How much do buyer's agents charge?
Buyer’s agents fees
Hi guys I it’s Heath here from You&Me Personalised Property Services and one of the most popular questions we get and you know on a Google search, one of the most popular questions that Google gets about buyers agencies: how much do buyer’s agents cost?
So I guess I wanted to have a general chat around fees associated with the buyer’s agents.
What is our buyer’s agency fee?
A fee based on a percentage
I guess in particular our fees for service. We charge a percentage, and this percentage is based on the property cost.
We do know some buyer’s agents and some companies that do a tiered structure. They do a set fee, they do, you know, 0 to $500,000. It’s going to be a set fee of a certain amount, you know, 500 to $1,000,000 it’s going to be another set fee of a decent amount.
Advocating for equitable fees on behalf of our valued clients
But what we found when we came into the market was that there is a lot of that. And we believe that it’s unfair for some of you guys out there to be paying a set fee when you’re not at 500,000, you’re not at the million-dollar mark.
The reason for it is because these fees and emptied structures are set up to favor the buyer’s agent in the upper echelon of those fees.
So, you know, if you’re buying a $300,000 property, you don’t want to be paying a $500,000 set fee. If you’re buying a $550,000 property, you don’t want to be paying the million-dollar set fee.
So what we found was fair and we are all about being fair and reasonable in our company. We want to look after you.
Is our pricing model as effective as it seems?
You don’t get charged fees for a property you won’t buy
Obviously, we work, we get paid, we do a professional job, we save you money, time, stress and potential mistakes. But at the same time, we want to be able to give you a wholehearted experience from us to you.
Now, how do we think that that’s fair? Well, we think that’s fair by offering a percentage-based fee.
The advantage is if you’re paying $430,000 for that property, you’re only paying us percent. You’re not paying a set for 500,000.
What’s the disadvantage?
The disadvantage for us is, is the fact that even though we’re coming from the heart and we want to look after you, you’ve met us for 5 minutes and you’re like, well, Heath, if you’re going to charge us percentage based, based on the property cost and the question we always get in our discovery meetings is, well, if it’s a percentage base, wouldn’t you just make us pay more?
That’s a great question! And it works in theory, but let’s break it down. If we were to make you pay an extra $20,000 than what you thought you could get it for:
- First reason: our reputation wouldn’t last long. We’re a five-star agency and we continue that. And we pride ourselves on that
- Second reason: to make you pay an extra $20,000 in a property, you actually pay us somewhere in the vicinity. And this I won’t to give our fee away now (get in touch with us to find out). But you buy somewhere in the vicinity of, you know, $500, anywhere from $300 to $500.
We prioritise long-term relationships with our clients
Now, that’s not really worth us making you pay extra. We would rather smash it out of the park. We would rather get the five-star review. We would rather you tell your friends, your family and give us referrals and we would rather you continue to be our mates, continue to be our friends. We want to be the best buyer’s agents in Perth, and in Australia!
We want you to succeed in your property journey!
We would want you to come back for your second and third. And sometimes one of our clients has come back for his fifth property with us.
So when it comes to fees, it’s not in our best interest to make you pay more. And we feel like the fairest way to do it is a percentage base fee. So you’re not paying that upper echelon set fee when you’re not purchasing that kind of price property.
Get in touch with us today
If you want to know about fees, you only know that anything at all with the Perth property market or if you just want to have a chat to us, reach out, give us a call, text us, email us and go on our website.
Until next time, happy investing and we speak soon.