From scouting for potential properties to the day of final settlement, buying a property can be stressful and time-consuming at the best of times. Enter the buyer’s agent. Sometimes called buyer’s advocates, these licensed professionals help you navigate the property market and find your dream home or investment at the best possible price. In exchange, they charge a fee or commission.
What does a buyer’s agent do?
A buyer’s agent specialises in researching, evaluating and negotiating a property purchase on behalf of an interested buyer. There are 2 main services an agent can perform for you:
Full search
Sometimes referred to as full service, this is a common option if you’d like assistance with your purchase from start to finish. It includes searching for properties that meet your criteria, negotiating the sale price and bidding at auction.
![Auction hammer icon](https://www.finder.com.au/finder-au/wp-uploads/2017/06/auction-bidding-150x150.png)
Auction bidding only
You can also employ a buyer's agent just to bid on a property that you have found yourself. Auction bidding is not for the faint-hearted, so it can be helpful to have an experienced professional represent you on the day. This option is often taken up by interstate or overseas buyers.
How much does a buyer’s agent cost?
Like most things related to buying a house, buyer’s agents don’t come cheap. Fees vary according to the services the agent is employed to perform and usually fall into one of these categories:
- Fixed fee. Some agents may lock in a flat rate or fixed fee, which is usually segmented into price brackets according to the value of the property you’re looking to purchase.
- Commission. Usually charged at 1.5–3% of the final purchase price, plus GST.
- Retainer. Be mindful that regardless of whether an agent is using the fixed fee or commission model, you may be asked to pay an upfront fee of anything from $1,000 to 50% of the total fee payable.
In spite of the cost, provided you do your research and choose an agent who’s transparent about their fees from the outset, a buyer’s agent could save you significant money in the long run.
You can read more about buyer's agent fees in our handy guide
The benefits of using a buyer’s agent
Working with an experienced agent can make a significant difference to your property purchase. Agents can help with:
- Expert insights. A good buyer’s agent has extensive knowledge of different markets and can help you locate properties in areas with strong capital growth potential.
- Time savings and reduced stress. The services of a buyer’s agent can reduce your stress and save you from having to spend your own time researching the market, scouting different locations, inspecting multiple properties and negotiating competitive deals.
- An objective view. Choosing a property can be an emotionally charged process, particularly if it’s a home where you plan to raise a family. By providing a candid and professional opinion, a buyer’s agent can guide you towards a strategic investment and ensure you don’t overpay.
- Early property access. Well-connected agents can access off-the-market properties, which means you’ll be able to pip your competition at the post and inspect properties before they’re even advertised for sale.
- Professional negotiation. Attending an auction can be intimidating, particularly if you’ve never bid on a property before, so it’s beneficial to have someone representing you who knows when to bid – and when to throw in the towel.
How to find a good buyer's agent
Whether you're buying a home or investment property, having the right guidance can make all the difference. A buyers' agent, or buyers' advocate, can provide expert advice, access to off-market properties, give accurate price estimations and use their negotiation skills to ensure you get the best deal.
Rich Harvey, economist and CEO and founder of propertybuyer.com.au, says a good buyers' agent could find your next property within 30 to 60 days, compared to the average buyer time of 12 months without the help of a buyer's agent. Here's his suggestions for questions to ask to get the best buyer's agent:
1. What is your experience and track record?
A buyers' agent with a substantial track record in the industry will have a deep understanding of the market, local trends and sharp negotiation tactics. Look for agents who have been in the business for several years with a proven history of successful transactions, and ask for case studies or testimonials from previous clients.
2. How well do you know the local market?
A good buyers' agent should understand the nuances of different neighbourhoods, property values, and future development plans that could impact your property choice, and provide valuable insights into the best streets to buy, potential growth spots and areas to avoid.
