What buyers agents charge, how the two fee models differ, and why the structure matters as much as the number.
Adelaide buyers agents charge in one of two ways. Either a percentage of what you end up paying for the property, commonly somewhere between 1.5% and 2.5%, or a fixed fee agreed in writing before the search starts. The gap between those two models is not only about cost. It changes what your agent is working toward.
Fees are the question buyers ask last and worry about first. It is also the part of the industry that is hardest to compare, because agencies present their pricing differently and few publish anything at all.
Below is how each model works, what a fee usually covers, and the structural difference between the two.
A percentage fee is calculated on the purchase price. If the fee is 2% and you buy at $800,000, the fee is $16,000. Buy at $1,000,000 and the same agreement costs you $20,000 for the same work.
A fixed fee is agreed as a dollar figure before the search begins. It is the same whether you buy at the bottom of your range or the top of it.
Both models are legitimate and both are used by good agents across Adelaide. The difference shows up at one specific moment.
Negotiation is a critical part of any purchase and it is where we do some of our most valuable work for a client. It is also the point where the two fee models pull in different directions.
Under a percentage agreement, a lower purchase price means a smaller fee for the agent negotiating it. The structure asks them to work against their own fee every time they push the price down.
Under a fixed fee, the number you pay for the property and the number you pay us are unrelated. Whatever we save you in the negotiation is yours.
There is a calculator on our fees section that shows the two models side by side across a range of purchase prices, if you would rather see it than read about it.
We quote a fixed fee for your brief before you commit to anything. It is agreed in writing, it does not change with the purchase price, and there is no commission and no percentage anywhere in the arrangement.
The fee depends on scope. A full search from brief to settlement is a different engagement from independent pricing and negotiation on a property you have already found. Both are quoted the same way: a number, in writing, before you decide.
The fee is payable in two parts. An engagement fee when you sign, which covers the consultation and setting your search up properly, and the balance on settlement of the property you buy.
On a full search, everything from the brief to the keys. Turning what you want into a workable brief, market research at council, suburb and street level, sourcing properties including off market and pre release listings, inspecting and shortlisting, independent pricing analysis and the negotiation itself, and support through to settlement.
You can also engage us for parts of that. Research alone, or pricing and negotiation on a property you found yourself, are both quoted separately.
Conveyancing, building and pest inspections, finance and any government charges are third party costs. You pay those providers directly and they are nothing to do with our fee.
We take no fee, commission or referral payment from building and pest inspectors or from conveyancers. When we recommend one, it is because we would use them ourselves.
Some engagements carry a separate charge for attending inspections or bidding at auction, which depends on scope and distance. Anything of that kind is written into your agreement before you sign it. Nothing appears later.
It depends on what the alternative costs you, and that is a number most buyers never find out.
A recent Adelaide purchase gives a sense of the scale. The property was advertised at $600,000 to $670,000. Thirteen offers came in and the highest was $695,000. Our client bought it at $650,000, which is $45,000 below the top bid, by building the offer around what the vendor needed from the sale.
Eight buyers offered more money and did not get the house. On that one purchase the saving was several times the fee. It will not go that way every time, and anyone who promises it will is overselling.
What is reliably true is that the fee covers considerably more than the negotiation. Properties are sourced for you, including off market and pre release homes that never reach the portals. Research tells you whether the suburb and the street hold up before you commit anything. Every property is appraised independently against verified comparable sales, so you know what it is worth before you offer. Due diligence is managed properly instead of being squeezed into the days after you sign. And then the negotiation is run by someone who does it every week.
Whoever you engage, ask these before you sign. How is the fee calculated, and does it change with the purchase price. What exactly does it cover, and what is charged separately. When is each part payable, and what is refundable. Do you receive any payment from any other party in the transaction. And what is your licence number.
Any agent worth engaging will answer all five without hesitating. Ours is RLA 297515.
It depends on the model and the scope. Percentage based agents commonly charge between 1.5% and 2.5% of the purchase price, so the cost moves with what you buy. We quote a fixed fee for your brief before you commit to anything, so you know the number in advance instead of working it out afterwards.
Because a percentage fee grows as the purchase price grows. We would rather the cost of engaging us be a number you agreed to at the start than a figure that moves with the outcome of a negotiation we are running on your behalf.
In two parts. An engagement fee is payable when you sign the agreement, which covers the consultation and setting up your search. The balance is payable on settlement of the property you buy.
No. It is a non refundable fee covering the work that begins immediately: taking your brief, setting the search parameters and starting on the market. That is stated plainly in the agreement before you sign it.
Some engagements carry a separate charge for attending inspections or bidding at auction, depending on the scope and the distance involved. Anything of that kind is set out in your agreement before you sign, and there are no charges that appear later.
Fee information on this page applies to established property purchases. Other purchase types may be subject to different arrangements, which are disclosed and agreed in writing before engagement. Percentage figures quoted are indicative of the market and do not represent the fees of any particular agency. Your Property Strategy operates under Licence RLA 297515 and services are provided in accordance with the Land Agents Act 1994 (SA).