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.

• Transparent buyers agent fees
• Sydney-wide search (Hoxton Park base)
• Investment or first home – see real numbers

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:

• See what you can afford across Sydney
• Investment or first home buyer options

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.