Should you hire a buyer's agent?

Buying a property can be overwhelming, especially if you don't have any experience with real estate. You might have heard that a buyer's agent might be able to help, but what is a buyer's agent? We've broken down what buyer's agents do, and whether or not you really need one.

What is a buyer's agent?

A buyer's agent represents the interests of a property buyer, just like regular real state agents do for the seller. That can mean house hunting, organising building and pest inspections, and often putting in offers or negotiating directly with the seller on the buyer's behalf. Buyer's agents can be used by both owner occupiers or investors.

Buyer's agents need to hold a real estate licence in any state or territory they make purchases in. If your agent only has a Queensland licence for example, they won't be able to buy you property anywhere else.

What does a buyer's agent do?

The most common services offered by a buyer's agent are:

Property Search and Selection

Buyer's agents sift through listings, attend open houses, and use their network to discover properties that meet your specific requirements. This can save you a lot of work, and with their market expertise a good buyer's agent should be much better than you are at finding suitable properties. For example, a buyer's agent may know about off-market properties that you wouldn't be able to find on any listing.

A buyer's agent can also be useful in narrowing down the type of property you're after in the first place. They might be able to offer advice on what you should prioritise, not to mention help give you a realistic idea of what you can afford.

Market expertise

Even if you're buying a property to live in, it's still likely one of the biggest investments you'll ever make. Finding a property that will hold or appreciate in value is a high priority for most people, and buyer's agents could have the relevant expertise to help you pick a winner.

Not only that, but they will be experts in a handful of suburbs and will be well-placed to advise you on areas, streets and houses that tick the boxes in terms of your 'must haves' - whether that's good public transport, schools, cafes and shops, and other needs.

Due Diligence and Research

Buyer's agents may often also conduct due diligence into a prospective property for you. This might include past sale information, title issues, building and pest inspection reports, and any potential liens or encumbrances. Their attention to detail can help you avoid costly surprises after the purchase.

Negotiate on your behalf

Buyer's agents also negotiate price and terms of the real estate transaction on your behalf. They might be able to secure a lower purchase price or get favourable closing cost concessions, or additional contingencies to protect your interests. Their experience in handling negotiations ensures that you get the best deal possible.

As they aren't directly tied to the property, they might be able to make more level-headed offers and know when to walk away either through private treaty or at auction.

Streamlining the Transaction Process

Navigating the paperwork and legal aspects of a real estate transaction can be cumbersome. Buyer's agents help streamline the process by coordinating with real estate lawyers, title companies, and mortgage lenders, ensuring that all the necessary documents are properly prepared and submitted.

How much does a buyers agent cost in Australia?

Buyer's agents generally charge either a fixed fee or a percentage of the property price.

A fixed fee can vary widely, typically starting at $2,000 but potentially exceeding $15,000. The exact amount can depend on factors such as the property's value and the scope of services provided. Some agents use a two-part fee structure, with an initial fixed retainer fee and then a further commission fee based on the property value.

Fully commission based buyer's agent fees generally fall between 2-3% of the property price.

Do I need a buyer's agent?

Pros of using a buyer's agent

There are many potential benefits of hiring a buyer's agent. For first-time and inexperienced home buyers, an agent can reduce some of the stress in the home-buying process.

Some of the potential benefits include:

• Local market expertise that can help you better understand what sort of property you should be looking for

• Accessing more properties, including off-market (silent listings) unlisted or pre-market listings before they are advertised

• A more rational perspective free of emotion to help advise you

• Freeing up time that would have otherwise been spent searching the internet, calling agents, and inspecting open homes

• Skilled negotiation to get you the best deal

Cons of using a buyer's agent

The biggest downside to using a buyer's agent is usually the cost. An extra 2-3% on top of your purchase price is a pretty significant additional expense, and might mean you need to reassess your budget.

On a $800,000 property that's potentially $16,000 to $24,000 and a significant hit to the deposit you've saved up. You'll want to weigh up the cost versus convenience and potential savings through negotiation when it comes to buyer's agents.

Are buyer's agents worth it in 2025?

Buyer's agents aren't as common as seller's agents, but that might slowly be changing. Mortgage broker Julian Finch, Founder of Finch Financial, told Your Mortgage he's seeing buyer's agents becoming increasingly common in Australia.

"Initially the domain of some of Australia's more wealthy property hunters…buyer's agents are diversifying their offering and becoming more affordable in terms of your more middle class property hunters," he told Your Mortgage.

"Increasingly more people need help in the market to secure the ideal property in the face of strong competition. It isn't just about price, it's also about tactics and buyer's agents offer this experience."

A real estate transaction with no buyer's agent means the buyer deals directly with the sales agent, and Mr Finch says in his experience having an agent of your own can be extremely valuable.

"Frankly, some of the tactics used [by sales agents] to manage the negotiation of property leave a lot to be desired," he explained.

"Buyer's agents are really proving valuable for those who might be on an extended property search, especially if the buyers are having no luck in the negotiation phase."

Julian Finch, Mortgage Broker and Founder of Finch Financial

What makes a good buyer's agent?

Mr Finch did however issue a word of caution - choosing the right buyer's advocate is crucial.

"It pays to shop around for the right fit, both in terms of price, but also in terms of the person you are dealing with," he said.

Here are a few other things to look for if you're trying to find a buyer's agent:

• Licensed: You should only hire a buyer's agent that is licensed with the relevant state/territory

• Experience: A proven track record is a good sign your agent will get you a result. Experience in the area you're buying in can be particularly useful.

• Reasonable fee for service: Before you enlist an agent make sure you understand exactly what service you're getting and how much it will cost.

• Transparency: Some buyer's agents may have commercial or preferential relationships with sellers or developers. Unscrupulous agents may nudge you in the direction of a sale that could benefit them, so it's important to try to find someone who will be completely open with you about everything.