Buyers Agent Fees Sydney (2026 Expanded Guide)

Quick answer: Buyers agent fees in Sydney typically range from 0.5% to 2.5% of the purchase price depending on the service level, complexity of brief, and price point. It is also common to find that inexperienced buyers agents with less than three years experience or fewer than fifty properties purchased will entice clients with a discounted fee, a retainer waiver, or both.

Retainers generally range between one-tenth and half of the total fee. Most full-service engagements fall in the 1%–2% range. Unicorn Buyers Agents offers fixed fees or capped percentage structures quoted upfront — you know exactly what you'll pay before work begins.

To get a tailored fee quote, complete our short homebuyer form or investor form — we respond within 24 hours.

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Table of Contents

How Much Do Buyers Agents Charge in Sydney?

Buyers agent fees in Sydney sit within a fairly wide range because the fee reflects the scope and complexity of the work — not just a flat rate. A highly specific brief that requires six months of intensive searching, dozens of physical inspections, and multiple failed negotiations costs more to service than a brief that results in a clean off-market purchase within three weeks.

 

As a guide, here is the broad fee landscape in Sydney in 2026:

Service type Typical fee range What it covers
Full search (Done For You) 1.5%–2.5% of purchase price Brief to settlement — sourcing, inspections, appraisal, due diligence, negotiation
Appraise & negotiate 0.5%–1.5% or fixed fee Price appraisal and negotiation on a property you've already identified
Auction bidding Fixed fee (typically $1,500–$3,500) Pre-auction strategy and bidding on the day
Strategy session Fixed fee One-on-one consultation to define brief, target suburbs, and approach

On a $2 million Sydney property, a full-service engagement at 1.5%–2% means a fee of $30,000–$40,000. That figure often sounds large in isolation. In context — which this guide explains — it rarely is.

Fee Models Explained: Fixed, Percentage, and Capped

There are three common fee structures used by buyers agents in Australia. Understanding them matters because the structure affects the agent’s incentives — and therefore, potentially, their behaviour.

Fixed Fee

A set amount agreed upfront, regardless of the final purchase price. The buyers agent earns the same whether you pay $1.8 million or $2.2 million for the property. This fully aligns the agent's interest with getting you the best price — there is no financial benefit to them in pushing you higher, and the fee is a reflection of the workload generally required for a purchase at that price point.

Percentage Fee (Uncapped)

A percentage of the final purchase price, with no ceiling. The more you pay, the more the agent earns. This structure mirrors how selling agents are paid and creates a potential misalignment: the agent earns more when you spend more. Most reputable buyers agents do not use uncapped percentage structures, but some do. Ask directly.

Capped Percentage

A percentage of the purchase price with a maximum fee agreed upfront. If the property sells for less than expected, your fee may be lower. If it sells above, your fee is protected by the cap. This is a hybrid structure that offers flexibility while giving the buyer cost certainty at the top end. This is the structure Unicorn Buyers Agents uses — fixed fee, or a capped percentage, depending on what suits your brief.

On a $2 million Sydney property, a full-service engagement at 1.5%–2% means a fee of $30,000–$40,000. That figure often sounds large in isolation. In context — which this guide explains — it rarely is.

What Is Included in a Buyers Agent Fee?

This is one of the most important questions to ask — and one that many buyers don’t ask clearly enough before signing an engagement agreement. The fee structure matters, but so does what you’re getting for it.

 

A full-service buyers agent fee should cover:

 

  • Brief development — a detailed consultation to understand your requirements, must-haves, lifestyle factors, budget, and timeline
  • On-market search — monitoring new listings across your target suburbs and filtering against your brief
  • Off-market sourcing — active outreach to selling agents and the agent’s own network to surface properties not publicly listed
  • Physical inspections — attending open homes and private inspections on your behalf, with written and video reports
  • Price appraisal — independent assessment of market value against comparable recent sales for any property you want to pursue
  • Due diligence co-ordination — managing the engagement of building and pest inspectors, strata report review, and briefing your solicitor on contract issues
  • Negotiation — conducting all price and terms negotiations with the selling agent on your behalf, whether by private treaty, pre-auction offer, or post-auction pass-in
  • Auction bidding — attending and bidding at auction on your behalf
  • Settlement liaison — co-ordinating with your solicitor and broker through to settlement, including pre-settlement inspection

 

A partial service (Appraise and Negotiate, or Done With You) covers a subset of the above — typically from the point where you’ve already identified a property. The fee reflects the reduced scope.

