How much does it generally cost to hire a buyer’s agent to find your dream property?
An excellent buyer’s agent can be a weapon in Australia’s ever increasing competitive property market, especially in Batemans Bay. The right agent will work with you to find your dream home or investment property at the best price (sometimes off-market) and give you a competitive edge to help you beat other buyers to the dotted line. Look here to know where are the buyers advocates in Batemans Bay.
This weapon will come at a cost, and many people are not familiar with how an agent works, here are some basic guidelines:
Fixed fee or the commission model
Australian buyer’s agents usually operate on one of two fee structures: a fixed fee or a commission model.
An agent charging a fixed fee for their services will vary depending on the level of service you request from the agent. Such things as a full search, negotiating a sale or auction bidding only must be taken into consideration. Some agents will also have a tiered fee structure based on the purchase price of the property in question.
Generalising, flat fees for buyer’s agents can range from 2-3 thousand dollars, rising to $15,000 for some homes; naturally, premium priced properties where difficult negotiations may have to be undertaken can cost more. The fee itself can be lower if you are looking for a basic level of service from your agent, such as just an auction bid on your behalf.
On the commission side, they calculate their fee as a percentage of the purchase price of the property. Again the size of this commission can depend on the price bracket the property comes into, and the service you are looking for from the agent. In this arena, you can look for commissions to range from 1% to 3% of the purchase price.
When looking for a buyer’s agent, you always can negotiate room to negotiate. As a buyer’s agent fees are not regulated in any state in Australia, so you can always ask for a good deal. Remember, when the agent does a good deal for you, you'll be sure to recommend him or her to your friends or colleagues looking to do the same, word of mouth is always a strong marketing tool for agents.