A buyer’s agent helps you find or purchase property on your behalf. Before engaging one, establish three things: what work you need, whether the people doing it are appropriately authorised, and who will pay them.
Consumer Affairs Victoria describes a buyer’s agent, also called a buyer’s advocate, as an estate agent who represents a buyer for a fee. The distinction is who the agent represents: the selling agent works for the seller.
This guide explains how to compare services and fees, check credentials, identify conflicts and read an agency agreement. It also covers the anti-money laundering requirements that began applying to relevant real estate services on 1 July 2026.
What a buyer’s agent does
Depending on the agreed scope, a buyer’s agent can research properties, arrange inspections, deal with selling agents, assess pricing, negotiate or bid at auction. Some engagements extend through settlement. Confirm the specific deliverables instead of relying on a description such as “full service”.
Consumer Affairs Victoria’s guidance outlines the services a buyer’s agent can provide.
Use these service descriptions as a starting point when requesting quotes. They are comparison categories, not standardised packages.
| Service to request | Work to define in the quote | Question to ask |
|---|---|---|
| Search and purchase support | Search area, property brief, research, inspections and purchase assistance | Who will inspect and assess each shortlisted property? |
| Assessment and negotiation | Review of a property you identify, price advice and negotiations | Which reports and contract checks are excluded? |
| Auction bidding | Preparation, written bidding instructions and attendance | What happens if the property sells before auction or is passed in? |
A buyer’s agent’s inspection should not replace specialist building, pest or other relevant reports. NSW Government guidance recommends a suitably qualified inspector and explains that a standard building report has limitations, including inaccessible areas and matters outside the inspector’s expertise.
Arrange your own legal review of the purchase documents. Ask which tasks your solicitor or conveyancer will handle and which information they need before you make an offer or bid.
Who represents the buyer and the seller
A useful first question is: “Who is your client in this transaction?”
A selling agent’s role is to represent the seller. Engaging a buyer’s agent establishes a separate relationship with someone acting for you.
Consumer Affairs Victoria explains these different roles and states that an estate agent cannot act as buyer’s agent and for the seller in the same transaction.
For a purchase outside Victoria, check the applicable regulator’s rules. Also distinguish between an agency that handles sales on other properties and someone proposing to represent both parties to your purchase. Ask about the actual transaction, the people involved and any related businesses.
Buyer’s agent fees and how to compare quotes
NSW Government guidance explains that buyer’s agents may charge a fixed fee or a percentage of the purchase price, and that fees are negotiable. The amount and payment arrangements belong in the written agreement.
There is no fee estimate in this guide presented as a national average. Obtain two or three written proposals for the same level of service for comparison.
Ask each agency to specify:
- The upfront payment and whether it is credited against the total fee.
- The fixed amount or percentage, including any minimum fee.
- When further payments become due, such as contract signing or settlement.
- Charges for inspections, travel, reports or additional auctions.
- What you owe if you do not buy, finance is declined or the engagement ends.
- Any refund conditions and fees on a property you find yourself.
A hypothetical fee calculation
Suppose a quote charges 2% of an $800,000 purchase price. The fee would be $16,000 before any additional tax specified in the quote. If the quoted arrangement adds 10% GST, the total would be $17,600.
These are illustrative assumptions, not evidence of a typical market rate. Compare that total with a fixed quote covering the same work, then ask what happens at a different purchase price.
A percentage fee increases as the purchase price increases. That arithmetic warrants a conversation about incentives, but it does not establish that an agent will negotiate poorly. Equally, a fixed fee does not establish independence or service quality. Assess the terms alongside the agent’s conduct and evidence.
Include the agency fee in your overall purchase budget. Property Research Hub’s financial calculator resources can support your budgeting; use the actual written quote when assessing affordability.
Check licensing and authority before signing
Do not assume every person working on your purchase must personally hold the same licence. For example, NSW permits relevant work by a licence holder or a certificate of registration holder working under a licensed agent’s direction. See the NSW buyer’s agent requirements.
Ask for the contracting entity’s legal name, the responsible licensee’s details and the credentials of the person who will perform the work. Check the applicable official records yourself.