 

What is typically not included in a buyers agent fee: third-party costs such as building and pest inspection fees, strata report fees, solicitor/conveyancer fees, and stamp duty. These are paid separately and directly by the buyer.

Service Tiers and What They Cost

Unicorn Buyers Agents offers three primary engagement options, each priced according to scope:

Done For You

The complete service. We take on your brief and manage the entire process — on-market and off-market sourcing, weekly inspections, price appraisal, due diligence, negotiation, and settlement co-ordination. You are involved at the key decision points; we handle everything in between. Best for buyers who want to fully delegate the search process. Our fee is between 1% and 2.5% of purchase price, agreed and fixed once we understand the level of work involved.

Done With You

Initial due diligence and appraisal on properties of interest before you inspect. Independent price intelligence, follow-up due diligence, and negotiation (and auction attendance) for those properties you love. Best for buyers who are active in the market and want expert support from start to finish. Our fee is between 0.5% and 1% of purchase price, agreed and fixed once we understand the level of work involved.

Auction Bidding

Pre-auction strategy and representation on the day. We only take on auctions we have assessed as winnable. We develop a bidding approach based on your ceiling, the likely competition, and the auctioneer's style, then bid on your behalf. This is a fixed fee — and it includes a second auction bidding free of charge if we are unsuccessful. Best for buyers who have done their research and simply want an experienced professional in their corner at the auction.

Fee quotes are provided upfront once we understand your brief. Complete a homebuyer fact find or investor fact find and we’ll respond within 24 hours.

Is the Fee Worth It? The ROI Case

The honest answer is: for most buyers in Sydney’s inner ring, yes — and often clearly so. Here is why.

The three ways a buyers agent fee pays for itself


1. Negotiation savings. Dan Sofo has a track record of purchasing at 3%–15% below comparable market value — the result of accurate price intelligence and firm, experienced negotiation. On a $2 million purchase, a 3% saving equals $60,000. That's multiples of the fee, captured on day one.

2. Asset quality and long-term compounding. A buyers agent doesn't just find a property — they find a better one. The difference between a good purchase and a great one compounds significantly over time. A $2 million property growing at 7% per year rather than 5% is worth approximately $860,000 more after ten years. The quality of what you buy matters as much as what you pay for it.

3. Time savings. A thorough inner-Sydney property search without a buyers agent typically takes 80–120 hours across inspections, research, agent conversations, and due diligence. For a professional billing at $400+ per hour, or simply someone protective of their time, that's a significant cost. A buyers agent absorbs that time entirely.

The cases where a buyers agent fee is less clearly justified: very straightforward, low-competition purchases in thin markets, or buyers who are already deeply experienced in their target suburb and have established agent relationships. For the majority of Sydney buyers — particularly those targeting the Eastern Suburbs, Inner West, or Lower North Shore — neither condition tends to apply.

"It's important to note that the actual worth of such a property is at least $200K higher. The amount paid to Unicorn Buyers Agents is, in my opinion, an investment rather than a cost." — Peyman Soltani, investor client

Tax Treatment of Buyers Agent Fees

The tax treatment of buyers agent fees differs depending on how you intend to use the property.

Investment Property

Buyers agent fees on investment property are generally treated as a capital cost of acquiring the asset. They form part of the cost base for capital gains tax (CGT) purposes — meaning they reduce the taxable capital gain when you eventually sell. They are not typically deductible as an immediate expense in the year of purchase.

In practical terms: the fee is not lost. It defers tax rather than creating an immediate deduction. The benefit is realised at the time of sale.

Owner-Occupied Property

Buyers agent fees on your primary residence are generally not tax deductible — either immediately or via the cost base — because owner-occupied property is exempt from CGT.

If You Might Convert to an Investment Property Later

If you purchase as an owner-occupier but may later rent the property out, the position can become more complex. A portion of the cost base may be relevant when calculating a future partial CGT liability. This is one of the situations where advice from your accountant at the time of purchase — not later — is particularly valuable.

