Hey there! my name’s Ben Everingham and today we’re gonna to talk about how much do buyers agents actually make.
Good day, my name’s Ben Everingham, and I’m the director here at Pumped On Property. In the last twelve months, we’ve helped our clients buy or build over sixty million dollars worth of property. And so, for any of you that haven’t come across my website before, or checked out my videos, watched any of our webinars, or even had a one on one strategy session, today’s video is really about how much do buyers agents actually make. So we’re not gonna talk so much about ‘Ah, the business is profitable’ or ‘what does an individual buyers agent make in terms of their own income?’ but we’re more referring to how much does it cost to actually work with a buyers agent. So before we get started, again, I’m sure that you know what a buyers agency is if you’ve arrived on this video, but a buyers agent should basically sit down with you and help you develop a long-term strategy for your investments and your goals for the future. Then they should help you break that strategy down into a series of very simple steps that you need to take over the period of time to get from A to B fastest. They should help you identify a crystal clear strategy for the next property that you’re gonna buy, and then they should educate you completely on the marketplace that they target.
So different buyers agents specialize in different market places. As a business, we work in the New South Wales and Queensland marketplaces, but theres different buyers agents that target different markets. Some of them target regional, some of them target metro, and everybody has a different strategy. So it’s about finding the agency that aligns with your strategy and your goals. At Pumped On Property, we really like to buy properties with great long term future capital growth potential, really good cashflow, above average returns in terms of cash flow, and also properties where you can add value to them, or add manufactured growth to them, so you’re not just waiting for the market to do it’s thing, but you can actually renovate, add bedrooms and bathrooms, add granny flats or subdivide, all those sort of fun stuff for that next level of investment so that you can speed up that journey and make a bit more money quicker.
So in terms of the two ways that buyers agents make their money, generally they charge one of two ways. The first way is a fixed price or fee for a service model. So a buyers agent may charge anywhere between seven and twenty thousand dollars for the property that they’re gonna target for you, and again, that fixed price model can work well because it gives you security and certainty, and there’s no motivation for the buyers agent to go out and spend more money for a property just because they’re getting a bigger commission. The second way that buyers agents charge is as a percentage model. A lot of buyers agents, probably eighty percent of buyers agents in Australia actually charge this percentage model. It’s generally two and three percent of the value of the property. So on a five hundred grand property, you may pay between ten and fifteen grand to find the right property. On a million dollar property, you’re talking between twenty to thirty thousand dollars.
So there’s different ways that buyers agents charge, theres pros and cons. As I said, every buyers agency’s got it’s own strategy. It’s your job to actually find a partner that you align with and that you work with. If you’re just in the process now and beginning to think about consider using a buyers agent, I’d love the opportunity to offer you a one on one strategy session. My name’s Ben Everingham and I’m the director here on Pumped On Property, as I said we buy a huge amount of investment property in Queensland and New South Wales each year, and I’d love the opportunity to sit down with you, learn more a bit about what it is you’re trying to do, and you can ask some more questions about what a buyers agent does and how we work I can explain a bit more about what we’ve done for some existing clients.
So until next time, thank you so much for your time today, and stay hungry!