- How much does a buyer's agent cost in Australia?
- Most charge either a percentage of the purchase price, commonly 1% to 3% (Finder), with the industry body REBAA putting the average at 2% to 3% plus GST, or a fixed fee that runs from a few thousand dollars to about $15,000 for most homes and more for premium properties. Most agencies also charge an engagement fee at signing, typically $1,000 to $5,000 according to REBAA, which is deducted from the final fee.
- Is a fixed fee cheaper than a percentage?
- It depends on your price bracket. At a 2% rate, a $15,000 fixed fee breaks even on a $750,000 purchase: below that price the percentage is usually cheaper, above it the fixed fee is. A fixed fee also removes the incentive for the agent to let you pay more, which is why it is more common at the top of the market.
- Do buyer's agent fees include GST?
- Not always. GST is 10%, and the industry averages REBAA quotes are plus GST, so an $18,000 fee becomes $19,800. Finder notes quotes to consumers typically include GST unless the agent says otherwise, and the ACCC requires businesses to show consumers a single total price including taxes, but practice varies. Ask for the total including GST in writing before you compare agencies.
- Are buyer's agent fees tax deductible?
- Not against your income. The ATO's Rental properties 2025 guide lists buyer's agent fees among the expenses you cannot claim as a rental deduction, and says they may form part of the property's cost base for capital gains tax, which can reduce your capital gain when you sell. For a home you live in there is no deduction and, because a main residence is generally exempt from CGT, no later tax effect. This is general information, not tax advice.
- What is an engagement fee, and do I get it back if I do not buy?
- It is a retainer paid at signing to start the search, deducted from the final fee. REBAA says a typical engagement fee is $1,000 to $5,000 and that most of the fee should only be payable when the contract goes unconditional or at settlement. Whether it is refundable if you never buy is set by the agreement, not by law: some agencies advertise a refundable retainer, others treat it as payment for search work already done. Get the terms in writing.
- Who pays the buyer's agent, me or the seller?
- You do. A buyer's agent, or buyer's advocate, is a licensed agent who acts for the buyer for a fee, which is what separates them from the selling agent, whose commission comes from the vendor. Be cautious of any buyer's agent who is also paid by a seller or developer, and ask them to disclose any rebates or commissions; in NSW the agency agreement must list them.
- Are buyer's agent fees regulated or negotiable?
- They are negotiable. Consumer Affairs Victoria says commissions and fees are not set by law and can be negotiated, and Finder notes fees are not regulated in any state. What the law does regulate is who can act as an agent, which is why checking the licence matters more than the rate card.
- Do buyer's agents charge less for auction bidding or negotiation only?
- Yes. Where you have already found the property, agencies charge much less than for a full search. As one published example, OwnHome charges $500 plus GST to attend an auction with a $1,000 plus GST success fee, and about 0.9% plus GST, or a fixed fee, for appraisal and negotiation. Ask for a fixed quote for the exact scope you need.