For an interstate purchase, confirm that the provider is authorised to perform the proposed work where the property is located. Ask the relevant regulator how any interstate recognition arrangement applies to that provider.
| Location | Official starting point |
|---|---|
| New South Wales | NSW licence verification |
| Victoria | Consumer Affairs Victoria estate agents register |
| Queensland | Office of Fair Trading licence checks |
| Western Australia | Consumer Protection WA |
| South Australia | SA Government licence checks |
| Tasmania | Property Agents Board register |
| Australian Capital Territory | Access Canberra property licensing guidance |
| Northern Territory | NT Government property agent licensing guidance |
These links include both registers and regulator guidance pages. Follow the instructions for the relevant licence or registration category, and check any conditions shown.
Ask for evidence of professional indemnity insurance and confirm which business and services it covers. Treat the register check as one part of your assessment, alongside experience, scope and contract terms.
AUSTRAC requirements from July 2026
From 1 July 2026, Australia’s anti-money laundering and counter-terrorism financing regime expanded to relevant real estate services.
AUSTRAC identifies brokering the sale, purchase or transfer of real estate on behalf of a buyer or seller as a designated service, subject to the coverage conditions in its guidance. Whether a business is covered depends on its activities and Australian geographical connection, not simply its trading title. See AUSTRAC’s real estate designated services guidance.
What buyers should expect
You may be asked for identity information and documents, and further information relevant to the transaction. Requirements can depend on matters such as whether you buy personally or through a company or trust.
Ask the professionals involved what they need and how to provide it securely. AUSTRAC’s information for property buyers and sellers explains what you may need to provide.
An agency’s customer due diligence responsibilities can extend to both sides of a transaction. That does not mean it represents both sides as their property agent. This distinction is explained in AUSTRAC’s real estate guidance.
What to ask the agency
Ask whether its services require AUSTRAC enrolment, whether it has applied or enrolled, and who manages its compliance process.
Newly covered businesses must apply within 28 days of starting to provide a designated service. This is an application timeframe tied to commencement, not a universal deadline by which every business must have completed enrolment. See the AUSTRAC enrolment overview.
Use these questions to understand the agency’s process. Enrolment alone should not be treated as proof that every obligation has been met, or as a substitute for checking real estate credentials and conflicts.
Identify conflicts and third-party payments
If a service is advertised as free, ask how the provider earns revenue and who it represents. Do not infer the payment arrangement from the marketing label alone.
Request written answers to four questions:
- Will you or a related business receive money or another benefit from anyone besides me in connection with this purchase?
- Do you receive benefits for referring me to a broker, conveyancer, inspector, property manager or developer?
- Do you or a related party have an ownership or financial interest in a recommended property?
- Are you acting for another buyer seeking the same type of property, and how will competing interests be handled?
Queensland’s appointment guidance requires property agents to disclose expected financial benefits from third parties, including referral rebates. Check the requirements applying to your purchase as well as the written disclosures you receive.
Disclosure tells you about a potential conflict; it does not remove the incentive. Decide whether the arrangement is acceptable, whether you can choose independent providers and whether you need further advice before signing.
Ask for evidence supporting the recommended purchase price. Do not assume either that a commission proves overpricing or that disclosure proves the price is fair.
Assess local knowledge and pricing advice
Ask the agent to explain a recent purchase in your target area, without revealing another client’s confidential information. What comparable properties did they consider? What differences in condition, land, location or ownership arrangements mattered? Why was the purchase suitable for that client’s brief?
Request a written assessment for a property you are seriously considering. Ask the agent to identify the dates of comparable sales, explain adjustments and distinguish an asking price from a completed sale price.
Requirements for price advice can be specific. Queensland guidance, for example, describes comparative market analysis criteria and requires written advice with reasons where suitable comparisons cannot be found.
Use property data and pricing tools to examine the evidence yourself. Ask whether you need a separate independent valuation for your purpose rather than assuming the agent’s appraisal serves every purpose.
Property selection also needs more than a price estimate. Discuss the checks appropriate to the address, including climate and environmental hazards and planning and development information. Establish who will investigate each issue and what requires specialist advice.
Market context in September 2026
Cotality reported that national home values fell 0.9% in August 2026, the fifth consecutive monthly decline, leaving values 3.6% below their March peak. These are national observations, not a forecast for every suburb or property.
When considering a purchase, ask how recent local evidence affects the recommended offer. A national downturn alone does not establish that a particular seller will discount or that a particular property offers good value.
Examine off-market claims
Treat an off-market introduction as a property to investigate, not a reason to bypass your usual checks. Ask why the property is not publicly advertised, whether other buyers have been approached and how the price compares with relevant completed sales.
