So you’re looking to purchase a property, and you understand the competitive edge that a property professional can offer.
As we deal in property every minute of our working week, we buyer’s agents knows where to find the best properties (including off-market and pre-market options that the general public doesn’t have access to), what to look for and the questions to ask during an open inspection, and how to negotiate the best possible price.
The best will also maintain close relationships with local agents to ensure that their clients get first look at new properties, that they know all they need to know about their potential purchase, and that they only ever pay a fair price.
But as a prospective buyer, what can you expect to pay for all this assistance?
How buyer’s agent fees work
First things first: the question of ‘how much does a buyer's agent charge?’ is a little like asking ‘how long is a piece of string?’
Buyer’s agent fees can vary greatly depending on their experience, the property you’re looking for and the method they use to charge. Understanding this last factor is important, as it can make a big difference to the fee you ultimately pay.
Generally speaking there are three main ways that buyer’s agents charge their fees:
Fixed fee
The simplest and most transparent option, a fixed fee is exactly what it says on the packet: the buyer’s agent charges a single fee for their services. This fee won’t change, no matter what the final purchase price is.
At Treak we’re proud to offer a fixed fee pricing model, which means you always know exactly what you’ll pay from the moment you ask for our help. The fee we charge is based on your brief – we determine how difficult it will be to find the exact property that you are looking for, and price our services accordingly. We firmly believe that this model is the fairest for the buyer – you get complete clarity and no surprises.
Tiered fixed fee
The tiered fixed fee model works in a similar way to the fixed fee model, but the fee goes up as the property price increases.
While this is a relatively common pricing structure, at Treak we don’t believe that it’s a particularly fair one – higher priced properties aren’t necessarily more difficult or laborious to secure. In a way we feel it’s a little opportunistic; a practice of charging more simply because the customer has more money to spend. For this reason we don’t feel that the tiered fee structure works for us or our clients.
Commission
The third buyer’s agent pricing model is a commission structure, in which an agent charges a percentage of the property’s sale price, usually 1-3%. Keep in mind that while you will want to secure a lower commission percentage, the level of service you receive may be lower too. You should always balance the price of the service with the quality of that service.
At Treak we see these commissions as similar to the tiered price model: linking fees to the price of the property rather than the value of the service makes it more difficult to tell whether you’re getting true value, or are simply being charged more because you’ve got a larger budget.
Looking to buy? We’re ready to help!
At Treak we have the industry knowledge, experience and network to find and secure your ideal property. Best of all, we do all this for a single, simple price, no matter the ultimate price of the property, nor how much time and effort it takes.
If you're ready to receive a personalised quote for our buying services tailored to your unique needs, don't hesitate to reach out to us today for a free 20 minute consultation. We're here to make your property journey as smooth as possible.
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