Tax rules can change and individual circumstances vary. Always confirm the treatment of buyers agent fees with your accountant before relying on any general guidance.

Red Flags in Buyers Agent Fee Structures

⚠ Fee structures to be cautious about


  • Uncapped percentage fees — no ceiling on what you can pay, and an implicit incentive for the agent to support a higher purchase price
  • Referral fees from developers or property marketers — a genuine conflict of interest. A buyers agent receiving commissions from the sell side is not acting exclusively in your interest
  • Vague scope — a fee quoted without a clear definition of what work is included. You may be paying for less than you think
  • No engagement agreement — verbal fee arrangements are unenforceable and invite disputes
  • Success fee only with no retainer — creates pressure to transact quickly rather than find the right property
  • Fees quoted significantly below market — in a competitive market where senior agents are in high demand, very low fees typically signal limited service scope, junior execution, or both
  • No mention of engagement or retainer fee — reputable buyers agents invest significant time before a purchase occurs; a structure with no upfront component can indicate a less committed engagement

✓ What good fee transparency looks like


  • A clear written engagement agreement before work commences
  • A fixed fee or capped percentage agreed upfront — no surprises
  • A defined scope of service: exactly what is and isn't included
  • Explicit confirmation that no referral fees are received from any third party
  • Clear explanation of what happens if the search is unsuccessful
  • A retainer or engagement fee that reflects the work required to find and secure the right property

How to Compare Buyers Agents on Fees

Fee comparison is only meaningful if you’re comparing like for like. A lower fee that covers only appraisal and negotiation is not comparable to a higher fee covering a full six-month search. Before comparing fees across agents, establish the following for each:

 

  • What service tier does this fee cover — full search, appraise and negotiate, or auction bidding only?
  • Is it a fixed fee, a percentage, or a capped percentage?
  • What is the engagement fee (retainer) and when is the balance payable?
  • What happens if no property is purchased?
  • Who does the work — the senior agent you meet, or a junior?
  • Does the agent receive any referral fees or commissions from any third party connected to the transaction?
  • How many active client briefs is the agent running simultaneously?

 

Two fee quotes can look identical and represent fundamentally different propositions. The questions above reveal the difference.

How Unicorn Buyers Agents Fees Work

We keep our fee structure straightforward.

 

Fees are quoted on a case-by-case basis once we understand your brief — the suburbs you’re targeting, your budget, the property type, and the service level you need. As a guide, fees range between 0.5% and 2.5% of the target purchase price.

 

We offer two structures depending on what suits your brief:

  • Fixed fee — a set amount agreed upfront, independent of final purchase price
  • Capped percentage — a percentage of purchase price with a maximum fee agreed before work begins

 

We do not receive referral fees or commissions from any third party. No developers, builders, or property marketers. Our only client is you.

 

Dan Sofo works personally on every brief he accepts. There are no juniors, no handoffs. The fee you pay is for Dan’s attention, relationships, and negotiation — not a team that delegates down.

 

To receive a tailored fee quote, complete one of our short fact find forms — it takes about three minutes and allows us to understand your brief before we speak. We respond within 24 hours with a fee proposal and a clear timeline to commence work.

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Frequently Asked Questions

How much does a buyers agent cost in Sydney in 2026?

Buyers agent fees in Sydney typically range from 0.5% to 2.5% of the purchase price, depending on the level of service, complexity of the brief, and price point. A full search service on a $2 million property might cost $30,000–$40,000. Auction bidding or appraise-and-negotiate services on properties you've already found are priced lower, typically as a fixed fee. Unicorn Buyers Agents provides a fixed-fee quote tailored to your specific brief.

What is the difference between a fixed fee and a percentage fee for a buyers agent?

A fixed fee is a set amount agreed upfront regardless of what you pay for the property. A percentage fee is calculated as a proportion of the final purchase price — meaning the buyers agent earns more if you pay more. A capped percentage combines both: a percentage structure with a maximum fee agreed upfront, protecting the buyer from uncapped exposure. Fixed fees and capped percentages align the agent's incentive with getting the right result, not a higher price.

Are buyers agent fees tax deductible in Australia?

