One of the first calls we get most weeks goes something like this. Someone has decided to buy on the Coast, they have asked two or three buyers agents for a quote, and none of the numbers line up. One quoted a percentage. One quoted a single fixed figure. The third wants a payment now and a bigger one later. So the real question behind “how much does a buyers agent cost on the Central Coast” is usually this: how do I compare quotes that are built in completely different ways?
That is what this post covers. We will walk through how fees are usually structured, what pushes the price up or down, the costs that sit outside the agent’s fee altogether, and the questions worth asking before you sign anything. We will not quote you a market average, because fees vary a lot between agencies and a number pulled from a Sydney or Brisbane article tells you very little about the quote sitting in front of you.
The price depends on how the fee is built
Most buyers agent fees in Australia fall into one of three shapes. Knowing which one you are looking at is half the job, because two quotes can look far apart on paper and end up close once you work out what you would actually pay on your likely purchase price.
A percentage of the purchase price
Here the agent takes a set percentage of whatever you end up paying for the property, usually plus GST. It is simple to understand. The catch is that the fee climbs as the price climbs, even if the work involved stays much the same. Buying a family home in Kariong that costs twice as much as a unit in Gosford is rarely twice the work, but a percentage fee charges you as if it were.
There is also a quieter issue. If the agent earns more when you pay more, their pay and your interests are pulling in slightly different directions at the negotiating table. Plenty of percentage agents are scrupulous about this. It is still worth knowing the incentive is there.
A flat or fixed fee
A flat fee is one agreed figure for an agreed scope of work, set before the search starts. You know the number on day one and it does not move because the vendor held out for more. This is how we work: we are a flat fee buyers agency, and we built our pricing that way because it keeps the conversation about getting you the right property at the right price, not about the size of our cheque.
If you want to see what our flat fee covers and how it is paid, the details are set out on our buyers agent fees page.
An engagement fee plus a success fee
Many agencies split the cost in two. You pay an engagement fee (sometimes called a retainer) when you sign up, and a success fee when you buy, often at exchange or settlement. The success fee itself might be a flat figure or a percentage, and the engagement fee is sometimes deducted from it. That last detail matters a lot. A quote with a large engagement fee that is credited against the final bill can cost less overall than one with a small engagement fee that is not.
The scope of the job moves the price more than the postcode
A full search from brief to settlement is a very different job from turning up to bid on one property you have already found. Most agencies price those separately, so make sure every quote you compare is for the same work.
On the Central Coast the search itself can be large. A brief that could land anywhere from Umina Beach to Lake Haven covers a lot of driving, a lot of inspections and a lot of very different housing: older fibro cottages near the water, newer estates around Woongarrah and Hamlyn Terrace, acreage out at Yarramalong or Mangrove Mountain. A tight brief (say, three bedrooms within walking distance of Woy Woy station) usually means less legwork than “somewhere with a bit of land, we’re flexible”. Neither is wrong. They just take different amounts of time, and an honest quote reflects that.
Things that commonly sit inside a full service quote:
- working out your brief and budget with you
- searching on market and off market listings
- inspecting properties on your behalf
- checking comparable sales so you know what a place is really worth
- negotiating or bidding at auction
- coordinating with your conveyancer, lender and building inspector through to settlement
If a quote looks cheap, check which of those it leaves out.
Some costs are never part of the agent’s fee
This one surprises people. A buyers agent fee covers the agent’s work and nothing else. You will still pay transfer duty (stamp duty) to Revenue NSW unless you qualify for a concession, plus conveyancing or solicitor fees, building and pest inspections, any strata report for a unit, and your lender’s costs. Some of those are paid whether or not the purchase goes ahead, for example an inspection on a house you then walk away from.
When you are working out your total budget, put these in their own column. Your conveyancer and lender can give you real figures for your situation, and Revenue NSW has a duty calculator on its website.
Five questions that make two quotes comparable
When we help people compare proposals (including ones from other agencies), these are the questions that tend to sort things out quickly:
- Is GST included in every figure, or added on top?
- When is each part of the fee payable, and is any of it refundable if I stop the search or do not buy?
- Is the engagement fee credited against the final fee?
- What exactly is included, and what costs extra (for example auction bidding on a second property, or searching outside the agreed suburbs)?
- Do you receive any payment from sellers, selling agents or developers?
The last answer should be a flat no. A buyers agent is meant to work only for you, which is the key difference we explain in our post on how a buyers agent differs from a selling agent. Also read the agreement for any exclusivity period and how you can end it. Get every answer in writing before you sign.
Paying a buyers agent is not always the right call
We would rather tell you this upfront. If you have bought in the same suburb before, you already know what things sell for, and you are comfortable negotiating, a full service arrangement may be more help than you need. Some people in that position just want someone to bid for them on auction day, and that is a smaller, cheaper job.
Where the fee tends to earn its keep is when you are buying from outside the area, when you are short on time for weekend inspections, or when you are worried about paying too much or missing problems with a property. We go through those situations in more detail in our article on the benefits of using a buyers agent. The honest test is simple: would the price you save, the mistakes you avoid and the time you get back be worth more to you than the fee?
Common questions about buyers agent fees
Do you pay a buyers agent upfront?
It depends on the agency. Some charge an engagement fee when you sign, with the rest due when you buy, while others ask for most or all of the fee at exchange or settlement. Ask exactly when each payment falls due and whether the upfront portion is refundable or credited against the final bill.
Why are buyers agents so expensive?
A full search can involve weeks or months of inspections, sales research, negotiation and settlement coordination, and the agent only gets paid in full if a purchase goes ahead. The fee also covers licensing, insurance and the time spent on properties you never end up buying. Whether it is expensive really depends on what it saves you.
Is a buyer’s agent worth the money?
For some buyers, clearly yes, and for others it is more help than they need. It tends to pay off for people buying from outside the Central Coast, buyers who are short on time, and anyone uneasy about negotiating or bidding at auction. If you know the suburb well and are confident at the table, a smaller service such as auction bidding may suit you better.
How do buyers agents get paid?
Buyers agents are paid by the buyer who engages them, not by the seller. Payment is usually a flat fee, a percentage of the purchase price, or an engagement fee followed by a success fee. A buyers agent should not take commissions or referral payments from sellers or selling agents.
Who pays the buyers agent, the buyer or the seller?
The buyer. The seller pays their own selling agent, and the buyer pays the buyers agent. That separation is the whole point, because it means the buyers agent answers only to you.
Is a buyers agent fee tax deductible?
It depends on whether you are buying a home to live in or an investment property, and on how the tax rules treat that cost in your situation. We are not tax advisers, so check with your accountant before you assume either way.
If you would like a straight figure for your own purchase, have a look at how our flat fee pricing works, or call us on (02) 4302 4123 and tell us what you are looking for. We will tell you what the job involves and what it costs before you commit to anything.
