How much does a buyer's agent cost in Australia?
There is no set price for a buyer's agent in Australia. The law does not fix the fee, so each firm sets its own. Most firms charge a fixed fee, a share of the purchase price, or an upfront amount plus a fee when you buy. To compare quotes, look at the total you would pay, with GST, for the same work.
By Ankit PaliwalUpdated
What are the main ways buyer's agents charge?
A fixed fee is a set dollar amount, agreed up front. A percentage fee is a share of the price you end up paying, so it rises with the price. Many firms mix the two. They charge an upfront amount when you sign, then a larger amount when you buy.
Some firms also offer a smaller service, such as negotiation only or bidding at an auction, for a lower fee. NSW Fair Trading notes that the fee can be fixed or a share of the price, and that it is not set by law. That means two quotes for the same brief can look very different.
What should a fee quote spell out?
A clear quote lists the work included, the total fee, whether GST is included and when each part is due. It should say what happens if you stop early or no property is bought. It should also say which costs sit outside the fee. Common extras include building and pest reports, strata reports, legal work and travel.
Ask whether the firm receives money from anyone else, such as a developer or a lender it refers you to. Those payments can sit alongside a low fee and pull the firm's interests away from yours. In NSW, agents must declare conflicts of interest. Get the answer in writing.
Can you claim the fee on tax?
For a rental property, the ATO treats costs of finding and buying the property as buying costs. They are generally not claimed as a rental deduction in the year you pay them. The ATO lists fees paid to an agent among the incidental costs that can form part of the cost base. The cost base is the figure used to work out capital gains tax when you sell.
That can lower the taxable gain later, but it does not cut your tax this year. Keep the invoice and the agreement with your purchase records. A registered tax agent can confirm how the fee applies to you.
| Fee model | How it is worked out | What to check |
|---|---|---|
| Fixed fee | A set dollar amount | Whether it changes if your budget or brief changes |
| Percentage fee | A share of the final price | Whether a higher price raises the fee, and any cap |
| Upfront plus success fee | Part when you sign, the rest when you buy | Whether the upfront part is refunded if you do not buy |
| Single service | One task, such as auction bidding | Exactly where the service starts and ends |
Comparing a mixed fee with a percentage fee
- Firm A charges $4,000 when you sign and $10,000 when you buy, both plus GST: (4,000 + 10,000) x 1.1 = $15,400.
- Firm B charges 1.9% of the price, GST included. At $650,000 that is 0.019 x 650,000 = $12,350.
- At $850,000, Firm B's fee is 0.019 x 850,000 = $16,150, so Firm A is now the lower quote.
- If no property is bought, Firm A keeps the upfront $4,400 unless the agreement says it is refunded, while Firm B charges nothing.
For investors
The fee is one line in a much larger budget.
On an investment purchase, the fee sits beside stamp duty, legal costs, loan costs and inspections. A small saving on the fee matters less than the price you pay and the property you pick. Compare what each firm does to protect both. Then ask how it measures the result after settlement, so you can judge the fee against the work done.
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