How much does a buyers agent cost in Sydney?

Before you engage a buyers agent, you should know exactly how they charge, what the fee covers and what you would pay if you do not buy. This guide explains the two ways buyers agents in Sydney charge, what to check in an engagement agreement, and how the fee is treated for tax.

The short answer

Buyers agents in Australia charge either a fixed fee or a percentage of the purchase price, depending on the service and scope. Ask for the fee, GST and inclusions in writing before you commit. For an investment property the fee is usually treated as a capital cost, not an immediate deduction, so confirm with a tax agent.

Fixed fee vs percentage

	Fixed fee	Percentage of the purchase price
How it is calculated	An amount agreed before the search starts	A percentage applied to the final purchase price
What it usually includes	The scope set out in the agreement, whatever the price	The scope set out in the agreement; the amount is known only once you buy
What to check	GST, inclusions, when each part is payable, what happens if you do not buy	The rate, GST, inclusions, when it is payable, what happens if you do not buy

Some agreements split the fee into an engagement fee, paid when you sign, and a success fee, paid when you buy. Ask which parts are refundable.

What the fee buys

On a full acquisition, the fee pays for the work that decides what you buy and what you pay for it:

• Off-market search. Access to properties that selling agents offer privately before a public campaign. See our guide to finding off-market properties in Sydney.
• Independent valuation. Each property is priced against recent comparable sales, not the agent’s guide.
• Due diligence. Contract review with your solicitor, building and pest, and strata reports where they apply.
• Negotiation or auction. A firm limit agreed with you, then negotiation or auction bidding on your behalf.

What to check in an engagement agreement

• The fee. Fixed or percentage, the amount or rate, and when each part is payable.
• GST. Whether the quote includes or excludes it.
• The scope. What the service covers, from search to settlement, and what it does not.
• Payments from the selling side. Whether the agent accepts any commission, referral fee or other payment from the vendor, a developer or a selling agent. A buyers agent who does cannot be fully independent.

When the fee pays for itself

Two of our published purchases show where the value can come from:

• Newtown. A corner terrace was offered to us off market at about $1.9M. Our feasibility said the margin did not justify it, so we walked away, then bought the same terrace before auction for $1.75M. Read the Newtown case.
• Marrickville. We secured a freehold warehouse for $3.769M, about $531,000 below the vendors’ expectation of around $4.3M, using comparable sales evidence. Read the Marrickville case.

These are results on individual purchases, not guaranteed savings. Every property, vendor and market is different. See all our selected acquisitions.

Are buyers agent fees tax deductible?

For an investment property, the ATO lists buyers agent fees for finding a rental property among the costs you cannot claim against rental income (ATO: rental expenses). They may form part of the property’s cost base for capital gains tax (ATO: cost base of assets). For a home you live in, the fee is a private cost. Confirm how it applies to you with a registered tax agent.

How LN charges

LN Property Buyers quotes its fee in writing before any engagement begins, with the scope and GST set out, so you know what you will pay before the search starts. Ask for a written fee quote.