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How much do buyer’s agents
charge in 2024?
Explore the various factors that influence buyer’s agent fees.
How much do buyer’s agents charge their clients: Why it matters
If you’re new to the real estate market, engaging a commercial property buyer’s agent can be a wise decision. Each buyer’s agent has their own fee structure, and it’s crucial to hire an agent who can make your investment worthwhile in terms of the fees you pay.
It’s important to consider how the fees you pay to the buyer’s agent can ensure long-term success and help increase your earnings over time. It’s also worth noting that if a buyer’s agent isn’t able to reduce your property purchasing costs, then their fees may be set too high. However, if you can find a quality agent who can save you money, the fees they charge are justifiable.
In 2024, buyer’s agents in Australia typically charge their clients based on one of three pricing models: fixed fee, tiered fixed fee, and a percentage of the property purchase price.
Under the fixed fee structure, buyer’s agents pre-set the cost of their services, and the fee doesn’t change based on the purchase price. The fees will vary depending on the services provided.
For the tiered fixed fee pricing model, the buyer’s agent sets a fee for each predetermined property price bracket. For instance, if the property price ranges from A$750,000 - A$1,000,000, the fixed buyer’s agent fee, inclusive of GST, will be A$12,000.
If a buyer’s agent uses the percentage pricing model, they typically charge clients between 1% and 3% of the total property purchase price. In Sydney, buyer’s agent fees typically range from A$8,000 to A$21,000, with A$14,500 being the average fee.
So, how much do buyer’s agents charge? While the fees may seem high at first glance, the return on investment that you can achieve can far outweigh the money you invest in their services.
How much do buyer’s agents charge their clients: What factors influence their fees?
Experience and expertise
The level of experience and expertise of the commercial property buyer’s agent often correlates with their fees. Agents with a proven track record and specialised knowledge in commercial real estate may command higher fees due to the perceived value of their expertise.
Negotiation skills
A buyer’s agent’s reputation for strong negotiation skills may be reflected in their fees. If the agent has a track record of securing favourable deals for clients, they may justify higher fees based on their ability to optimise the financial aspects of a transaction.
They conduct due diligence and provide ongoing support
The complexity of the commercial property transaction, including legal intricacies, financing challenges, and unique property characteristics, can impact the amount charged by the buyer’s agent. More complex transactions may require additional effort, time, and expertise.
They offer comprehensive services
The location of the commercial property and the buyer’s agent’s base of operations can impact fees. Agents in high-cost urban areas may charge more than those in less expensive regions, considering variations in the cost of living, market demand, and market dynamics.
Why work with Unikorn
At Unikorn, we understand that new investors in the commercial property market may find it challenging to find, negotiate, and close deals.
That’s why our team of real estate professionals is here to solve every doubt you have and guide you through the process of acquiring your first property and building a cashflow-positive portfolio, allowing you to enjoy positive cashflow from day one!
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Success stories
Regina Soeryanto
Architect
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Montessori Teacher
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Business Owner
Want to work with a commercial property’s buyer’s agent? Our experts can help you with price quotations.
FAQs
Yes, buyer’s agent fees are often negotiable. Clients should openly discuss fees with their agent and explore whether there is room for negotiation, especially if the transaction involves unique circumstances or multiple properties.
The services offered by buyer’s agents may vary but typically include property search, market analysis, negotiation, due diligence, and transaction coordination.
Helen Tarrant, a property expert with more than 10 years of experience will show you the ropes to making educated decisions in commercial property investing.
Book a strategy session with us, today! Click here