BUYER BEWARE - PART 2: Which Buyer's Agent Are You Really Getting?
- Jennifer Smith
- Aug 12
- 3 min read
Updated: Sep 17
Writer: Jennifer Smith
In Australia, the concept of a property 'buyer's agent' is relatively new, and not widely understood. This hasn't stopped the idea from gaining traction; why wouldn't you need help navigating the purchase of a property? For most people, it's highly stressful and fraught with risk. But not all buyer's agents are what they seem, and it's important to understand the distinctions.
Dedicated 'In-House' Buyer's Agent:
Many traditional sales agencies now employ a dedicated 'in-house' buyer's agent. They are generally not independently licensed, and obtain their remuneration directly from the sales agency.
Within this model, there are a couple of different variations, depending on the focus and objective of the agency.
To strengthen the agency sales service: These buyer's agents or assistants work directly with a senior sales agent, often in a traineeship role, to support the buyer side of a sales transaction, or to manage buyer interest and interactions around the sale of a property.
To diversify the agency service offering: These buyer's agents may be intended as an additional offering, a one-stop-shop model that supports both selling and buying of properties. This is a change in focus, or shift in identity away from the traditional notion of a selling agency, towards a broader real estate service.
Generalist or 'Acting' Buyer's Agent
An number of sales agents also help people to buy a property in order to simultaneously sell their existing property. They often work within a broader sales and property management agency , and are identifiable through the presence of active listings by their agency.
They may offer the service for free to obtain the sale first, or their remuneration may be either a commission-based fee paid by the buyer or a conjunctional arrangement (see below).
These agents act as buyers agent's or a property generalist to secure property on occasion, and are focused on facilitating the transaction. Their dedication and commitment is divided between selling and buying, and they may lack the experience of a specialist buyer's agent.
Conjunctional Buying Agent:
Some buyers agent's are appointed by a buyer for a minimal fee, and obtain remuneration through a conjunctional arrangement with the sales agent of the property being purchased.
Whether as an exclusive buyer's agent or a generalist agent acting as a buyer's agent, their fee is negotiated as a split commission with the sales agent.
While some sales agents are happy with this arrangement, this practice is widely disliked by many, who would rather sell to someone else and keep their commission to themselves.
Affiliated Buyer's Agent
Exclusive buyer's agents are not necessarily also independent. They may be affiliated with builders, developers, or other sales agencies under a broad operational framework, as a service provider, or an agreement based on reciprocity.
They may offer user subscriptions to 'off-market' or 'exclusive' opportunities based on these affiliations, essentially blurring the line between buying and selling.
Some buyer's agents source investment properties primarily from large sales agencies only to refer them back to the agency for property management. These arrangements impact negatively on their relationships with competing sales agencies, their willingness to deal with them, and the opportunities that are available to them.
Independent Buyer's Agent
Independent buyer's agents are also not necessarily exclusive. They may have recently transitioned over from being a selling agent, market themselves as an independent buyer's agent, but are not exclusively focussed on buying properties.
Some buyer's agents act on occasion to sell properties and may list properties for sale on their website.
Many independent buyer's agents also act as a seller's advocate, which adds another layer to the transaction as a buffer or guide in the selection of a selling agent, and oversight of the process.
Exclusive, Independent Buyer's Agent
Exclusive, independent buyer's agents are appointed and remunerated directly by buyers to purchase property.
They do not accept referral fees, take kick-backs, or have affiliations that might compromise their objectivity.
They are focused exclusively on supporting buyers to buy property and do not compromise or blur the lines between buying and selling.
Integrity, independence, exclusivity and experience are essential, and anything less hints at a potential conflict of interest, or compromise on the quality of service you will receive.
Now, more than ever, it’s vital that buyers are aware of exactly who they are dealing with.
If you are looking for an exclusive Cairns Buyer's Agent or Townsville Buyer's Agent in Queensland, Australia, contact Jennifer at NQ Buyers Agent today.
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