Buying Advice
Buyers Agent Fees: What You'll Actually Pay
A plain-English breakdown of buyers agent fees in Australia. What they charge, how they charge it, and what to watch out for before you sign anything.
Buyers agent fees in Australia generally fall into two categories: a percentage of the purchase price, or a flat fee. Here's what that looks like in practice, what else you need to budget for, and what to check before you sign an agreement.
The Two Main Fee Structures
Percentage of purchase price
For a full-service engagement, this is typically 1.5% to 3% plus GST. On an $800,000 property, that's $12,000 to $24,000.
One thing worth knowing: some buyers argue that percentage-based fees create a mild conflict of interest, since a higher purchase price means a higher fee for the agent. It's worth raising this directly with any agent you're considering.
Flat fee
A set amount agreed upfront, regardless of what you end up paying for the property. For full-service engagements, flat fees typically range from $7,000 to $25,000 depending on the market and complexity.
Some agents use tiered flat fees based on your budget. For example: $9,000 for properties up to $1 million, $14,000 for $1 million to $2 million. This can make the fee more predictable.
Flat fees aren't always cheaper than percentage fees. It depends on the property price. A $15,000 flat fee is good value on a $1.5 million purchase but expensive on a $600,000 one. Run the numbers both ways.
What Influences the Cost
- Metro vs regional market (city markets tend to cost more)
- Full service vs negotiation-only vs auction-only
- The complexity of your brief
- The agent's experience and reputation
How Payment Usually Works
Engagement fee (retainer): Most agents require an upfront fee to get started, typically a few hundred to a few thousand dollars. This is usually non-refundable but is deducted from the final fee when you successfully purchase.
Success fee: The main fee, payable when you buy. Confirm whether this is triggered at exchange or at settlement — it matters.
GST: Always confirm whether quoted fees include GST or if it's added on top. 10% adds up.
Third-party costs: Your buyers agent fee doesn't cover conveyancing, building and pest inspections, stamp duty, or mortgage fees. Budget for these separately.
What to Check in the Agreement
Before you sign anything, go through these:
Fee structure: Is it percentage or flat? Does it include GST?
Auction fees: Some agents charge separately if you only need them at auction. Clarify this upfront.
Scope of service: Exactly what are they doing? Searching, negotiating, bidding, all three? How many properties will they present before additional fees apply?
Length of agreement: Most contracts run 3 to 6 months. Check if it auto-renews.
Early termination: What happens if you want to walk away? Some agents charge a cancellation fee based on work completed.
Definition of success: When does the success fee become payable? Exchange or settlement?
Exclusivity: Many agreements are exclusive, meaning you can't work with multiple agents at once. Make sure you're comfortable committing before you sign.
Are Cheaper Agents Worth It?
Sometimes, but not always. A lower fee can be tempting, but an inexperienced agent who pays too much for a property or misses red flags can cost you far more than the saving on their fee. Read reviews, ask for examples of recent purchases, and talk to them before you commit.
Tax Deductibility
If you're buying an investment property, the buyers agent fee is generally added to the cost base of the property for CGT purposes, reducing your capital gain when you sell. It's not an immediate deduction.
If you're buying a home to live in, it's not deductible at all.
Talk to your accountant before making any assumptions. Read our full guide on buyers agent fee tax deductibility.
The Bottom Line
Understanding the fee structure before you engage anyone saves headaches later. Ask every question you need to ask, get the agreement in writing, and make sure you know exactly what you're paying for.