Buyer’s Agents Under Question: Who Are You Trusting With Your Future?
The questions that could save you from an expensive mistake
A buyer’s agent is not simply being paid to find a property. They are being trusted to protect a client from buying the wrong one, in the wrong location, at the wrong price.
The stories I am hearing should concern every buyer
Recently, I spoke with a property manager in Ballarat who told me about an interstate investor represented by a buyer’s agent. According to the property manager, the agent did not travel to inspect the property, the investor paid at least $80,000 more than the property was considered to be worth in an average location, and a further $2,500 was required before it could meet the standard needed to be rented.
I cannot independently verify every aspect of that transaction, and one story should never be used to condemn an entire profession. But I am hearing enough stories of poor selection, weak research, undisclosed conflicts and buyers being handed from salesperson to junior staff member that consumers should be asking far more questions before signing an authority.
Property is often the largest financial commitment a person will make. For an investor, one poor purchase can affect borrowing capacity, cash flow, retirement plans and the ability to buy again. This work deserves far more than a glossy proposal, an impressive social-media presence and a promise of ‘off-market access’. It requires experience, judgement, evidence and accountability.
A licence is the starting line—not the finish line
In Victoria, a buyer’s agent, also called a buyer’s advocate is an estate agent acting for the buyer for a fee. Anyone carrying out estate agency work must be appropriately licensed or employed and authorised as an agent’s representative. Consumers should verify both the individual and the business on the Consumer Affairs Victoria public register before engaging them.
A qualification permits someone to work in the industry. It does not, by itself, prove that they can identify a superior asset, understand a local market, negotiate under pressure or manage a complex transaction. Ask for the substance behind the credential.
1. What is their real experience?
How many years have they worked in real estate? Not merely how long has the agency existed, but how long has the person making decisions for you personally worked in property?
What did they do before becoming a buyer’s agent? Have they worked in residential sales, property management, valuation, conveyancing, development or another relevant discipline?
Have they worked in real estate sales? Sales experience is not a legal prerequisite and it is not the only path to competence. However, it can provide valuable insight into vendor motivation, agent procedures, campaign dynamics, offer handling and negotiation from the other side of the table.
Can they demonstrate results? Ask for recent, examples, not only their best success story, and permission to speak with past clients where appropriate.
Do they understand the specific market? A specialist in inner-Melbourne apartments is not automatically the right adviser for a Ballarat house, a regional acreage property or a new townhouse corridor.
I often compare it with engaging a building inspector who has never been a builder. They may have completed a course and be able to comment on what they see, but practical experience can bring a different understanding of how the pieces fit together. The right question is not simply, ‘Are you qualified?’ It is, ‘What have you actually done, for how long, and who will apply that experience to my purchase?’
2. Who will actually do the work?
The person who wins your business may not be the person who searches, inspects, analyses or negotiates. Before signing, ask:
Who is my day-to-day advocate? Obtain their name, experience and role.
Who inspects the property and surrounding streets? If a contractor or local representative is used, ask who they are, what they assess and who remains accountable.
Who completes the pricing analysis and negotiation? A templated report prepared by an analyst is not the same as experienced judgement being applied to the evidence.
How many active clients does each advocate carry? Excessive client loads can reduce inspection time, communication and genuine search effort.
Will the agency represent competing buyers? Ask what happens if two clients want the same property or have substantially the same brief.
3. What does ‘off market’ really mean?
The term ‘off market’ has become one of the loosest phrases in property marketing. Consumer Affairs Victoria describes off-market properties as properties that have yet to be advertised for sale. That broad definition can include very different situations.
Pre-market: a property is being circulated to an agent’s entire database before public advertising. There may already be considerable competition.
Limited campaign: the selling agent is approaching a selected group of buyers or advocates, often while testing price.
Genuinely private or exclusive opportunity: the owner or agent has approached one advocate or a very small number and the buyer may have a short window to assess and negotiate without an open competitive campaign.
I prefer the description ‘secret sale’ for a genuinely private opportunity because it forces a more honest question: who else knows about it? Off market does not automatically mean good value. Sometimes a property remains private because the vendor wants an ambitious price, the asset is difficult to sell, or the selling agent knows certain buyers will purchase quickly with less scrutiny.
