What a buyer's agent is
A buyer's agent is a licensed real estate agent who acts for the buyer. The agent you meet at an open home is a selling agent: the vendor appointed them, the vendor pays them, and their legal duty runs to the vendor. They can be helpful and honest, but their job is to get the best price and terms for the seller.
A buyer's agent sits on the other side. You appoint them in writing, you pay them, and their duty runs to you. In NSW, for example, Fair Trading says a buyer's agent must get the best possible price for you, can't go above the agreed price without your express written authority, and must keep you informed at each stage of negotiations.
The licensing rules are state-based. In NSW a buyer's agent needs a real estate agent's licence, or a certificate of registration and must work under the direction of a licensed agent. Victoria regulates them as estate agents, Queensland as real estate agents appointed on a set form, and South Australia requires anyone carrying on a business that negotiates the buying of land to be registered as a land agent.
The title matters less than the licence. "Property adviser", "investment strategist" and "buyers' advocate" are not licences. If someone is negotiating a purchase for you, check they hold the right licence in the state where the property is.
What a buyer's agent actually does
The work varies by agency and by service. A full purchase usually runs through these stages.
- Brief. Working out what you're buying and why: budget, borrowing capacity (confirmed with your broker), strategy, holding cost, hold period and non-negotiables.
- Market and suburb selection. Screening markets against the brief and narrowing to a shortlist. For an investor this is where most of the value or damage happens.
- Pocket and street. Inside each suburb, the streets and pockets that fit and the ones to avoid.
- Sourcing. Finding properties on-market, pre-market and off-market, through selling agent relationships and direct approaches, then screening out most of them.
- Due diligence. Comparable sales, overlays, zoning, the contract or Section 32, building and pest reports, and a walk-away price. Your solicitor or conveyancer reviews the legal side.
- Negotiation or auction. Making offers or bidding for you, inside a limit you've set in writing.
- Contract to settlement. Coordinating your solicitor, broker, inspectors, valuer and insurer so dates aren't missed.
- Handover. For investors, finding or briefing a property manager and getting the first tenant in.
Some agencies only do part of this. A "negotiation only" or "auction bidding" service picks up at stage 6, after you've found the property. A search-only service finds properties and leaves the negotiating to you. None of these is wrong, but know which one you're buying.
What a buyer's agent doesn't do: they don't give you a loan, they can't give personal financial or tax advice unless separately licensed, and an estimate of value from them is not a valuation. Only a registered valuer can value a property.
How fees are usually structured
Fees aren't set by law. NSW Fair Trading puts it plainly: buyer's agents may charge a fixed fee or a percentage of the purchase price, and you can negotiate it. The common structures are:
| Structure | How it works | What to think about |
|---|---|---|
| Fixed fee | One agreed amount for the service, regardless of price | The agent has no reason to push the price up. Check what's included and when it's payable |
| Percentage of price | A share of the purchase price | The fee rises as the price rises, which sits a little awkwardly with getting you the lowest price. Often with a minimum fee |
| Engagement fee plus success fee | A smaller amount upfront when you sign, and the balance when you buy | The upfront part is often non-refundable. Ask whether it's credited against the success fee and what happens if no purchase is made |
| Service-based fees | Separate fees for strategy, suburb research, search only, or negotiation only | Useful if you only need part of the work. Check what each stops short of |
Whichever structure you're offered, check four things in writing:
- GST. Is the quoted fee inclusive or exclusive of GST?
- What's not included. Building and pest inspections, legal and conveyancing, valuations, travel for interstate purchases and stamp duty are usually extra and paid to the providers.
- When each part is due. On signing, on exchange or unconditional contract, or on settlement.
- What happens if you don't buy. Some agreements charge nothing more; some keep the engagement fee; some charge for work done. NSW Fair Trading suggests asking exactly this.
In Victoria, the written authority must state the commission and expenses as a dollar amount or a percentage, and an agent can't claim commission unless they have a written authority, have given you a signed copy, and told you beforehand that commission is negotiable. In Queensland, the appointment form (Form 6 for residential) sets out all commissions, fees and expenses, and when they're due.