For investment property, buyers agent fees are generally treated as a capital cost of acquiring the asset. They form part of the cost base for CGT purposes, reducing your capital gain on eventual sale. They are not typically deductible as an immediate expense in the year of purchase. For owner-occupied property, buyers agent fees are generally not tax deductible. Always confirm the treatment with your accountant.

What is included in a buyers agent fee?

It depends on the service tier. A full search service covers brief development, on-market and off-market sourcing, physical inspections, price appraisal, due diligence co-ordination, negotiation, and settlement liaison. A partial service covers appraisal and negotiation on properties you've already found. Third-party costs — building and pest, strata reports, legal fees — are always separate.

Is a buyers agent fee worth it in Sydney?

For most buyers in Sydney, yes. Dan Sofo has a track record of purchasing at 3%–15% below market value. On a $2 million purchase, a 3% saving equals $60,000 — multiples of the fee, captured at purchase. Add time savings of 80–120 hours and the benefit of accessing off-market opportunities, and the ROI case is clear for most inner-Sydney buyers.

Do buyers agents charge if they don't find a property?

Typically, a retainer or engagement fee is charged upfront to commence the search, with the balance payable on successful purchase. If no purchase is made, the engagement fee covers the work done to that point. Always confirm this before signing the engagement agreement.

Why do some buyers agents charge a percentage and others a fixed fee?

Percentage fees mirror how selling agents are paid and are common in the industry. The risk for buyers is that a percentage structure creates an incentive for the agent to support a higher purchase price. Fixed fees remove that incentive. A capped percentage is a hybrid that retains flexibility while protecting the buyer. Ask your buyers agent to explain their rationale for the fee model they're recommending.

What are red flags in a buyers agent fee structure?

Red flags include: uncapped percentage fees; referral fees from developers or property marketers (a conflict of interest); vague scope with no clear definition of what's included; no written engagement agreement; a success-fee-only structure with no retainer; and fees quoted significantly below market rate, which typically signals limited or junior service.

Can I negotiate a buyers agent fee?

You can have a conversation about fee structure — fixed vs capped percentage — and the scope of service included. What you generally can't do is significantly reduce a full-service fee without a corresponding reduction in scope. Be cautious of buyers agents who agree very quickly to large reductions: it may signal the original fee was inflated, or that service will be quietly cut back.

How do I get a buyers agent fee quote in Sydney?

Complete one of our short fact find forms — homebuyer or investor. It takes about three minutes. We respond within 24 hours with a tailored fee proposal and expected timeline to commence work.

Ready to Understand What Your Search Will Cost?

Book a 15 minute call with Dan to discuss your search, your suburbs, and what’s achievable at your budget. 

Even better — complete the form before booking a call so we can discuss your brief from day one.

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12 popular buyers agent questions answered 

 

When it comes to buying a property, many people assume that they can navigate the process on their own. However, purchasing a home or an investment property is often a complex and time-consuming process that requires expert knowledge and guidance. This is where a buyers agent can be incredibly valuable. A buyers agent is a licensed real estate professional who specializes in representing the interests of homebuyers. 

 

In this article, we will explore what a buyer’s agent is and the benefits they offer, as well as when it is appropriate to engage their services. Whether you’re a first-time buyer or a seasoned investor, understanding the role of a buyer’s agent can make all the difference in finding your dream property.

 

What You’ll Learn From This Article

 

  1. What is a buyers agent? 
  2. What’s the difference between a real estate agent and a buyers agent?
  3. How much do buyers agents charge?
  4. Are buyers agents worth it?
  5. How much will it cost me not to use a buyer’s agent?
  6. Do i need a buyers agent in today’s market?
  7. How to choose a buyers agent?
  8. What questions should i ask a buyer’s agent before hiring them?
  9. Can you claim buyer’s agent fees on tax?
  10. Can a property seller contact the buyer agent directly?
  11. Do i have to sign a buyer agent agreement?
  12. Can you have multiple buyers agents?

 

What is a buyers agent?

A buyer’s agent is a fully licensed property agent who works on behalf of a homebuyer or property investor in a real estate transaction. The primary responsibility of a buyer’s agent is to help their client find and purchase a home that meets their specific needs and budget.

