends on which city / town and what price range you're looking at. Eg that might be a little high for Adelaide but a little low for Sydney.
     
    D.T., 16th Jul, 2021
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  5. Gen-Y

    Gen-Y Well-Known Member

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    Depends... If you are buying $1m house. Yes cheap.1.2%
    If you are buying $300k house. Not so cheap 4%
     
    Gen-Y, 16th Jul, 2021
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  6. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    Of the buyers agents that I deal with reguarly, I'd say $12k is below average.

    There are BAs charging significantly less, but I wouldn't recommend most of these.
     
    Peter_Tersteeg, 16th Jul, 2021
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  7. MTR

    MTR Well-Known Member

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    Fair enough
     
    MTR, 16th Jul, 2021
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  8. Branden

    Branden Well-Known Member Business Member

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    As others have mentioned, the purchase price of a property is usually what dictates where the BA's fee would fall on the spectrum of cheap to expensive. From what I have seen most BA's charge around that 12k figure for properties under 500k. Anything more than this would likely be higher, 2% would be a rough guide.

    I would be more concerned with what service I am being provided? If it is slightly more expensive but a better service you could rationalise spending more. Though, more expensive doesn't always translate to better quality.
     
    Branden, 21st Jul, 2021
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  9. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    Be careful you do not make assumptions on what the actual value v perceived value of the service.

    Are they prepared to do a feasibility report for you, as an example?
     
    Colin Rice, 21st Jul, 2021
    #9