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. That fee is your ticket to unlocking off‑market deals you’ll never see yourself. 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, if you buy without an agent, you’re guided by the selling agent who legally represents the vendor. You risk overpaying, chasing public listings, and missing the exclusive off‑market gems. Worse, you won’t even know what you’re missing.
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
– Typically 1%–3% of purchase price in Victoria
– For a $1 million property, that’s $10,000–$30,000.
2.) Fixed-fee model or tiered brackets
– Flat fees often range $3,500 to $15,000, depending on service level
– Auction‑only bidding: as little as $500–$1,000
3.) Hybrid/tiered
– Some agents collect a small upfront retainer (e.g. 20 %), then a success fee on settlement, sliding scale depending on outcome
What’s Standard in Melbourne?
– Commission agents: around 1.2%–2.7% of purchase price
– Flat-fee agents: typically $5,000–$20,000 for full search and negotiation in Melbourne
– Auction‑only or negotiation‑only: $500–$3,000
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.
But Beware of Red Flags
In 2024–25, the industry regulator REBAA warned about buyer’s agents charging upfront fees without delivering real service, or pressuring clients fast because they manage too many clients at once. Some found themselves shown off‑market properties overpriced for kickbacks. Always check:
- Are they REBAA‑accredited? That’s a quality benchmark.
- How many clients do they handle at once? Only a handful ensures personalized work.
- Clear fee structure: no vague promises or hidden extras.
Why Victoria and Perth Are Winning for International Investors
Victoria 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!