 

Buyer’s agents work exclusively with buyers and are therefore focused on helping buyers navigate the complex and sometimes overwhelming process of purchasing a home. They typically have extensive knowledge of a local real estate market and relationships with a network of selling agents in that area.  

 

Buyer agents offer purchasers transparency and clarity around price and market value by researching comparable sales transactions and will drive the due diligence and research process to mitigate the risk of a purchased property causing problems or stress to its new owner in the future. 

 

The way a property is marketed, negotiated, and sold depends on many factors including demand for that property type, the expectations of the vendor, and the particular style of the sales agent. Every transaction is unique and a buyers agent’s experience navigating the many variations of the sales process and the legal and financial requirements involved can undoubtedly give a purchaser an advantage.

 

Another of the key benefits of working with a buyer’s agent is that they can provide objective advice and representation throughout the home buying process which may otherwise become an emotional decision. 

 

Because they work solely on behalf of the buyer, they can help their clients make informed decisions without being influenced by any other parties involved in the transaction. Additionally, many buyer’s agents will deploy methods and resources that can help buyers find and evaluate the right property more efficiently than they might be able to on their own. This includes accessing properties not listed for sale by traditional means (off-market or silent listings). 

What’s the difference between a real estate agent and a buyers agent?

Buying and selling real estate can be complicated. That’s where buyers agents and real estate agents come in. A real estate agent is a professional who sells properties. Who does a real estate agent represent? The seller. Real estate agents are paid through commission from either the seller or the vendor. A buyer’s agent, exclusively represents the buyer. They act in the buyer’s best interest and help them through the process of securing the property they want.

 

How much do buyers agents charge?

Many buyer’s agents charge for service like a real estate sales agent ie, a percentage commission. This can make sense if you’re selling a property as the sales agent is incentivised to achieve a higher sales price. Paying more commission to your buyers agent the more you pay for your property can make less sense for buyers In hotter market years such as during 2020- 2021, Unicorn Buyers Agents offered fixed fees, to protect our clients.

 

In neutral or cooler years we offer a percentage-based fee capped at a pre-agreed rate. This way our buyers may benefit from a lower-than-expected commission whilst also having the peace of mind of knowing the maximum they’ll pay. 

For maximum flexibility and transparency, we offer clients the choice to lock in a fixed fee or to hire us on a percentage-based fee capped at a pre-agreed amount.

 

Are buyers agents worth it?

In Australia until recently the use of a professional buyers agent to undertake one’s search and property purchase was uncommon.

 

Sydney house hunters have long been resigned to the stresses of endless weekend inspections and annoying agent phone calls, not to mention having to negotiate with seasoned professionals trained in the art of extracting the highest possible price for their client- the seller. 

 

In the last few years however Australians are increasingly following the trend of their US counterparts to engage a buyers agent to find, negotiate and secure residential owner-occupied and investment property. Why?

 

 The competition for the best property in the most desirable suburbs has intensified, with a significant percentage invisible to the average house hunter. Property prices have spiked- and so has the cost of making a mistake. And we have increasingly become time-poor professionals who realise the value in deploying another professional to do what they do best.

 

Hiring a buyers agent does make sense but what can you expect for your money, and how will you assess the value of your buyers agent’s services?

 

A good buyer’s agent in Sydney will understand your brief in detail, then tailor their services and fees to your exact needs. This may be as simple as attending an auction to bid on your behalf, or appraising a property you have found, or conducting the entire search campaign all the way from day one to contract settlement.

 

  • ‘Bid at auction’ gets you a hired gun as your proxy on the big day. They will bid, deploying one of many strategies they have available, which they believe is best on the day to secure the property for you for the lowest price possible whilst taking into consideration other bidders, and the auctioneers style.
  • An appraisal and negotiate service will see a buyers agent provide you with a professional opinion on the market value and likely selling price of a property you have found, based on recent comparable sales, market momentum, and level of interest in that particular property. The agent will then deploy their negotiation expertise and relationships to negotiate a purchase by private treaty.
  • A complete search really should be just that. The best buyers agents will go beyond public listings to use real estate agent outreach, professional research tools, community networking , door knocking and letterbox drops to source and shortlist potential properties. 

