Why a discount from buyer’s agents could be a red flag

BY CHRIS GRAY, CEO, YOUR EMPIRE

Negotiation is part of human nature. From ancient marketplaces to modern real estate deals, bargaining has always been expected. When you’re buying property, negotiating with the selling agent makes perfect sense. But when it comes to negotiating down your buyer’s agent’s fee, what looks like a saving up front may actually cost you much more in the long run.

Why Clients Ask For Discounts

It’s not unusual for prospective clients to ask whether buyer’s agent fees are negotiable. Usually, the motivation falls into one of three categories:

• The fee sounds like a lot of money on top of the property purchase.

• They’ve seen other buyer’s agents offering cheaper rates.

• They believe they can buy property themselves and don’t see the value.

All of these are fair questions, and they often come from a place of caution. Property is one of the biggest financial commitments people ever make, so naturally they want to scrutinise every cost.

What A Discount Signals About Negotiation Skills

Here’s the paradox: if a buyer’s agent folds easily on their own fee, what does that say about their ability to negotiate on your behalf? Property deals involve experienced selling agents who negotiate for a living. If you can out-negotiate your buyer’s agent before the process even begins, will they really hold firm when it comes to saving you tens of thousands of dollars on a million-dollar purchase?

This isn’t about whether you “won” a small fee reduction. It’s about whether you can trust your agent to get you the best possible deal on the property itself.

The Cost Vs Value Equation

Let’s look at a simple example.

Suppose you save $6,000 by choosing a buyer’s agent who agreed to a 0.5% discount on their fee for a $1.2 million purchase. That feels good upfront.

But how do you know $1.2 million is the right price in the first place?

What if the buyer’s agent convinced you to pay $1.25 million, pointing to a few “comparable” sales that don’t really stack up? Would you know if you’d just overpaid by $50,000?

That’s where due diligence makes all the difference. At Your Empire, for instance, we insist on getting independe nt valuations to ensure we’re paying a conservative figure. Because once a property goes to auction, that same $1.2 million valuation can easily stretch 5% to 10% higher.

On a $1.2 million home, that could be an extra $60,000 to $120,000 – far more than the few thousand dollars someone might have “saved” by negotiating down their agent’s fee. They often justify the price saying “I only paid $1,000 more than the next bidder”.

What A Skilled Negotiator Really Delivers

An experienced buyer’s agent brings more than just fee justification. They:

• Negotiate firmly and strategically to secure the best possible price.

• Maintain long-term relationships with selling agents, opening doors to off-market opportunities.

• Know how to balance holding ground with knowing when to move, ensuring clients don’t overpay or miss out unnecessarily.

In other words, the upfront cost is only part of the story. The real value lies in the outcome of the property transaction and the compounding financial effect over many years.

Why “Cheap” Can Be Expensive

Discounting is often a sign of inexperience. Agents who lack track record, networks, or confidence in their own value may feel pressured to compete on price. But in doing so, they may expose clients to far greater losses later.

A strong negotiator demonstrates their value by holding firm, explaining their fee structure, and showing you how they can deliver returns many times over. That doesn’t just save money – it builds trust.

Final Takeaway

In property, as in life, the key question is always cost versus value. Cost is what you pay today. Value is what you get over the long term.

A buyer’s agent who discounts easily might appear cheaper at first glance, but could cost you far more in inflated purchase prices, lost opportunities, and higher long-term financing. A skilled negotiator, on the other hand, may justify their fee many times over – and help you secure not just a property, but the right property, at the right price.

At Your Empire, we believe in proving value with every purchase. That’s why we focus on buying at valuation price – even in booming markets where auctions often drive properties 5-10% higher. If you’d like to explore how that works in practice, get in touch and we’ll walk you through it.

About The Contributor

Chris Gray is CEO of Your Empire, a buyers’ agency that buys homes and investments for time-poor professionals – searching, negotiating, renovating and managing property on their behalf. Chris has spent over 10 years as the host of ‘Your Property Empire’ on Sky News Business channel, where he’s interviewed various heads of property research companies and major industry figures. Chris is a qualified accountant, buyers’ agent and mortgage broker. For more information, visit www.yourempire.com.au and follow Chris on Facebook: @ChrisGraySydney