What Is a Buyers Agent?
The complete overview covering licensing, types, fees, and how to choose one.
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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.
Find a Buyers AgentTwo 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.
100%
Buyer representation
a buyers agent works only for you
0
Commission from the seller
what a Victorian buyer's agent may take, disclosed or not
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: a fixed fee or a percentage of the purchase price. REBAA puts the national average at 2% to 3% plus GST. | Paid by the seller: a commission agreed with them, 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 | Searches beyond the portals, 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: a fixed fee or a percentage of the purchase price. REBAA puts the national average at 2% to 3% plus GST.
Real Estate (Selling) Agent
Paid by the seller: a commission agreed with them, 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
Searches beyond the portals, 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 the commission works, and why its incentive matters for you as a buyer.
What the selling agent is paid
Agreed between the vendor and their agent · vendor pays
The commission is a percentage of the sale price, agreed in the vendor's agency agreement and paid from the sale proceeds. On a $1M sale, each 1% of commission is $10,000. The higher the price, the more the selling agent earns, which is the incentive the next chart shows.
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 and Victoria do not allow it. Other states set their own rules, so check with your state’s regulator.
| Permitted with disclosure | Not permitted | |
|---|---|---|
| New South Wales | Disclosure is not enough | Property and Stock Agents Act 2002 |
| Victoria | Disclosure is not enough | Consumer Affairs Victoria; Professional Conduct Regulations 2018, regs 8 and 12 |
New South Wales
Permitted with disclosure
Disclosure is not enough
Not permitted
Property and Stock Agents Act 2002
Victoria
Permitted with disclosure
Disclosure is not enough
Not permitted
Consumer Affairs Victoria; Professional Conduct Regulations 2018, regs 8 and 12
Key takeaway: An agent cannot serve two parties with opposing interests. Disclosure does not remove the conflict, it only names it. A buyers agent you engage yourself acts for you alone.
When a buyers agent and selling agent collaborate well
Professional-to-professional transactions, where both sides have expert representation, actually run smoother and faster than unrepresented-buyer deals. Here is why.
Smoother negotiations
Selling agents prefer dealing with buyers agents because they are professional, prepared, and responsive. There is no education lag, since both sides understand the process and language.
Clear, unambiguous representation
When each party has their own advocate, there is no question about who is working for whom. This clarity prevents disputes and protects everyone in the transaction.
Faster to settlement
Professional communication means fewer delays. Contracts are reviewed promptly, conditions are resolved efficiently, and both sides move toward settlement with clarity.
Better due diligence
A buyers agent flags issues early (building defects, strata levy arrears, easements) before they become deal-breakers at the eleventh hour. Selling agents value this rigour.
Off-market pipeline
Selling agents who trust buyers agents will call them before a property goes to market. This pre-market access benefits both sides. The vendor gets a quiet sale, and the buyer avoids competition.
Frequently asked questions
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