Dozens of physical inspections will follow, accompanied by detailed research to validate the properties have no issues and can be secured within your budget. They will have a team of professionals including building inspector, engineer, solicitor, builder, handyman and property manager- to do all the heavy lifting, and will coordinate them all on your behalf. They’ll deal with selling agents, so you don’t have to. And they’ll package up a shortlist of desirable options to make your decisions. easier.

 

 A top buyers agent will show you the property that ticks your boxes, and sometimes that may be unconventional- but a buyers agent will also show you how an easy low-cost renovation can leave you with the property you dreamed of.

 

 An expert buyers agent will be your voice of reason- guiding you to avoid psychological pitfalls like analysis paralysis, FOMO, buyers remorse, and more.

 

 Finally, a good buyers agent will ensure you pay the right price, the lowest price possible given market conditions. 

 

How much will it cost me not to use a buyer’s agent?

I talk to buyers every day and a comment I often hear is “I’d love to use a buyers agent to find my property but I really can’t afford it because I need to put every dollar toward my purchase”.

 

I put one to three on-market and off-market property matches in front of my clients every week. These properties are within budget, they have been physically inspected and researched to make sure they’re problem free. 

 

I know how the sales agent will run the campaign and by deal time I’ll know the minimum price that needs to be paid to secure the property. This saves my clients thousands of dollars of search time  and many thousands more by not overpaying. I’ll also buy a better house on a better street which means tens, or hundreds of thousands of dollars more in your pocket. 

 

How? Let’s assume you manage to buy without overpaying and you’ve chosen a good suburb, street, and property type that grows in value at say 4% a year for the next decade.

 

 Now let’s assume I could buy you a slightly better property that grows in value at a slightly better 5% for the next decade. That 1% extra on a $2m property means my purchase will be worth $200k more than yours in ten years time. Not using a good buyers agent will cost you money.

 

Do i need a buyers agent in today’s market?

In a seller’s market with FOMO running high it seems easier to understand the value proposition for a buyers agent.

But great buyer agent work is just as critical in a cooler market. Here’s a few reasons why.

  1. Selling agents get much better at returning your calls in a tough market but they still have one thing top of mind – squeezing the highest possible price out of you. That’s their job. 
  2. We have the relationships with agents which helps us find opportunities in the form of off-market /silent listings by anxious and distressed owners. We also help bring things to market. Potential sellers are more likely to list when a buyers agent walks through the home during an appraisal. 
  3. We assess up to the minute market value. Sydney property prices are volatile. Price action varies suburb to suburb, street to street. Last nights’ sale resets todays suburb benchmark. On a $2M home purchase overpaying by 3% is a $60,000 mistake and buying at a 5% discount to market is a $100,000 win.
  4. Cooling markets are a minefield of second grade properties and unrealistic vendors. We shortlist, inspect and present only the best, most viable options saving you time money and stress. 

How to choose a buyers agent?

Hiring a buyer’s agent is a significant investment. Understanding how to prepare for the buying process and how to choose the right agent for your search will save you in every respect. Avoid the following mistakes and you’re well on the way to a profitable, and enjoyable buyer’s agent experience.

 

Mistake #1. Hiring an agent before your finance is approved.

Serious property hunting without the funds available is unproductive. You cant buy if you haven’t got the money! The first step of buyer preparation is to have your finance in place- preferably a fully assessed loan rather than just an approval in principle.

 

It’s certainly advisable to research your property market, write your brief, and get your buying team in place whilst arranging finance. However, the right time to put your buyer’s agent to work officially is when your finance is approved.

 

Mistake #2. Choosing a buyer’s agent without a buying team if you don’t have one of your own

A successful buying assault on a sought-after home or investment requires a crack team of experts; In addition to your buyer’s agent you’ll need a top broker and solicitor, and if the property is a renovation project, an architect, private certifier, a builder, or tradespeople, an engineer a  quantity surveyor as well. This group comprises your personal army, your buying team.

 

If you don’t have a team at hand make it a high priority to select a buyers agent who can bring one to the table. Hiring this agent means you’ll inherit their panel of experts who have worked together in the past. You’ll enjoy the advantage of ‘synergy’ when an experienced team works together with your buyer’s agent for a great result -all without you having to lift a finger.

 

Mistake #3 Not choosing a buyer’s agent who is completely independent and working for you

A buyer’s agent must be  100% working in your best interest.

