Three markets, bought without seeing the homes.
What is a buyer's agent?
A buyer's agent is a property professional hired to act only for the buyer. Their work may include finding homes, checking them and negotiating the purchase. The selling agent works for the seller. The buyer's written agreement sets out the service, fees and what the agent can do on their behalf.
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What is the difference between a buyer's agent and a selling agent?
They work for different people: the buyer's agent represents the buyer; the selling agent represents the vendor, meaning the seller. The seller hires their agent to handle ads, inspections and offers. That agent may answer a buyer's questions. Doing so does not make the agent act for the buyer.
The buyer's agreement defines their agent's work. It may cover advertised homes and homes sold off-market, meaning without a public campaign. It can include checking similar sales, arranging reports, negotiating terms or bidding at auction. The agent may help until settlement, when the sale is completed. A conveyancer or solicitor handles legal checks. A suitable inspector checks building faults.
How are buyer's agent fees structured?
Fees are often a fixed sum or a percentage of the final purchase price. Some agencies offer fewer tasks, such as negotiation or auction bidding alone. The written scope lists the tasks covered. It also sets when fees are due and what happens if the buyer does not buy.
Reports and legal work may cost extra. The fee terms need to say whether GST is included and whether an upfront payment can be refunded. Another question is whether developers, selling agents or other firms pay the agent. Referral benefits can create competing interests. There is no single fee used by all agents, or promise that the service will cover its own cost.
What can I ask before hiring a buyer's advocate?
Licence checks show whether the agent is allowed to do the work. Each state's register or fair trading office can help. In NSW, Verify NSW lists licence types, conditions and conduct history. A person holding a certificate must work under a licensed real estate agent. Experience and reviews are separate checks.
Questions can cover who will do the work, how homes are chosen and what the agent may agree to. They can also cover past purchases, how rival client needs are handled, how updates are sent and how the agreement ends. Reviews describe other people's experience. They do not prove the agent has no competing interests. Written details of payments and referrals help explain those interests.
Illustrative example4 steps
Counting a search shortlist against an agreed brief
- An illustrative search identifies 12 properties.
- Five sit outside the buyer's written requirements and three are no longer available.
- Remaining candidates: 12 minus 5 minus 3 = 4.
- The count records the shortlist only. It says nothing about the condition, value or suitability of those four properties.
For investors
Representation has a scope, not a promised result.
For an investor, the agreement shows whether rent research, ownership costs and inspector bookings are included. A buyer's agent cannot approve a mortgage or take the place of a tax adviser. Their role needs clear limits. The written service and payment terms help explain what the buyer is paying for and when another specialist is needed.
Common questions
Questions about buyer's agent
Keep learning
Property is a complex world.
Buyer's agent is one piece of it. A purchase runs on deadlines, contracts and people working for different sides. Next, read about mortgage broker, due diligence and off-market property.
Success stories
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About InvestorKit
Help Australians invest with confidence.
Founded in 2018 by Arjun Paliwal, InvestorKit is a buyer's agency with its head office in Sydney. We research and buy across Australia.
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