Buyers Agent Fees in Australia: Simple, Neutral Overview

Where Buyers Agent Fees Fit in Your Overall Costs

Buyers agent fees are one potential cost among many when buying property in Australia. Other common costs can include stamp duty, legal fees, building and pest inspections, lender application charges, valuation fees, moving costs and, in some cases, ongoing ownership costs.

It can be useful to look at the total cost of buying (including any buyers agency fee, if you choose to use a buyers agent) and check that it fits within your agreed budget and borrowing capacity, in consultation with your lender and advisers.

How Much Do Buyers Agents Charge in Practice?

There is no single “standard” or regulated fee that applies to all buyers agents. Different firms set their own buyers agency fees based on their business model, experience, scope of work and typical price range. Some focus on fixed fees, others on percentage-based buyers agent commission, and some use a combination.

For that reason, looking for an “average” number can be less helpful than asking each firm to provide a clear, written explanation of:

• what services are included in the fee,
• when any fee is payable, and
• how their buyers agent cost changes (if at all) with the purchase price.

You can then discuss those details with your legal, tax or financial advisers to decide whether a particular structure is suitable for you.

Common Buyers Agent Fee Models (Short Overview)

In practice, most buyers agents in Australia use one of three broad models, or a variation of these:

• Fixed fee: a set dollar amount for an agreed scope (for example, full search and negotiation, or negotiation-only). The fee does not change if you buy slightly higher or lower within your agreed range.
• Percentage of purchase price: a fee calculated as a percentage of the final purchase price (sometimes called a buyers agent commission). The dollar amount increases as the purchase price increases.
• Retainer + success fee: a smaller upfront retainer when you sign, plus a success fee on exchange or settlement if you buy within an agreed period. The success fee may be fixed or percentage-based.

None of these models is “right” or “wrong” in isolation. The key is understanding what you are paying, when, and for which services, and then deciding, with professional advice if needed, whether that structure is appropriate for your situation.

In all cases, buyers agents are paid by the buyer under a written agreement. The selling agent is paid separately by the vendor. If you are ever unsure how a particular buyers agency fee, retainer or success fee works, you can ask the agent to explain it in writing and consider obtaining independent advice before proceeding.

Are Buyers Agent Fees Tax Deductible?

People sometimes ask whether buyers agent fees are tax deductible. The answer can depend on a range of factors, including your personal circumstances and whether the property is being acquired as a home to live in or as an investment. These are tax questions, not real estate questions.

This page does not provide tax advice and does not state whether any particular fee is or is not deductible. Before assuming that any buyers advocate fees or charges are tax deductible, you should speak with a qualified tax adviser who understands your situation.

Our separate overview on buyers agent fee tax deductibility simply summarises some of the general issues you might wish to raise with your accountant or tax adviser. It is still not personal advice.

Key Questions to Ask About Buyers Agent Fees

When you review a buyers agency proposal, some neutral, fee-related questions you might consider asking include:

• Is the buyers agency fee fixed, percentage-based or a mix?
• What is included – full search, shortlisting, negotiation, or auction bidding only?
• Is there an upfront retainer? Is any part refundable if you do not buy?
• How long does the agreement run for, and what happens if you have not purchased by then?
• Are there any additional charges (for example, out-of-area searches, extra inspections or additional auctions)?

You can adapt our property buyer checklist to include questions that matter to you, and discuss them with your legal, tax or financial advisers if needed before signing a buyers agency agreement.

Buyers Agent Fees in NSW and Sydney

In New South Wales, including Sydney, buyers agent fees are generally negotiated privately between the buyers agent and the client. Different firms may charge different levels of buyers agent fees in NSW depending on their location, service model and the type of properties they focus on.

If you are comparing buyers agent Sydney fees, it can be helpful to look at the total cost alongside the services and experience offered, rather than comparing fee percentages or fixed amounts in isolation. Independent advice can help you weigh up those considerations in light of your broader plan.

How This Fees Page Relates to Our Buyers Agent Overview

This page focuses on how buyers agents typically charge. For a broader explanation of what a buyers agent does, how they differ from selling agents, and who might use them, you can read our What Is a Buyers Agent? guide. Together, these pages can help you clarify whether engaging a buyers agent fits with your overall approach, in consultation with your professional advisers.