 

This means they should not accept any type of incentive or remuneration that would affect their ability to give you independent advice.  A clear contravention of this principle would be a buyer’s agent accepting an incentive from a builder or developer for an introduction that leads to a sale. 

 

Standard agency agreements in all states generally make provision for an agent to disclose referral fees and commissions so you can understand whether there is a financial incentive involved with any of your buyers agents associations.

 

Mistake #4 Not choosing the buyer’s agent service that corresponds to your needs

Good buyers agents generally have three or four core offerings ranging from “Done For You” to appraisal, negotiation, and auction attendance. Choosing the appropriate service will require you to be realistic about your own property skillset and the time you can allocate to your house hunting.

 

 If you have the network, resources, and experience to access suitable properties then an ‘appraise and negotiate’ or ‘bid at auction’ service may really be all you need.


Be aware that although you think you can do the job using just these services, you can’t buy what you can’t see and this approach may cost you more time and money in the long run. 

 

Mistake #5 Not choosing a buyer’s agent who specializes in your desired area

An agent that works (and lives and plays) in the suburbs you are searching within is tuned into the important details that can affect a successful purchase. A formal appraisal or valuation is no comparison to the local knowledge of a seasoned area specialist. Bad neighbours, upcoming poor development, problematic executive committees..a local specialist will be aware and steer you clear of troublesome issues that are not apparent to an outsider.

 

Mistake #6 Not paying the right price for the service you’re getting

Buyer’s agents’ pricing can vary widely, and with good reason. Any good agent will tailor the scope of works to your circumstance and most will agree on a fixed price that reflects the work involved. It is worthwhile to understand what that work entails.

 

 A detailed, particular brief for a property in a tightly held suburb should command a premium and what you’ll be paying for is the buyer’s agent’s network of local selling agents, business people, and community, as well as their less conventional methods of sourcing property.

 

More abundantly available property in a less salubrious suburb will see you paying a buyer more for their time conducting inspections and putting together the deal, or their analytical skills if it is an investment property.

 

Paying an entry-level agent an entry-level fee for a challenging brief will not give you an expert outcome.

 

Be as wary of ‘cheap’ fees as exorbitant fees. Take a moment to consider the difficulty of the task at hand and the time and expertise required.

 

Mistake #7 Not assessing the methods your buyer’s agent will use to find your ideal property

Good buyer’s agents will apply multiple resources to source property and it merits asking how your buyer’s agent operates. Key activities you should listen for include personal outreach to a selling agent network, extensive use of research tools such as RPData, and personal outreach to potential sellers, amongst others. Opportunities arise from contact with people and the best agents spend all day talking and researching.

 

Mistake #8 Not choosing an agent with auction experience if that’s the likely method of sale for your property

If the common method of sale for your future home or investment is via an auction then your buyer’s agent should have extensive bidding experience.

 

Auctions are volatile environments where the odds are stacked against the seller. There is plenty of room for error leading up to, and on the day and you will need an agent that, is calm, knows all the rules, and has multiple battle-tested bidding strategies. A well-chosen agent will often know the auctioneer and their calling style which can help.

 

It’s not considered rude to ask your prospective buyer’s agent about their auction experience, and their preferred bidding strategies.

 

Mistake #9 Not screening your agent for negotiating power

Buyer’s agents are negotiators. They are the conduit between you and all the other players in a high-stakes situation. They’ll likely even mediate between you and your spouse when the pressure is on at deal time! To screen for a good negotiator you’ll need to trust your instincts rather than ask questions. Your prospective hire should leave you with the sense that things are going to go your way. Chances are they’ll be waving that magic wand over the other parties too which makes a good deal more likely.

 

Mistake #10 Not having a well-defined brief for your agent

The more thoroughly you detail and communicate your wants and needs, the better your outcome. A good brief goes way beyond just the property attributes. If the property is to be an investment share your overall long-term goals, how the purchase will fit into your portfolio, and when and how it will be divested.

 

If it’s your family home share what you do for work sports and hobbies, what your evenings and weekends look, like where your kids spend their time. Property choice is driven by lifestyle and understanding this is key for your agent to find that perfect property match.

