The buyer’s agency fee is a crucial element when purchasing property through a buyer’s agent. It represents the cost of hiring a professional to assist in finding, negotiating, and securing the ideal property. While this fee is often misunderstood, it is typically structured in one of several ways depending on the agreement made with the agency. Below is a breakdown of how these fees are commonly applied:

  • Fixed fee – A predetermined amount agreed upon in advance.
  • Percentage-based fee – A percentage of the purchase price, often ranging from 1% to 3%.
  • Commission sharing – Some buyer's agents receive commission from the seller, reducing or eliminating costs for the buyer.

Important: The fee structure may vary depending on the property market and the buyer's preferences.

To better understand the financial implications, here is an example of a commission breakdown:

Property Price Buyer’s Agency Fee (Percentage) Fee Amount
$500,000 2% $10,000
$750,000 1.5% $11,250
$1,000,000 1% $10,000