Registration Fee (Retainer)
The Registration fee is paid in advance before any work starts. The retainer shows commitment to the buying agent and lets the selling agents know the buyer is serious. The retainer is deducted from the success fee.
Purchase Fee
The purchase fee is a percentage of the purchase price and is due on “exchange of contracts”. Some buying agents will work on a fixed or capped fee for higher-value searches.
Buying agents fees to avoid
Paying upfront – Avoid paying the purchase fee upfront. The buying agent should be motivated to work for you. If you pay them upfront, you will be a low priority.
Percentage of savings – Some buying agents calculate their fees as a percentage of the difference between the sale price and the asking price. This option is open to abuse for two reasons;
The asking price is rarely the actual market value and is often as much as 15% more. This fee structure could be more expensive for the buyer.
A higher fee could influence a buying agent’s advice.