Buyer’s Agent Compensation Explained

Buyers Agents Are Paid – Understanding the Costs

When you’re thinking about hiring a buyer’s agent, one of the first questions is:

How do they get paid?

Understanding this is critical — because in Australia, it’s very different to what most people assume.

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• No mortgage brokerage fees + transparent buyers agent commission
• Sydney-wide search (Hoxton Park base)
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1. Buyer’s Agents Are Paid by the Buyer (Not the Seller)

In Australia, buyer’s agents are paid by the buyer, not the seller.

This is typically structured as:

• Engagement fee (upfront) – paid when you sign the agreement
• Success fee (on exchange) – paid once you secure a property

The total fee is usually either:

• A flat fee, or
• A percentage of the purchase price

This structure ensures your buyer’s agent is 100% working in your best interest — not influenced by the seller or selling agent.

2. Buyer’s Agent Agreements

Before any work begins, you’ll sign a Buyer’s Agent Agreement.

This outlines:

• Scope of service (search, negotiation, due diligence)
• Fee structure
• Payment timing

This gives you full transparency from day one.

3. House & Land Packages (Different Structure)

There is one exception.

If a buyer’s agent is sourcing a house and land package, they may be paid by the builder or developer.

In this case:

• The fee is built into the project pricing
• The buyer typically does not pay a separate agent fee

However, it’s important to ensure the advice is still aligned with your goals — not just the developer’s stock.

4. How Fees Impact the Property Purchase

Because you’re paying your buyer’s agent directly:

• There’s no hidden commission baked into the deal for your representation
• Your agent can negotiate purely for you
• You get clear, aligned advice

This is a major advantage compared to relying solely on selling agents.

5. Can You Negotiate Buyer’s Agent Fees?

Sometimes — yes.

Fees can vary depending on:

• Purchase price
• Complexity of the search
• Whether you’re buying multiple properties

That said, the real value isn’t just the fee — it’s:

• The deal you secure
• The risks you avoid
• The long-term outcome of the property

6. Additional Costs to Clarify

A professional buyer’s agent will be upfront about all costs.

Depending on the service, there may be:

• Building & pest inspections
• Strata reports
• Legal/conveyancing fees

These are separate from the buyer’s agent fee.

How Truth Group Charges

At Truth Group, the structure is simple and transparent:

• Engagement Fee – paid upfront to begin the search
• Success Fee – paid on contract exchange
• Flat fee or tailored structure depending on your strategy for more information regarding our fee structure → ( visit our Fees)

No hidden costs. No percentage games.

And importantly:

We combine buyer’s agent services + mortgage planning, so you’re not just buying a property…

You’re making the right financial decision from the start.

Clear on fees? Now see what you can actually afford

Hoxton Park Buyers Agent + Mortgage Broker

• Free Loan Pre-Approval → Property Budget
• See what you can afford across Sydney
• Investment or first home buyer options

LREA 20302280 | Credit Rep 552460 | 40+ lenders | No brokerage fees | Off-market access

See Borrowing Power Now → Start your pre-approval
Start My Property Search →

Final Word

A buyer’s agent works for you — and is paid by you.

That alignment is what gives you:

• Better negotiation
• Better property selection
• Better long-term results

If you want to buy smarter, not just faster — this is where the difference is made.