 

Mistake #11 Not confirming your buyer’s agent will be working exclusively on your brief

A buyer’s agent cannot work in your best interest if they have signed on other clients looking for the same type of home in the same suburb and a similar price range.

 

You need to ask the question- will your brief, price range and instruction have exclusivity in your agents’ portfolio, until they have found your property? It’s not a rude question to ask a prospective buyers agent what other types of clients they will concurrently be working on and what assurances they can give you there will be no conflict of interest.

 

It’s easy for buyer’s agencies large and small to blur the line by having multiple clients with similar briefs. In a tight market with short supply who gets first dibs on something matching multiple briefs?

 

Mistake #12 Choosing a larger agency and being assigned a junior or an associate.

As with many professional services sectors you run into the possibility of being pitched to by a senior expert only to have your brief delegated to a junior once you are on board.

 

 This can be a frustrating experience. If you are choosing a larger organisation always confirm that the agent you want to be looking after you actually will personally be responsible for your search.

 

Mistake #13 Not reference checking your Buyers Agent

Just as you would when you hire an employee- dont be afraid to ask your buyers agent for one or two names of past clients who would be happy to comment on how they worked. Confidentiality issues aside a good buyers agent should be able to agree to this. 

 

So there it is in a nutshell. Using a buyer’s agent will be a profitable and enjoyable experience so long as you can avoid the above mistakes.

What questions should i ask a buyer’s agent before hiring them?

 

When you’re hiring a buyer’s agent, it’s important to ask a few questions to ensure that they’re the right fit for you. Here are some questions you may want to consider:

 

  1. What experience do you have as a buyer’s agent?
  2. How do you plan to help me find the right property?
  3. How familiar are you with the local real estate market?
  4. Can you provide references from previous clients?
  5. How will you communicate with me throughout the buying process?
  6. How do you handle negotiations and bidding wars?
  7. Do you have experience working with first-time homebuyers?
  8. How do you get paid for your services?
  9. How many clients do you currently have?
  10. Do you work full-time as a buyer’s agent or do you also handle listings?

Asking these questions will help you get a better sense of the agent’s experience, expertise, and approach to working with clients, which will help you make an informed decision when hiring a buyer’s agent

 

Can you claim buyers agent fees on tax?

If you are using a buyer’s agent to purchase an investment property, for example, your buyers agent fees may be capitalised into the purchase and be deductible on sale. Even if you are using a buyer’s agent to purchase a personal residence, it’s worthwhile hanging on to the invoice. Check with your accountant and tax agent to see what portion of fees may be expensed and how. 

Can a property seller contact the buyer agent directly?

Yes, a property seller can contact the buyer’s agent directly. This does in fact happen. Here at Unicorn Buyers Agents we are contacted daily by sellers interested to avoid sales agents commissions by seeing if we may have a buyer for their property.

A property seller who already has their home listed with a sales agent is much less likely to contact the buyers agent directly as they trust their nominated agent to facilitate the transaction. 

 

A property seller who is selling privately will contact the buyer agent directly and we have conducted a number of purchases directly with the seller.

 

On occasion, a buyers agent may contact a seller directly even if they have a sales agent- but always with the permission of the sales agent. It may be to clarify some detail directly, to give a client peace of mind. 

 

Do i have to sign a buyer agent agreement?

Yes, you do have to sign a buyer agent agreement. A buyers agent operating in NSW is required to be either a class one or class two real estate agent and must operate under legislation set down in the Property, Stock and Business Agents Act and Regulation. The legislation stipulates that an agency agreement must be in place between an agent and a principal, outlining the terms on which the work will be conducted.

Can you have multiple buyers agents?

Whilst you could theoretically have multiple buyers agents working for you, it would be both unlikely and undesirable for you to enter into this arrangement. Most buyers agents will require you to enter into an exclusive agency agreement which recognizes they alone are working for you and their fee is liable to be paid even in the instance another buyers agent finds a property.

 

Here at Unicorn Buyers Agents we work with clients confident to trust us to find and purchase their home and as such only enter into exclusive agency agreements. We do not co-opt with other agents. 

 

So saying, we do occasionally collaborate with buyers agent colleagues outside of our organisation to assist us with a challenging brief. In this instance, we negotiate remuneration directly from our commission and no further fee is payable by our clients.