How much does a buyer's agent cost in Australia?
Most Australian buyer's agents charge either a percentage of the purchase price, commonly between 1.5% and 2.5%, or a fixed fee that usually falls between $8,000 and $30,000 for a full search-and-negotiate service. Negotiation-only and auction-bidding services cost considerably less. Which works out cheaper depends almost entirely on your price bracket.
The four ways buyer's agents charge
| Fee model | Typical range | Suits you when |
|---|---|---|
| Percentage of purchase priceA share of what you pay for the property, invoiced at settlement. | 1.5% to 2.5% | Buying in a lower price bracket, where a percentage lands below a typical fixed fee. |
| Fixed fee, full serviceOne agreed price to search, appraise, negotiate and settle, whatever you buy. | $8,000 to $30,000 | Buying at a higher price point, or you want certainty about the cost from the start. |
| Negotiation or auction bidding onlyYou find the property; the agent appraises it and negotiates or bids for you. | From around $500 to a few thousand | You are confident finding property yourself but want an expert on the price. |
| Engagement fee or retainerPaid at signing to start the search, then deducted from the final fee. | Commonly $1,000 to $5,000 | Charged by most agencies on top of one of the models above, not instead of them. |
Ranges reflect what Australian buyer's agencies commonly advertise. They are a guide for budgeting, not a quote. Individual agencies price differently by city, price bracket and how much of the process they handle.
Percentage or fixed fee: where the crossover sits
A percentage fee costs more as the price rises; a fixed fee does not. At a 2% rate, a $20,000 fixed fee is the break-even point on a $1,000,000 purchase. Below that price the percentage is usually cheaper, above it the fixed fee is.
| Purchase price | At 1.5% | At 2.0% | At 2.5% |
|---|---|---|---|
| $750,000 | $11,250 | $15,000 | $18,750 |
| $1,000,000 | $15,000 | $20,000 | $25,000 |
| $1,500,000 | $22,500 | $30,000 | $37,500 |
| $2,000,000 | $30,000 | $40,000 | $50,000 |
Percentage fees carry an obvious tension: the agent's fee grows the more you pay. Ask how the agency handles that, and whether they will cap the fee at your budget. Some do. Run your own numbers in the fee calculator .
What the fee usually covers
Normally included
- Defining your brief and shortlisting suburbs
- Searching listings and, where they have access, off-market stock
- Inspecting and appraising properties on your behalf
- Comparable-sales analysis to set a fair price
- Negotiating with the selling agent, or bidding at auction
- Coordinating the contract through to settlement
Usually charged separately
- Building and pest inspections
- Conveyancing and legal fees
- Strata or body corporate report fees
- Independent valuations
- Stamp duty and government charges
- GST, where it is quoted separately
Questions worth asking before you sign
- What is the total cost in writing, including the engagement fee and GST?
- Is the fee a percentage or fixed, and will you cap it at my budget?
- What happens to the engagement fee if I do not end up buying?
- How many properties did you buy in my target suburbs in the last twelve months?
- Do you act only for buyers, or do you also sell property?
- Are you licensed in this state, and what is your licence number?
- Do you receive any commission, referral fee or rebate from developers, sellers or other services?
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Buyer's agent fees: common questions
- How much does a buyer's agent cost in Australia?
- Most charge either a percentage of the purchase price, commonly 1.5% to 2.5%, or a fixed fee that typically ranges from about $8,000 to $30,000 for a full search-and-negotiate service. A negotiation-only or auction-bidding service costs far less, often starting a few hundred dollars. Most agencies also charge an engagement fee at signing that is deducted from the final invoice.
- Is a fixed fee cheaper than a percentage?
- It depends on your price bracket. At a 2% rate, a $20,000 fixed fee breaks even on a $1,000,000 purchase: below that the percentage is usually cheaper, above it the fixed fee is. A fixed fee also removes the awkward incentive where the agent earns more the more you pay.
- Do buyer's agent fees include GST?
- Not always. Fees are often advertised excluding GST, so a quoted $18,000 fee is $19,800 once 10% GST is added. Always confirm whether a quote includes GST before you compare agencies.
- Can I claim a buyer's agent fee on tax?
- For an investment property the fee generally forms part of the cost base of the asset rather than being immediately deductible, which affects capital gains tax when you sell rather than your annual return. Treatment depends on your circumstances, so confirm it with your accountant or the ATO.
- Who pays the buyer's agent, me or the seller?
- You do. A buyer's agent works for you and is paid by you, which is what separates them from the selling agent, whose fee comes from the vendor. Be cautious of any arrangement where a buyer's agent is also paid by a seller or developer, and ask them to disclose it.
- What happens to the fee if I don't buy anything?
- This varies by agreement and is worth pinning down before you sign. Engagement fees are often non-refundable because they pay for search work already done, while the balance is usually only payable on a successful purchase. Ask for the terms in writing.