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Understanding buyers agents

Buyers agent vs real estate agent

They both work in property, but they serve opposite sides of the transaction. Here is exactly how they differ and why it matters to you.

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Two professionals, opposite interests

The most important thing to understand about property transactions in Australia is this: the real estate agent you meet at an open home works for the seller. Their legal duty, their commission structure, and their professional incentives are all aligned with getting the highest possible price for the vendor.

A buyers agent is the opposite. They are a licensed professional whose sole obligation is to you, the buyer. They are paid by you, they act for you, and their success is measured by securing the right property at the lowest possible price.

~0%

Selling agent commission

paid by the vendor

Buyer representation

a buyers agent works only for you

State bans dual agency

NSW, the strongest protection in Australia

Typical buyer savings

from professional negotiation

The fiduciary divide

Every property transaction has two sides of the table. The arrows below show where each professional's legal duty flows, and why the buyer without representation faces an information and incentive gap.

Fiduciary duty flows to opposing parties. Both professionals are legally bound to serve different masters.

Buyers agent: fiduciary to you

Legally bound to disclose all material information, avoid conflicts of interest, and act solely in your best financial interest. Their duty ends when you get the keys.

Selling agent: fiduciary to the vendor

Legally bound to achieve the best sale price for the seller. The warmth and helpfulness at the open home is professional service. It does not mean they are working for you.

Key differences at a glance

Eight dimensions where a buyers agent and a real estate agent differ fundamentally, from legal duty to access to outcome.

	Buyers Agent	Real Estate (Selling) Agent
Who they represent	You, the buyer. Their loyalty is exclusively to you throughout the transaction.	The vendor (seller). Their loyalty is to the person who contracted them to sell.
Legal duty	Fiduciary duty to act in the buyer's best interests at all times.	Fiduciary duty to act in the seller's best interests and achieve the best sale price.
How they are paid	Paid by the buyer: fixed fee ($8K–$25K+) or percentage of purchase price (1.5–2.5%).	Paid by the seller: commission of 1.8–2.5% of the sale price, sometimes with a performance bonus.
Their goal	Secure the right property at the lowest possible price and best terms.	Sell the property for the highest possible price in the shortest time.
Property access	Access to 100% of the market, covering public listings, off-market, pre-market, and silent listings.	Only markets properties they are contracted to sell, not the full market.
Negotiation approach	Uses comparable sales data and market analysis to push the price down.	Uses marketing and competition between buyers to push the price up.
Conflict of interest	None. They do not receive commissions from sellers or developers.	Structural conflict: higher sale price = higher commission. Their interest opposes yours.
When to use them	Any buyer, especially time-poor, interstate, investing, or buying at auction.	When selling a property. They market, present, and negotiate the sale on the vendor's behalf.

Who they represent

Buyers Agent

You, the buyer. Their loyalty is exclusively to you throughout the transaction.

Real Estate (Selling) Agent

The vendor (seller). Their loyalty is to the person who contracted them to sell.

Legal duty

Buyers Agent

Fiduciary duty to act in the buyer's best interests at all times.

Real Estate (Selling) Agent

Fiduciary duty to act in the seller's best interests and achieve the best sale price.

How they are paid

Buyers Agent

Paid by the buyer: fixed fee ($8K–$25K+) or percentage of purchase price (1.5–2.5%).

Real Estate (Selling) Agent

Paid by the seller: commission of 1.8–2.5% of the sale price, sometimes with a performance bonus.

Their goal

Buyers Agent

Secure the right property at the lowest possible price and best terms.

Real Estate (Selling) Agent

Sell the property for the highest possible price in the shortest time.

Property access

Buyers Agent

Access to 100% of the market, covering public listings, off-market, pre-market, and silent listings.

Real Estate (Selling) Agent

Only markets properties they are contracted to sell, not the full market.

Negotiation approach

Buyers Agent

Uses comparable sales data and market analysis to push the price down.

Real Estate (Selling) Agent

Uses marketing and competition between buyers to push the price up.

Conflict of interest

Buyers Agent

None. They do not receive commissions from sellers or developers.

Real Estate (Selling) Agent

Structural conflict: higher sale price = higher commission. Their interest opposes yours.

When to use them

Buyers Agent

Any buyer, especially time-poor, interstate, investing, or buying at auction.

Real Estate (Selling) Agent

When selling a property. They market, present, and negotiate the sale on the vendor's behalf.

The commission breakdown, and why it matters

The selling agent's fee is paid by the vendor, but it is baked into the sale price you pay. Here is how commissions compare across Australian cities, and why the incentive structure matters for you as a buyer.

Selling agent commission by city

Typical rate as % of sale price · vendor pays

Sydney1.8%

Melbourne2.0%

Adelaide2.2%

Brisbane2.5%

Perth2.5%

Hobart2.75%

On a $1M property, the selling agent earns $18K–$27K from settlement proceeds.

The incentive misalignment

As the sale price rises, the selling agent earns more, and the buyer pays more.

A fixed-fee buyers agent removes this misalignment entirely. Their fee does not change with the purchase price.

Dual agency rules - state by state

Dual agency, where the same agent represents both the buyer and seller in a single transaction, is the most contentious issue in Australian real estate. NSW bans it outright. Here is how each state regulates it.

	Permitted with full disclosure	Dual agency banned outright
New South Wales	Prohibited under PSA Act 2002	Strongest protection, NSW only
Victoria	Written disclosure required	Disclosure only
Queensland	Written disclosure to both parties	Disclosure only
Western Australia	Permitted with disclosure	Disclosure only
South Australia	Permitted with disclosure	Disclosure only
Tasmania	Permitted with disclosure	Disclosure only

New South Wales