Can a Buyer’s Agent Accept Commissions?

Buying real estate in 2025 is a major, long-term investment. What it is not is a simple exercise in selecting a property and waiting for the returns to accumulate. There’s a lot of intricate details to get right so an investor’s decisions needs to be well thought-out and based on the right information.

Increasingly, investors and home buyers are opting to hire a buyers agent to help them purchase the right property for their needs. A buyer’s agent’s (or buyer’s advocate’s) job is to find the exact property that will meet your goals, negotiate the purchase on your behalf.

So, it’s very important that you choose a buyers agent who will look out for your best interests and is not playing a double game.

So how can you tell if a buyers agent is the right person to help you?

Firstly, they need to be qualified. Any buyers agent you select should be a fully licenced estate agent.

Secondly, a buyers agent should be someone who acts for you, the buyer and not for anyone else. They should not be getting paid by the seller (the vendor) be they a private property owner, a developer or builder.

A genuine licensed buyers agent acts on behalf of their client alone and will never accept rebates or commissions from real estate agents, developers or other parties.

A licensed buyers agent will charge you a fee for service to act exclusively in your interests. It’s really important to note, if they are not charging you a fee, their interests are not yours but someone else’s – probably the seller of the property.

It is illegal for a buyers agent or selling real estate agent to accept commissions from both parties in a property sales transaction.

Fees may be a fixed fee or percentage based and will vary depending on the level of service provided. They can range for a fee for negotiation only, to assess and negotiate the property or a fee for a full market search, assess and negotiate service.

Fees may be negotiable on a case by case basis.

Buyers advocates (buyers agents) study the market and negotiate property sales for a living. It is this day in, day out experience over many years which makes them more familiar with the different sales tactics agents use, and gives them far more experience to judge a property’s genuine value.

It also means they have a much better understanding of market based-evidence and negotiation strategies, meaning they are less likely to be swayed by a real estate agent’s pitch.

Buyers agents are also privy to information available only to industry insiders – the same information bases real estate agents use when pricing and selling and properties – including those sold off market These go well beyond what is available to the public, such as the lists of comparable properties on internet sites.

The media, developers and real estate agents have tried to overly simplify the property buying and investing process, but don’t be fooled. It is much more complex and far easier to make mistakes than most people suspect.

While some people consider themselves well equipped to analyse the market and properties on offer, the market is always evolving and can change quickly. And it is knowing which of these changes are short term fluctuations and which are genuine long term trends which helps experienced buyers agents exploit temporary price movements or significant long term shifts to help their clients make rewarding decisions.

When evaluating a potential buyers agent, look for their formal qualifications, years of experience in the market you are interested in and their online reviews by previous clients.

And remember, without formal licensing and investment qualifications, they have no legal ability to ask for payment to represent you in the transaction.

If you’re unsure, you can always, check with REBAA online to see if your buyers agents is licensed and has been vetted.

How are consumers mislead about Buyers Agents?

The terms ‘buyers agent’, ‘property adviser’ and ‘investment property consultant’ have often been misused by people attempting to portray themselves as something they are not.

Buyers in particular need to be cautious as some the people using these terms aren’t just old-fashioned property spruikers or project marketers, but financial planners, accountants and others who do not have background in real estate.

Real estate laws and terminology vary between states and territories, so it’s best to check within your jurisdiction before trusting someone to buy property on your behalf.

Be wary when a person calling themselves a ‘buyers agent’ offers you free advice and recommends properties. It’s very likely this individual is accepting commissions from the seller, developer or a real estate firm.

A buyers agent is obliged to be transparent in their dealings with you and you have the right to ask get a satisfactory answer to these questions:
●   How do you get paid and by whom?
●   Who are you representing in this transaction?
●   If I pay you and you rebate my fee, does that mean you have a binding agency agreement in place with the vendor/seller?
●   Do you have a real estate license and when was it acquired?
●   How do you avoid overpaying for a property?

These are only a few of the questions you should ask. If this individual is suggesting you acquire real estate they own, there’s an even higher conflict of interest.

Also, do not assume that financial advisors or accountants are qualified to give you advice on which properties to buy. They need to be licensed by their dealer’s group to give property advice and even then, if they aren’t in the market full time, they will likely be missing vital information.

You should also ensure your financial planner or accountant isn’t operating as a ‘marketing agent’ or ‘referring agent’ and getting paid a commission for referring you to a selling agent or project marketer to buy a property.

If they are, they are acting in their own best interests, not yours.

In conclusion, every buyer has personal needs and circumstances so any properties they buy must be the best fit for them .

Your buyers agent is your partner in getting the property you want. You should be able to establish a good working relationship with them so they can understand your brief.

Be clear about what you want from your property and ensure your buyers agent is clear about how they will deliver the service you want.

For more information on buying property in Melbourne, get in touch with our friendly team of buyer’s agents today.

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