How our fees work
The primary purpose of a success fee for buyer agents is to ensure they get the best price for the buyer. Success fees create a legal contract between the buyer and the buyer agent, where a fiduciary duty ensures that a purchase is transacted at the lowest possible price. Misalignment of interests occur when a buyer deals directly with a vendor or seller agent, as the seller agent has a legal duty to get the highest price for the seller.
The overall fee structure is made of a small registration fee or engagement fee which is refundable (provided that the buyer completes the purchase within a certain time defined in the contract) and is charged upfront. This will cover all those things like strata investigations, market appraisals and travel.
And a success fee which is a percentage of the purchase price of the property and is paid at the exchange of contracts or when a preliminary contract is signed. This varies in different countries around the world. In the some parts of France fees are as high as 5%, in Spain generally around 2 % and in Australia success fees tend to be around 1.5%.
Our Fee Structure
Engagement fee: $1000 (on signing of Agency Agreement and refundable on completion).
Success Fee: 1.5% of the purchase price.
Please note that the all fees are subject to GST and in the case of investment properties are a deductible expense for tax purposes.
A recent brief for an investment property identified a waterfront unit that was in the process of selling for $625,000. The deal fell over and the seller agent contacted me. We were able to secure the property for $610,000 saving the buyer $15,000 on the purchase price, and a net saving of $6,000 after fees.
A waterfront unit block in the hands of Receivers has provided a great opportunity from a complex transaction. By purchasing the first mortgage exposure after much research and negotiation we were able to acquire the building for $4,000,000 less than current market value.
Auction Bidding Service
Auctions or open outcry, are one of the main mechanisms for securing properties in Australia. Although they can be enjoyable, the emotions of the day can lead to bad investment decisions. By engaging Buying Houses Australia you benefit by utilising our skill and expertise in trying to secure your target property at your predetermined price. Our strategy is determined pre-auction and you can elect to attend, or you can complete documentation allowing us to sign the contract on your behalf if successful. A clear and disciplined approach, like all investment decisions, will save stress, time and money.
Our Fee Structure for Auction Bidding
Attendance Fee: $600. Success Fee: $600 + GST for properties < $2.0m
Attendance Fee: $600. Success Fee: $1000 + GST for properties > $2.0m