If access to off-market properties is central to the pitch, ask the agent to define the term and explain what access they will actually provide. Seek evidence of previous introductions without requesting confidential client information.
Do not pay a fee solely because a property is described as exclusive. Evaluate its suitability, condition, price and transaction terms with the same care you would apply to an advertised listing.
Read the agency agreement carefully
Before signing, ask for a complete copy of the proposed agreement and all schedules. Have unclear or consequential clauses reviewed by your solicitor.
Check:
- Scope: the area, property types, services and exclusions.
- People: who performs the work and who supervises them.
- Duration: the end date and any extension or renewal provisions.
- Fees: the total, payment triggers, extra expenses and refund terms.
- Exclusivity: whether a purchase you find yourself triggers a fee.
- Termination: notice requirements, exit charges and any continuing fee obligations.
- Authority: what the agent may negotiate, offer or bid without further instructions.
- Conflicts: third-party benefits and arrangements for competing buyer clients.
- Communication: reporting frequency and how instructions are recorded.
In Queensland, a residential property agent must be appointed in writing using Form 6 before providing services. The form records matters including services, fees and appointment terms. Other jurisdictions use their own requirements. See Queensland’s appointment guidance.
Do not assume that rights to cancel an agency engagement are the same as cooling-off rights under a property purchase contract. Confirm the position for each document before signing.
Keep the agreement, disclosures, invoices and written instructions. If buying an investment property, ask your accountant how each fee should be treated rather than assuming it is immediately deductible.
When a buyer’s agent may be worth considering
Consider the service where you need help inspecting from interstate, researching an unfamiliar area or negotiating within a clear budget. Identify the task you want help with before deciding how much service to purchase.
A full search may be unnecessary if you have already chosen a property and only need negotiation or auction support. It may also offer limited additional value if you have the time, local knowledge and confidence to do the work yourself.
Ask yourself what the fee would buy that you cannot reasonably do or arrange independently. Then assess whether the agent can demonstrate that capability. Do not treat a claimed saving as guaranteed or measure success only against the seller’s initial asking price.
If a dispute arises, raise it with the agency in writing and keep the response. Check the relevant state or territory regulator’s complaint process. NSW guidance, for example, directs unresolved complaints to NSW Fair Trading and explains further tribunal options.
Checklist before engaging an agent
- Verify the business and relevant individual credentials through official channels.
- Confirm authority to perform the proposed work where the property is located.
- Compare written quotes covering the same services and total payable.
- Obtain written disclosure of third-party payments and related interests.
- Understand how competing buyer clients will be managed.
- Review scope, exclusivity, payment triggers and termination terms.
- Confirm insurance and who will actually carry out the work.
- Ask relevant AUSTRAC enrolment and identity-check questions.
- Review local experience, sample research and recent client references.
- Arrange the legal and specialist property checks appropriate to your purchase.
Frequently asked questions
How much does a buyer’s agent cost in Australia?
Request a written quote for your location and scope. Fees can be fixed or based on a percentage of the purchase price. Compare the total payable, payment timing, inclusions and cancellation terms rather than relying on an unsupported national average.
Is a buyer’s agent worth the fee?
Assess the work you need and the provider’s ability to do it. The case is stronger when the engagement solves a specific problem, such as inspecting from a distance or managing negotiations. A limited service may be sufficient if you have already found a property.
Can a buyer’s agent also act for the seller?
Consumer Affairs Victoria expressly prohibits acting as buyer’s agent and for the seller in the same transaction. For purchases elsewhere, check the applicable rules. Ask who the provider represents and obtain written disclosure of other payments or interests.
Are off-market properties necessarily better purchases?
The label does not establish value or suitability. Ask why the property is not advertised and assess comparable sales, condition, legal documents and other relevant risks before making a decision.
Why is the agent asking for identification?
AUSTRAC’s expanded regime covers relevant real estate services from 1 July 2026. Covered businesses have customer due diligence responsibilities. Ask what information is required for your transaction and how to supply it securely.
Do I still need a conveyancer and building inspector?
Arrange appropriate legal advice and specialist inspections separately. Confirm exactly what the buyer’s agent’s service includes; viewing a property with an agent does not replace a specialist report or legal review.
This article provides general information, not legal, financial, tax or property advice. Requirements depend on the jurisdiction and circumstances. Check current regulator guidance and obtain advice appropriate to your transaction.