Key takeaways
- In Victoria the buyer pays the buyer's agent, not the seller — the opposite of what most Singaporean buyers expect.
- Commission models average around 2.18%, ranging 1.3% to 3.5%. On a A$1m purchase that is roughly A$13,000–A$35,000.
- Fixed fees vary enormously by scope: A$3,500–A$10,500 for search and negotiation, up to A$15,000–A$35,000 for full service on higher-value purchases.
- Most agents require an upfront retainer of 20–50% of the expected fee, usually non-refundable and deducted from the final amount.
- A selling agent will only show you their own listings and cannot advise you on the purchase — that is the buyer's agent's role.
Did you know you have to pay the agent if you want to buy in Victoria?
Yes, in Victoria, you must pay (not the seller) if you use a buyer’s agent. Ignore that fact, and you’re going in blind.
Buying Solo in Australia vs Singapore
In Singapore, you might be used to buying via a developer or sales agent, often no fee upfront, and maybe even a rebate.
In Victoria, you can buy directly from the seller agent, but they will only show you listings they are directly representing. And most likely will not be able to advise you on your purchase, as that is the role of a buyer agent.
The Scope of Buyer’s Agents in Victoria
Buyer’s agents in Victoria offer:
- Full property search across suburbs, including off‑market and pre‑market opportunities
- Thorough due diligence (building reports, strata/OC, contract review)
- Expert negotiation or auction bidding support—especially crucial in hot markets
- Support with FIRB, legal settlement, inspections—even managing lease setup
They act only for you, the buyer, not for the vendor or developers. That means your interests come first.
How Agent Fees Work in Melbourne
There are three main fee structures:
1.) Percentage‑Based Commission
- Commonly ranges between 2-3%, depending on service level, location and property type
- In Victoria, the average is approximately 2.18%, varying from 1.3% to 3.5%, based on the suburb and complexity of the transaction
- In Melbourne, for a $1 million property, that’s $10,000–$30,000.
2.) Fixed-Fee Model or tiered brackets
- Flat fees vary widely by scope: full-service engagements on higher-value purchases can reach A$15,000–A$35,000, while a straightforward search-and-negotiate brief is commonly A$3,500–A$10,500. Get the scope in writing before comparing quotes — the same words cover very different work
- For auction bidding only, often structured as $500 (plus GST) attendance + $1,000 (plus GST) success fee (only for locals)
3.) Hybrid/Tiered Structure
- Many agents require an upfront retainer—usually 20% to 50% of the expected fee—deducted from the final amount and often non-refundable
- Some use tiered pricing, setting a clear fixed fee after scope is defined (e.g. property type, service level)
What’s Standard in Melbourne?
- Commission model: 2.18% on average (range: 1.3%–3.5%)
- Fixed fee: Typically A$3,500–10,500 for full search and negotiation; auction/negotiation‑only services around A$1,500 including success fee
- Retainer: Commonly 20–50%, deducted from final fee and generally non-refundable
Upfront Payment?
Yes, most agents require some payment upon engagement (before purchase). That’s standard, intended to show you’re serious and to enable them to immediately start the search. Be sure you know whether a retainer is refundable if no purchase succeeds.
What You Risk If You Skip a Buyer’s Agent
You’re giving up:
- Off‑market deals: many top properties never hit real estate sites; they go directly to buyer’s agents.
- Negotiation strength: the average agent can save you tens of thousands off the asking price.
Reddit users say:
“We paid a flat fee of about 10k, but… saved money overall because he negotiated a price significantly less than what we likely would have offered.”
Time & stress: sourcing, inspections, due diligence, auctions without local boots-on‑the‑ground, it’s hard.
Missed deadlines or hidden costs: buyers who go solo sometimes miss auction deadlines, cooling-off periods, or trap themselves in unfavourable contracts.
Why Melbourne and Perth Are Winning for International Investors
Melbourne is Australia’s most popular state for foreign buyers, including large numbers from Singapore, spending billions in 2024–25.
Perth also shows strong growth opportunity but often lower price entry and high rental yield. Melbourne offers stable capital growth, world‑class universities, and rentals that attract both students and professionals.
My Personal Take and Why I Think You Should Act Now
I’ve seen investors miss out on hidden Victorian suburbs that delivered double-digit growth, just because they waited too long or negotiated poorly. As I'm writing this now, prices are moving. Every quarter you delay, yields drop and competition increases. You're not just losing time; you’re losing potential returns.
You might think, “I can find a property without paying an agent,” but if you lose an extra 5–10% in price because of poor negotiation or delayed access to off‑market opportunities, you’ve effectively paid more than any agent fee upfront.
Don’t wait until the next wave of international buyers locks in every off‑market deal.
Message us now!
Josh Tay