A buyer’s agent should never recommend a property because it is off market. They should recommend it because it is the right property, supported by evidence, at a defensible price.
4. What due diligence is completed on every property?
Due diligence should not be an optional upgrade and it should not be reserved for investors. A home buyer can lose just as much from an unsuitable property, hidden defect, compromised site or poor resale position. Ask to see a de-identified example of the written assessment you will receive. At a minimum, the process should address:
Comparable-sales analysis: recent like-for-like settled sales, with adjustments for land, accommodation, condition, position, timing and any material superiority or inferiority. Ask which data platforms and public records are used and whether the agent personally verifies the comparables.
Price and negotiation range: a reasoned opinion of value, the maximum recommended price and the evidence supporting both, not merely the advertised range or selling agent’s opinion.
Land and location: title and site context, dimensions, overlays, zoning, easements, covenants, planning risks, nearby development, noise, traffic, flood, bushfire and other locally relevant hazards.
Property inspection: the home, immediate neighbours, street, access, orientation, natural light, privacy, parking, external condition, surrounding uses and anything that may affect enjoyment or resale.
Building and pest inspection: an appropriately qualified, insured and independent inspector. Consumer Affairs Victoria warns buyers to be cautious about reports supplied by the seller or selling agent and recommends obtaining an independent report.
Contract and Section 32 review: a conveyancer or solicitor should provide legal advice. Ask when the contract is reviewed, how legal risks are reported and how the advocate coordinates special conditions and deadlines.
Owners corporation review where relevant: fees, minutes, insurance, maintenance fund, special levies, defects, cladding, disputes, litigation, rules, short-stay restrictions and major works.
Resale and exit risk: buyer depth, property uniqueness, oversupply, compromised layouts, main-road position, small land, high fees, difficult parking and features that may limit future demand.
True cost analysis: purchase price, stamp duty, legal costs, inspections, immediate repairs, owners corporation fees, insurance, land tax exposure, property management, vacancy allowance and a maintenance buffer.
No report eliminates risk, and a buyer’s agent is not a lawyer, building inspector, financial adviser or tax adviser. Their job is to identify what needs investigation, coordinate the right independent experts, assemble the evidence and help the client make a properly informed decision.
5. For investors, where is the independent rental evidence?
An advertised rent or selling agent’s estimate is not enough. Before an investor commits, the buyer’s agent should obtain an independent property-management assessment from a competent local manager wherever practicable. It should consider:
Rent and demand: a realistic rent range, comparable rentals, likely tenant profile, leasing time and a conservative vacancy scenario.
Rent-ready costs: maintenance, safety, minimum rental standards and compliance work required before occupation.
Ongoing performance: management fees, letting costs, expected maintenance, local supply, competing new stock and factors affecting tenant retention.
Worst-case cash flow: not only the best headline yield. Model a lower rent, vacancy, repairs, higher interest or owners corporation costs so the buyer understands the buffer required.
For eligible properties, the advocate can also coordinate a tax-depreciation schedule with a suitably qualified quantity surveyor before a new tenant moves in, while the buyer confirms all tax treatment with their accountant. The Australian Taxation Office notes that a quantity surveyor can prepare a report when a rental property is purchased; whether deductions are available depends on the property and the owner’s circumstances.
6. Will they personally support the transaction to settlement and beyond?
Pre-settlement inspection: Will the advocate attend with you or on your behalf, compare the property with its contracted condition, document issues and coordinate them with your legal representative?
New builds: What independent staged or defect inspections are recommended under the contract, and who coordinates them? Timing varies by contract and construction stage; it should not be assumed that one inspection immediately before settlement is enough.
Property management handover: Will the advocate help select and brief the property manager, arrange access, address rent-ready items and ensure the leasing strategy is ready?
Post-purchase support: What happens if an issue emerges after settlement? Is support included, time-limited or charged separately?
The service should not disappear when the success fee becomes payable. A purchase is not finished merely because the contract is unconditional.
7. Follow the money
A buyer should understand exactly how the advocate is paid and whether anyone else benefits from the purchase. Ask:
Is the fee fixed or percentage-based? A percentage fee may rise as the purchase price rises. That does not prove a conflict, but the incentive should be understood and the maximum purchasing authority should remain clear.
