Buyer’s Agent vs Going It Alone: The Real Cost

A fair look at what each path costs you

Hiring a buyer’s agent costs money. Buying alone costs something too, it just doesn’t arrive as an invoice. The honest question isn’t which one is free. It’s which one costs you less once you count everything.

Here’s a fair breakdown of buyers agent cost against doing it yourself, including the situations where going it alone is the right call.

What a buyer’s agent costs

Buyer’s agent fees aren’t set by law, so they can be negotiated. Consumer Affairs Victoria says the fees and terms are set out in the buyers’ agency authority, and that you should read it carefully before you sign.

There are two common models. WA’s consumer protection regulator notes that when the fee is a percentage of the purchase price, the agent effectively gives up part of their fee to negotiate a lower price, and that some agents agree a set fee in advance instead. Either way, compare what’s included, not just the headline number.

What going it alone costs

Your time. Research, inspections, calls, paperwork and open homes, often around a full-time job.

Information. A selling agent sells properties every week. You may buy a handful in a lifetime, so comparable sales, contract issues and local knowledge take longer to build.

Negotiation. The selling agent works for the seller. Consumer Affairs Victoria says their main responsibility is to the seller, so you’re negotiating against someone whose job is the other side.

Emotion. Auctions and multiple offers push people to pay more than they planned. Distance from the decision helps.

Mistakes. A property that doesn’t fit your goals, or an issue missed in the contract or inspection, can cost more than any fee. Moneysmart notes that if values fall, you could end up owing more than the property is worth.

Side by side

A simple way to weigh it up

The maths is a break-even question. Here’s an illustration with made-up numbers. These are not a quote, not Coastline’s fee, and not a promise of any saving.

Say you’re buying a property at $800,000 and an agent’s fee is $15,000. That fee is about 1.9 per cent of the price. For the agent to pay for themselves, the purchase would need to be better by roughly that much, through a lower price, a costly mistake avoided, or a better property than you’d have found alone.

It’s worth asking yourself three things. Could I research and negotiate this as well as a professional who does it every week? What is my time worth? And what would a wrong purchase cost me?

When going it alone makes sense

• You know the suburb well and have recent experience buying there.
• You have the time to research, inspect and follow up properly.
• You’re comfortable negotiating, and can stay calm at auction.
• The purchase is straightforward and you already have a clear plan.

When a buyer’s agent is most likely worth it

• You’re buying interstate or from overseas and can’t be on the ground.
• You’re short on time.
• It’s your first investment and you want a second set of eyes.
• The market is competitive, or the property type is unfamiliar.

How to judge value, not just price

• Ask exactly what the fee covers and when it’s payable.
• Ask what you’d pay if they don’t find a property you want.
• Ask about any rebates or commissions they receive from third parties.
• Check they’re a licensed estate agent on the public register.
• Read the agency authority before you sign.

Got a question? Get your answer

Is a buyers agent worth it?

It depends on your situation. It tends to be most worthwhile if you’re short on time, buying from a distance, or new to investing. If you know the area and can negotiate confidently, you may not need one.

How much does a buyers agent cost?

Fees vary and aren’t set by law. Some agents charge a percentage of the purchase price and some a set fee. Ask for the fee and what’s included in writing before you sign.

Can I negotiate a buyer’s agent’s fee?

Yes. Consumer Affairs Victoria says buyer’s agent fees aren’t fixed by law and can be negotiated. Compare what’s included, not just the number.

Do buyers agents save you money?

Sometimes a buyer’s agent negotiates a lower price, but we can’t promise a saving on any property, and you should be wary of anyone who does. The value is in a better-informed, better-negotiated purchase.

What do I pay if no property is found?

That depends on the agency authority you sign. Consumer Affairs Victoria suggests asking exactly this before you agree, so you know the answer in advance.

Ready to see what it would cost you?

Book a free strategy call and we’ll walk you through how we work and how our fees are structured, so you can weigh it up for yourself.