Most buyers agents will charge a retainer, and then they will charge a success fee. Some charge a percentage; some charge a flat fee.
Flat fees can typically start at $10,000 for a purchase up to $600,000.
Retainers can vary from $1,500 to $3,000 depending on the purchase price of the property.
For that fee, they’re going to be tapping into their contact network that they’ve acquired over the years and years of business networking or being in the industries that they’re in; whether there’s a property off market that could be suitable for you, which means it’s not being advertised so, therefore, you’re not competing with dozens of other buyers.
Another reason to engage a buyers agent is that all buyers agents have a really good BS radar. We’ve seen it all. We’ve been in the industry long enough to know what the gimmicks are, we know what the questions to ask the agent are and how to get the information that we need without creating a scene or creating animosity between someone we’re trying to secure a property from and it does take a little bit of practice but having a good buyers agent on your side will open up the doors to the information that’s available that may not be available as an average buyer.
A good buyers agent has sound local knowledge. I’ve lived in Newcastle my whole life. I’ve worked in the property industry for – this is my 10th year now – a lot of these suburbs, I’ve physically been through every single street. I’ve spoken to, in some areas, every single person in those areas when I was in sales to get that really raw, in-depth knowledge of an area that you just can’t get from a website. You can’t get that knowledge from an app.
You need to invest in having a good buyers agent on your side so that you don’t make a mistake that could potentially cost you tens of thousands of dollars to rectify if you have to sell quickly and get out of a property because it’s not what you thought it was or it’s not going to do what you need it to do. Or it’s in an area that you didn’t realise was as bad as what it was. The neighbours around the back have parties every weekend. Or you’re set up where they’re building a boarding house next door.
You need that in-depth knowledge, and a buyers agent can help give you that.