Are there referral fees, commissions, rebates or developer payments? Ask for written disclosure of every commercial relationship connected with recommended property, finance, conveyancing, inspections, depreciation or management.
Does the agency sell property or represent vendors? In Victoria an estate agent cannot act for the buyer and seller in the same transaction. Buyers should also understand the broader business model and how conflicts are controlled.
Is any stock being promoted by a developer or project marketer? Ask who selected it, who pays whom, whether alternatives were considered and whether the recommendation would be the same without a commission.
Victorian professional-conduct rules require agents to act fairly, honestly, in good faith and in their client’s best interests, and to disclose personal or commercial relationships with recommended suppliers. A good advocate will welcome these questions.
8. Read the authority before you sign
The buyers’ agency authority is the legal document that appoints the agent and sets the fees and scope. Read it carefully and obtain legal advice if anything is unclear. Check:
Scope: full search, appraisal, negotiation, auction bidding, due diligence, settlement support and post-purchase services—what is included and what is not?
Exclusivity and term: how long are you locked in, can it be extended? Is there a limit to the amount of properties that will be presented?
Success fee trigger: is it payable on signing, exchange, unconditional contract or settlement—and what happens if the purchase does not proceed?
Expenses and third parties: which inspections, reports, travel and specialist costs are additional?
Termination and complaints: how can either party end the authority, what fees survive termination and what is the internal complaint process?
The ‘good-time agent’ and the ‘bad-time agent’
A highly experienced Melbourne selling agent recently told me he had sold 17 properties off market in one month to interstate buyer’s agents. I asked, ‘Where was my call?’ He laughed and said, ‘You would not have bought any of them. You are too fussy.’
My response was immediate: isn’t that the job? Shouldn’t a buyer’s agent be fussy when spending somebody else’s money?
He then offered an observation that has stayed with me. In his view, much of the industry is made up of ‘good-time agents’: people who enter while conditions suit them, make their money, and leave before the consequences of weak recommendations become visible. He described the smaller group as ‘bad-time agents’: those prepared to stay in the trenches, hold the client’s hand to the finish line, have the difficult conversations and remain accountable long after the excitement of the purchase has passed.
His percentages were personal opinion, not verified industry data, but the distinction is powerful. The consumer does not need an agent who can make every property sound exciting. They need one who is prepared to say no—repeatedly—until the evidence supports yes.
The questions every buyer should ask
Are you personally licensed, or are you an authorised agent’s representative and can I verify you and the agency on the public register?
How long have you personally worked in real estate?
What relevant sales, property management, valuation, legal or investment experience do you bring?
Who will search, inspect properties, analyse, negotiate and what is each person’s experience?
How many active clients do you carry, and how do you manage clients with competing briefs?
What does ‘off market’ mean in your service, and exactly who else will be offered the property?
Will you inspect every shortlisted property and its immediate location? If not, who will and what will I receive?
Can I see a de-identified example of your full due-diligence and comparable-sales report?
Which data sources do you use, and how do you select and adjust comparable sales?
What independent building, legal, rental and specialist advice will be obtained and who pays for it?
How do you assess rental compliance, rent-ready costs, cash flow, vacancy and resale risk?
Do you receive any commissions, referral fees, rebates or benefits from developers or service providers?
What are the authority term, exclusivity, termination rights, fee trigger and additional expenses?
Will you attend the pre-settlement inspection and coordinate any new-build defect inspections?
What support remains after the contract becomes unconditional and after settlement?
My final view
I am saddened by the numerous stories I am hearing because buyer advocacy is not a casual sales job. It is a position of enormous trust. We are dealing with people’s savings, debt, homes, livelihoods and futures.
Experience matters. Local knowledge matters. Inspection matters. Independent evidence matters. Tough conversations matter. And accountability matters most when the right advice is not what the client or the selling agent wants to hear.
Do not choose a buyer’s agent simply because they promise access to properties you cannot see online. Choose the person who can demonstrate how they will protect you from the property you should never buy.
Consumer resources
Important: This article provides general information only and is not legal, financial, tax, building or investment advice. Examples have been anonymised and reflect conversations reported to the author. Buyers should obtain advice appropriate to their individual circumstances.
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