What is a buyer's agency?
A buyer's agency is a licensed business that searches for, checks and negotiates property purchases for buyers. It works only for the buyer, never the seller. Unlike a sole agent, an agency usually splits the work across a team. One person may handle strategy, another research, and another the negotiation and settlement.
By Ankit PaliwalUpdated
How is a buyer's agency different from a single buyer's agent?
A buyer's agent is a person. A buyer's agency is the business that employs or contracts them. Some agencies are one licensed agent with a support person. Others have separate teams for strategy, research, finance links, purchasing and after-sale support. The size is not the point. What matters is who does each task on your purchase, and how that work is checked.
A larger agency may cover more locations, because it can run research and local checks in many markets at once. A smaller one may give you more time with the same person. Ask to meet the people who will do the work, not only the person who signs you up.
What licence does a buyer's agency need?
States set their own rules. In Victoria, a company that acts as an estate agent needs its own licence, and an officer in effective control must hold an individual licence. In New South Wales, the state register shows licence types, conditions and any disciplinary history. If an agency buys in several states, it needs to meet the rules in each one. Checking the public register takes a few minutes and is worth doing before you sign.
How do buyer's agency fees work?
Most agencies charge a fixed fee, a share of the price, or a mix of an upfront amount and a fee on purchase. The agreement should say what is included, whether GST is included, and what happens if you do not buy. It should also say whether anyone else pays the agency, such as a developer or a selling agent. Payments from the other side can create a conflict, so ask for it in writing.
| Question | Single buyer's agent | Buyer's agency team |
|---|---|---|
| Who does the work? | One person, start to finish | Several people, each on one stage |
| Markets covered | Usually one area they know well | Can be many, if research is run centrally |
| What to check | Their licence and track record | The business licence and each team member's role |
| Risk to ask about | Workload and time off | Hand-offs between team members |
Comparing two written fee quotes on the same terms
- Agency A quotes a fixed fee of $15,000 plus GST: 15,000 x 1.1 = $16,500.
- Agency B quotes 2% of the price including GST. On a $700,000 purchase that is 0.02 x 700,000 = $14,000.
- On a $900,000 purchase, Agency B's fee becomes 0.02 x 900,000 = $18,000, while Agency A stays at $16,500.
- The cheaper quote depends on the price you pay, so compare both at the top of your budget.
For investors
An investor is buying a process, not just a property.
For an investor, the agency's method matters as much as the deal. Ask how it picks a market, what data it uses and who checks the numbers. Ask how often it buys off-market, and how it handles a property that fails a check. An agency that can explain its process in plain words is easier to hold to account.
How InvestorKit works
A team for each stage of your purchase.
InvestorKit is a buyer's agency with separate teams for strategy, research, acquisition and ongoing support.
We have helped 2,200+ clients buy 3,100+ properties across 420+ suburbs.
Around 70% of recent purchases are off- or pre-market. The usual time from signing to exchange is 2 to 4 months.
Real Estate Business named InvestorKit REB Buyer's Agency of the Year, winner 2023, 2024 and 2026. See the awards.
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