How buyers agent fees are determined

How are buyers agent fees usually determined?

Without a doubt an experienced buyers agent who genuinely cares is a valuable asset to you when you are looking to buy your next house in the Melbourne property market, because they can help you find the right property to suit your individual goal(s) and give you the strategy you need so you can position yourself to secure you’re your buyers agent can also support and guide you don’t get too emotional and end up making the wrong decision or paying too much.

If you are going to be using a buyers agent to help you secure your next property, then chances are you want to know the options you have in terms of making your payment.

Buyers agent fees are typically either fixed-price or percentage-based.

An upfront engagement fee is typically payable when you engage a buyers agent. With some buyers advocates, this payment is non-refundable and paid before any work is carried out.

In our Murphy Jacobs Advocacy business, our engagement fee is included in our fixed fee so as a buyer you will know what you are required to invest.

Some advocacy firms do not have the same approach though and will charge the engagement fee plus a separate fee for service.

SUCCESS FEE OR PURCHASE FEE

The success fee or purchase fee is the part of the fee that is payable once the buyers advocate has successfully negotiated your property and you have an unconditional contract for your property.

FIXED FEE OR PERCENTAGE OF THE PROPERTY PRICE

Fixed fees range from $7,700-$20,000 for a full-service property search. A typical % used by buyers agents is 1.5% to 2% + GST.

WHO PAYS THE BUYERS AGENTS FEE?

As a client you should be paying the fee directly to your buyers advocate. If they are offering a free service you are not working with a truly independent buyers agent. Let’s face it nobody works for free so they will be receiving payment from somewhere and it could be in a dodgy manner which you should avoid at all costs!

WHY OUR EXPERIENCE IS YOUR PEACE OF MIND

By engaging a licensed and experienced buyers agent you will:

·       Enjoy complete support and service

·       Avoid poor asset selection

·       Access hidden off-market opportunities

·       Ensure you spend time pursuing the right properties

·       Sail smoothly through the process either avoiding problems or resolving them to protect you and your interests

As you can see, the buyers agent fees will reflect their experience. You must choose a buyers agent you feel confident in, respect and trust because (insert why).

If you would like to arrange a consultation where we can discuss your buying strategy, and I can help you search for and secure the right property which will help you grow your property portfolio whilst minimising the stress, then you can do so here: https://murphyjacobs.com.au/contact/

I would love to help you secure your next home, whether it is your principal place of residence or an investment property.