3. What are your professional credentials and affiliations?
Buyers' agents must be licenced in each separate state. Check if the buyers' agent is a member of professional organisations such as the Real Estate Buyers Agent Association of Australia (REBAA), the Property Investment Professionals Association (PIPA) or state-based bodies like the Real Estate Institute of New South Wales (REINSW). Membership in these organisations indicates a commitment to high ethical standards and ongoing professional development. Also, look for agents who have won multiple awards and have a strong reputation in the industry.
4. How much do you charge?
The agent should be transparent about their fees and any additional costs that may arise during the buying process. Compare the fees of different agents to find one that offers good value for their services. Most agents will charge between 1.5% to 3% for the full search service and around 0.75% to 1% for the negotiation only service. Be wary of agents who are not upfront about their fees or seem excessively expensive without justification. Like with any professional service, the cheapest is not always the most cost-effective.
5 questions to qualify your buyers' agent
Once you have a shortlist of 2 or 3 potential agents, ask each of them some questions to land on your perfect match. You might even want to treat this as though you’re interviewing someone for a job:
- Are you an exclusive buyer’s agent or do you also sell property? This question helps you work out whether there's a potential conflict of interest. A genuine buyer's agent ONLY represents buyers – if they are also selling properties and earning a commission doing so, while charging you for theri services, there is a conflict.
- What previous purchases have you made in my chosen location and/or price range? Can they walk the walk? Ask to see at least 5 examples of recent buys in the locations on your hit list, as evidence of their local knowledge and results.
- How extensive is your network of contacts? Real estate is all about who you know, and a well-connected buyer’s agent could help you snap up properties before they even hit the market.
- Why should I use your services over another buyer’s agent? This is an opportunity for agents to explain that they are able to offer you something their peers can’t. Keep an ear out for empty sales-speak like "trust me" without any effort to share their results, and don't fall for unrealistic promises – like someone promising to secure you a property in 2 weeks when the market average is more like 2 months.
- Can I hear about your previous clients' experiences? Testimonials and reviews from previous clients will give you unfiltered insights into what it was actually like to work with the buyer’s agent.
More questions about using a buyer's agent
More guides on Finder
-
Grants and schemes for first home buyers worth $50K-plus
For first home buyers, there’s a range of grants, incentives and programs that could help you into your own home sooner than later.
-
When will interest rates go down?
After 13 interest rate rises from the RBA the rate of inflation is finally slowing. What does this mean for the future of interest rates?
-
Home loan cashback offers – Cash is king
Home loan cashback deals can help you refinance to a cheaper interest rate and get a lump sum cash payment. Compare the latest deals and check your eligibility today.
-
Calculate the income needed to buy a home in any suburb in Australia
Work out how much you need to earn to buy a house in any Australian suburb.
-
Average Australian mortgage statistics
Our comprehensive guide to home loan statistics.
-
Low deposit home loans that’ll get your first home faster
You may be able to get a low deposit home loan with just a 5% cash deposit. Here are the lenders who are more likely to lend you a 95% loan.
-
Compare reverse mortgages in Australia
Compare reverse mortgages and work out if this type of retirement finance is right for you.
-
Compare SMSF home loans and providers
Learn how you can set up an SMSF fund, compare SMSF home loans and buy an investment property in your super today.
-
Best home loans with offset accounts
What is an offset account? It can save you thousands in interest and help you own your home sooner.
Ask a question
Hi,
I’m about to set up a SMSF and wanting to invest in residential properties. I was told to use buyers agent to help me buy worthy, best performing investment properties. Can you please help me select reputable buyers agent that can source or have their presence/offices in all/most Australian states. Also their rates/fees if available?
Thanks Kindly,
Aiden
Hi Aiden,
Thanks for the question.
To find a reputable buyer’s agent, I would recommend looking for a member of the Real Estate Buyers Agents Association of Australia (REBAA) from their website. This is the professional body for buyers agents in Australia and allows you to search by state. ou may also read our guide to buyer’s agent fees and commissions.
I hope this helps,
Marc