We won't quote industry averages here, because they vary widely with the service, the state and the price range, and a single number tends to mislead. Get a written quote and compare like with like.
Conflicts to watch
The most important question about any buyer's agent is who pays them. Everything else follows from that.
Payments from selling agents. Some selling agents offer a share of their commission to agents who bring buyers. In NSW, Fair Trading says a buyer's agent must not accept any payment for referring you to a selling agent, and must declare any conflict of interest in representing you.
Developer commissions and "free" services. Some people who call themselves buyer's agents or property advisers charge the buyer little or nothing because a developer pays them a commission on each sale, usually for new house-and-land packages or off-the-plan units. The Queensland Government warns that property spruikers may receive commissions or inducements from developers, brokers, conveyancers and others, so their advice may not be independent, and lists offering only interstate or off-the-plan properties as a warning sign. If the service is free, the developer is the client.
Referral fees and rebates. Agents may get a referral fee from a broker, conveyancer, building inspector, insurer or property manager they recommend. The rules differ by state:
- NSW. Fair Trading suggests asking whether the agent receives rebates, discounts, commissions or other benefits from third parties, including providers they refer you to. Agents use a Section 47 form to declare relationships with people they refer you to. Separately, since 1 January 2021 the Fair Trading Act requires intermediaries paid a financial incentive to take reasonable steps to make you aware the arrangement exists (though not its value).
- Victoria. Every authority must include a rebate statement saying whether the agent will receive rebates or discounts. Consumer Affairs Victoria says it is illegal for an agent to keep a rebate, monetary or non-monetary: it must be passed to the client.
- Queensland. An agent who refers you to a third party must show you Form 8, which discloses the relationship and any commission received from or paid to that third party. Penalties apply for failing to disclose.
- South Australia. Ask the agent in writing what they receive from anyone other than you, and check with Consumer and Business Services if you're unsure of the rules.
Acting for both sides. Victoria's regulator lists acting for both a seller and a buyer as an example of a conflict of interest, and agents there must not put their interests in conflict with their client's. NSW and Queensland government guidance for buyers doesn't spell out a single rule on this, so ask directly: does the agent, or anyone in their business, act for vendors, and will they ever be paid by the other side of your purchase?
Disclosure rules tell you what an agent must say. They don't make a conflict go away. An agent who never takes money from the other side has nothing to disclose.
How to check a licence
Every state keeps a free public register. Check the person and the business, in the state where you're buying, before you sign anything.
| State | Regulator | Where to check |
|---|---|---|
| NSW | NSW Fair Trading | Verify NSW licence check, or call 13 32 20 |
| Victoria | Consumer Affairs Victoria | Public register: search for licensed estate agents |
| Queensland | Office of Fair Trading | Check a licence |
| South Australia | Consumer and Business Services | Check occupational licence holders |
What to look for: the licence is current, the category covers buying on someone's behalf, the name matches the person and business on your agreement, and there are no conditions or disciplinary actions you weren't told about. NSW's register shows disciplinary action; Victoria's shows relevant tribunal or court orders; Queensland's shows whether a licence is current, expired, suspended or cancelled.
If the property is in a state where the agent isn't licensed, ask how they'll handle it. A licensed local agent should be the one negotiating.
When it's worth it, and when it isn't
A buyer's agent can earn their fee. They don't always, and there are plenty of buyers who are better off without one.
It tends to be worth it when:
- You're buying in a market you don't know, often interstate, and can't easily inspect or attend auctions.
- You're investing for a specific outcome, and the suburb and pocket choice matters more than the house.
- Your time is genuinely scarce and the search would otherwise drag on for months.
- You know you're a nervous or emotional negotiator, or auctions make you freeze or overbid.
- You want access to properties sold before they reach the portals.
It often isn't worth it when:
- You're an experienced buyer in your own area. If you've bought locally before, know the streets, and follow sales every week, a buyer's agent may add little.
- Your budget is very small. A fee that's sensible on a larger purchase can be a big share of a small one. The money may do more as deposit.
