What can you expect to pay for a buyers agent?
Like everything in life - it depends! Fees vary from agent to agent, and for the level of involvement as you're generally paying for the time and expertise of the agent acting for you.
There are no prescribed industry standards for fees. A genuine buyers agent will charge you a fee as they are not remunerated by any other party. Be sure to check when inquiring whether they receive any other source of income or revenue in-kind from third parties. You're looking for independence to gain the best outcome for you - not for your agent. External sources of remuneration only serve to muddy the water. A true buyers agent will only act in your best interests.
So how much do buyers agents charge? Some offer a commission structure, typically 2-3% of the purchase price for the full search service and 0.75-1.5% for negotiation-only or auction bidding-only services where you nominate the property. Others have a tiered rate, which increases relative to the price bracket of the purchased property and other buyers agents work on a fixed fee basis, a price which is fixed regardless of the price paid for your property. Depending on the agent, it varies.
Part of the fee will be usually be charged upfront as a retainer; around 10-50% upfront. If anyone claims to offer a free or ultra-low service, it's pretty clear that they're being paid by someone else and motivated by those interests instead of yours. My advice? Don't walk, run!
I like to keep things clear and simple. As a buyers agent, I charge a fixed fee for service. My clients are my sole source of revenue, and I'm not paid or rewarded in any form by anyone else. I charge an initial fee upon engagement with the balance of my fee due upon purchasing a property.
Buying property is a hefty financial commitment. Engaging a professional who knows the market, knows the players and can use their knowledge to get you a favourable outcome is a smart investment.
If you'd like to know how I can assist you, or to ask any other questions about working with me, please contact me at any time.
I look forward to helping you secure the right property at the right price.