We’re looking to use a buyer’s agent and would like to get some advice around their fees. What’s considered a reasonable range for commission and is it normal to have to pay a fee upfront?

Hi Toby,
Buyers advocates can be a really good investment for people who are either time poor or unsure of the operating conditions of the market.
They will charge around $500 to bid for you at an auction and between $5,000 and $25,000 for a full service strategy and property search.
It is normal to pay for the strategy report upfront and then pay a percentage of the purchase price for a successful result.
As an experienced negotiator and having no emotion in the deal, a good buyers advocate will repay their value through the savings they get for you and the time you save.
Preferably getting a strong referral from a trusted friend or associate is the best way to find a good one.
Good luck with your purchase
Regards
Scott

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Hi Toby,
I've used a buyers agent for years and think it's a great idea. And yes, it can be a bit daunting paying someone before anything has really happened.

However, I work with this particular buyers agent (and know of others who do the same) who charge an initial 'engagement fee' of $1000 so they can put the wheels in motion and start searching for properties for you.

Once they find a property, they present it and if you decide to buy it, they basically do all the work and the total fee needs to be paid of $9000-10000. Your initial engagement fee is taken off final payment, so all in you will be expecting to pay about $10,000 for a good buyers agent.

The thing to consider is talking to some of their clients, or seeing the results. They are usually happy to share details of successful clients who have worked with them before. But try to speak to someone who has multiple properties through them, so they know various circumstances, and not just a one off.

In the end, the buyers agent should be able to secure a property under value and you will make their fee back anyway. That's one main reason of using a buyers agent in the first place. Happy to share my experience with you by email if you're interested. I hope that helps you.