There are two types of fee structures that buyer’s agents use. One is a percentage based on the purchase price and the other is a flat fee based on the purchase price.
Depending on the purchase price the average cost ranges from 1.5 to 2%. This is a very small investment based on the size of your property investment.
Something that you must consider before engaging in the services of a buyer’s agent is to look them up and see how long they have been practising. There are many inexperienced people setting up a business and calling themselves buyer’s agents. They may have purchased a property themselves, done a short course and have little or no negotiation skills. Negotiation is a skill and not something everyone can master.
If the buyer’s agent, you are considering engaging is located in NSW you can do a simple license check. Click here to check. The license check will confirm whether the agent’s license is current. Simply type in the agent’s name and hit enter. Click on the current license and below their name, it will show you when they were first granted a qualification. Look for the start and end dates.
Checking the Credentials of an Agent Could Save you $10,000’s of dollars.
Everyone has to learn and start somewhere but this should not be at your expense. A highly skilled negotiator will never agree to negotiate their fee and if they do dismiss them. Why? You are the better negotiator.
“If an agent reduces their fee, run. You are a better negotiator than they are, and you won’t benefit as they lack experience. Just do it yourself or find an agent with a minimum of, 5 year’s experience”.