Buyers agent fees in Australia usually follow one of four models: a fixed fee, a percentage of the purchase price, an hourly rate, or a mix of those. A buyers advocate is the same role, and is paid by you, not by the seller. Johnson Property Co charges a fixed fee. The amount is agreed up front. It is not paid up front, and it is never a percentage of the price you pay for the property.
If you are comparing buyers advocate cost, start with what is included and when the fee is agreed. A low headline number that leaves out the search, the auction, or the contract work is not the same service as a complete engagement.
What a buyers advocate does
A buyers advocate represents the buyer in a property purchase. The work can include setting a brief, finding and inspecting properties, checking homes that are advertised and homes offered off-market, guiding price, negotiating with the selling agent, bidding at auction, and taking the purchase through to exchange.
Buyers use an advocate when they are new to the market, when they do not know the area, or when they cannot spend the week on listings, inspections, and negotiation. An advocate who knows the local market can often reach properties before they are publicly advertised. That is a real advantage. It is not a promise that every home you want will be available off-market.
What changes buyers agent fees
There is no single buyers advocate cost across Sydney. These are the factors that move the fee.
- Scope. A complete search, with inspections and negotiation, costs more than auction bidding on a home you have already chosen, or negotiation on a property you have already found.
- Location and demand. Fees differ by market. An advocate working a competitive Sydney pocket is not priced like one in a quieter market.
- Experience. A licensed advocate with recent purchases in the suburbs you want will usually cost more than someone new to the work. Ask what they have bought there, not only what they charge.
- How the fee is calculated. If the advocate charges a percentage of the purchase price, a more expensive property produces a higher fee. A fixed fee does not rise because the price rises.
A higher fee can still be the better value if the scope is wider. It can also be money poorly spent if the brief is vague. The fee, on its own, does not mean you will pay less for the property.
How buyers advocates usually charge
Fixed fee
A fixed fee is a set amount for a defined service, agreed before the work starts. You can budget for it. It does not increase if the property sells for more than you expected, and the advocate is not paid more when you pay more. This is the model Johnson Property Co uses.
Percentage of the purchase price
Some advocates charge an agreed percentage of the price you pay. A range often quoted for that model is 1 to 3 per cent of the purchase price. On a $500,000 purchase, 1 to 3 per cent is $5,000 to $15,000. On a $1,000,000 purchase, 3 per cent is $30,000. Those figures illustrate a percentage model only. They are not Johnson Property Co’s fee.
A percentage fee rises with the purchase price. Ask about that before you sign. The advocate earns more when you pay more for the property.
Hourly rate
An hourly rate can suit a short, defined task, such as a second opinion on one property. It is a weak fit for an open-ended search, because the bill grows with the hours unless you agree a ceiling in writing.
A mix of models
Some engagements combine the models above. For example, a fixed amount for the initial work and a further charge tied to the purchase. Read the agreement so you know which part can move, and get that mix in writing before you start.
How Johnson Property Co charges
Johnson Property Co charges a fixed fee for the service you choose. The fee is agreed up front, before any search or negotiation begins. It is not paid up front. It is never a percentage of the purchase price.
The amount depends on the service. Johnson Property Co confirms it with you before you engage. The services are:
- Complete buyers agency service. Consultation, sourcing of on-market and off-market properties, inspections and due diligence, negotiation, and the purchase. On this fixed-charge service, the number of properties reviewed is not capped by a set number of hours.
- Negotiation only. For a property you are already committed to pursuing. Johnson Property Co handles the contract path and negotiates the terms for you.
- Auction bidding. Before auction day the walk-away price is agreed. On the day, Johnson Property Co bids for you.
If you are still deciding whether to buy, where to buy, or whether to use an advocate, book a free strategy session. For purchases in the Inner West, see the Inner West buyers agent service. The office is in Petersham.
What to have in writing
- The service you are buying, and what is not included.
- The fee, and confirmation that it is fixed.
- When the fee is agreed, and when it is payable. Agreeing a fee up front is not the same as paying it up front.
- Whether the fee changes if you buy above a certain price. Under a fixed fee, it should not.
- The name of the licensee who will do the work, and their New South Wales licence number.
What the fee is, and is not, buying
You are paying for time, a clear reading of price, and a professional whose client is you. The selling agent acts for the vendor. A buyers advocate can set aside homes that do not match the brief, inspect shortlisted properties, and negotiate or bid so you are not doing that alone.
Off-market and pre-market properties widen the set of homes you see. They do not replace a written brief or a price limit based on comparable sales.
An advocate can take on the pressure of auctions, agents, and paperwork. You still decide what you will spend. A sound result is a property that fits the brief, on terms you understood before you signed. Do not treat the fee as something a discount will automatically repay.
Buyers agent fees: short answers
How much does a buyers advocate cost?
It depends on the service and the fee model. Some advocates charge a percentage of the purchase price, often quoted at 1 to 3 per cent. Others charge a fixed fee or by the hour. Johnson Property Co charges a fixed fee, agreed up front, not paid up front, and never a percentage of the purchase price. The amount is confirmed with you before you engage Johnson Property Co.
What do buyers agent fees cover?
They pay for your own advocate. Depending on the agreement, that can be the search, inspections, pricing advice, negotiation, auction bidding, or the path from brief to purchase. Compare scope. A fee that excludes the search is not the same product as a complete service.
How much do buyers advocates charge?
There is no single charge across the industry. Ask what is included, when the fee is agreed, when it is payable, and whether it rises if the purchase price rises. A percentage fee rises with the price. A fixed fee does not.
Are buyers agent fees the same as buyers advocate fees?
In Australia the two titles are used for the same role: a licensed professional engaged by the buyer. Compare buyers agent fees and buyers advocate fees on scope and on how the fee is calculated, not on the job title.
Agree the fee before you start
Bring the suburbs, the budget, and the job you want done: a full search, negotiation only, or auction bidding. The free strategy session is where you confirm the scope. The fixed fee is agreed before you engage Johnson Property Co. The percentage examples above are not a quote.
Johnson Property Co, Petersham. Phone 1800 413 747. NSW licence 20456819.
