Good day, my name’s Ben Everingham and today we’re going to talk about how much buyers agents charge.
Hey there, my name is Ben Everingham and I’m the director here at Pumped On Property, a buyers agency who this year to date has bought over a hundred and twenty or sixty million dollars worth of property for our clients. At the moment we’re primarily targeting the Queensland and New South Wales marketplaces.
And today I’m going to talk about how much buyers agents actually charge.
So, I suppose before we jump into that, if you’re already looking at this video you probably understand what a buyers agent does. But a buyers agent basically should, in my mind, help you develop a crystal clear strategy from now to the longer term, around your next property purchase and help educate you on the different options available in the marketplace right now that would suit your situation and goals, and then they should educate you on the marketplace and give you a range of markets and suburbs within those markets and then property types within those suburbs to wrap your head around.
And so a buyers agent basically helps you go out and buy the best property at the best possible price, and helps align where you are and where you’re looking to go. So a great outcome for a client, in my mind, should be a property that achieves good long term and short term capital growth. That achieves or has the ability to add value to the property, so manufacturing growth is extremely important as well, and that might be through renovations or subdivisions, it might be through adding granny flats or it might be adding bedrooms and bathrooms. And then the third thing that’s also important to me is cash flow. So I personally really, really appreciate cash flow and so good yields are important, or properties with the potential to, you know, add things like granny flats or secondary dwellings to increase that yield is important, too.
So there’s two ways that buyers agents charge in Australia. There’s a fixed pricing model, which is basically, generally, either a one off fixed fee for service which can be paid to some buyers agents up front. And other buyers agents charge a bit up front and more when they find the right property. So that’s the fixed model and that can vary, generally depending on the buyers agency, from anywhere between seven thousand dollars and twenty thousand dollars for a property. Some buyers agents are obviously a bit cheaper some are a little bit more expensive. It’s not so much about price but about value and what that buyers agent can bring to the table and a clear track record of actually being able to demonstrate and deliver high value properties to their clients.
The second way that buyers agents may charge would be a variable rate or a percentage rate. So generally their percentage is anywhere between two and three percent of the value of a property. So lets say you were going for a five hundred thousand dollar property, a buyers agent might charge between ten and fifteen thousand dollars, for example. If you were going for a million dollar property, it can be significantly more obviously, as well.
So it’s really important to understand the two ways that they charge, and to make sure that you’re getting a buyers agent who’s licensed, who is happy to give you the names and numbers of clients that they’ve worked with in the last six months or twelve months, that has a good reputation online, that has strong partners, that’s an investor themselves, and that gives you the type of service that you’re looking for.
So I hope this video added a little bit of value and until next time, stay hungry. Thank you!