- You enjoy the process. Some people like researching suburbs, walking open homes and bidding. If that's you and you're disciplined about it, do it yourself, and use the free tools and guides that help.
- You only need one piece. If you've found the house and just want help at auction, a negotiation-only service or a solicitor's contract review may be enough.
Sometimes the honest answer isn't about the agent at all: it's that buying now doesn't suit your situation. A good buyer's agent should be willing to tell you that.
Questions to ask before you sign
These five come first, because the answers tell you most of what you need to know.
- Who pays you? Only me, or also selling agents, developers, brokers or anyone else?
- Will you show your working? Can I see the data and reasoning behind the suburbs and the property you recommend?
- Will you buy only within a written limit? Is my maximum price set in writing before any offer or auction?
- What do you turn down? What share of properties you look at never reach clients, and why?
- Will you tell me not to buy? Have you told a client to wait, keep saving or walk away? What happened?
Then the agreement itself:
- The fee, in full. Every amount, whether GST is included, and when each is due.
- Scope. What's included and what isn't, especially inspections, travel and settlement work.
- Term. How long the agreement runs, and whether it renews automatically.
- Termination. How either side can end it, with how much notice. In Queensland, either party can end an appointment by written notice with at least 30 days' notice (or less if both agree), and signing with a new agent before the old appointment ends can leave you owing commission under both.
- Refunds. What's refundable if you end it, if no suitable property is found, or if your finance falls through.
- Exclusivity. Can you buy a property you find yourself during the term, and does a fee apply?
- Who inspects. For interstate purchases, who physically walks through the house before you commit, and are they licensed?
- Trust money. Will they hold any of your money in trust, and if so, why?
If anything in the agreement is unclear, NSW Fair Trading's advice applies everywhere: don't sign until you understand it, and ask your solicitor.
How Holdwell works
We're a buyer's agency for investors and for people working towards a home, so it's fair to say how we answer the questions above.
- Paid only by clients. Never by sellers, selling agents or developers. Our fees are fixed, agreed in writing before we start, and we don't hold your money in trust.
- Established freestanding houses only. No off-the-plan, no new estates, no house-and-land packages, so no developer commissions to tempt anyone.
- Three decisions, all yours. You approve the plan, you approve the suburb shortlist, and you approve the property and sign a written limit. We never bid or offer above it unless you change it in writing.
- A status update every week. How many properties we reviewed, what passed, what we turned down and why, and what's next, even in a quiet week.
- An Australia-wide licensed buyer's agency. We buy in every state and territory.
- We'll say when not to buy. Sometimes saving is the better path, and we'll tell you so.
The nine stages are set out in how we work, and the service options, from a full purchase to The Suburb Shortlist for people who'd rather buy themselves, are on our services page.
This is general information. Your broker, accountant and solicitor should check how any purchase suits your situation.
Sources
- NSW Government, "Using a real estate agent to buy a property", September 2025
- NSW Government, "Check a licence for a property agent or conveyancer", September 2025
- NSW Government, "Property and Stock Agents Act 2002: Section 47 form", September 2025
- HWL Ebsworth, "NSW increases consumer protections by imposing new disclosure requirements for intermediaries", May 2021
- Consumer Affairs Victoria, "Acting for a client: estate agent obligations", October 2023
- Consumer Affairs Victoria, "Authorities, rebates and commission", October 2023
- Consumer Affairs Victoria, "Public register: search for licensed estate agents", February 2025
- Queensland Government, "Appointing a real estate agent (buyer's agent)", July 2024
- Queensland Government, "Make a disclosure" (Forms 7 and 8), November 2025
- Queensland Government, "Check a property licence", October 2025
- Queensland Government, "Property spruikers and investment seminars", January 2025
- Government of South Australia, "Land agents", October 2026
- Government of South Australia, "Check occupational licence holders", June 2026
General information only. Nothing on this site takes into account your objectives, financial situation or needs, and it is not financial, credit, tax or legal advice. Past performance is not a reliable guide to future performance.