How to choose a trustworthy Buyer’s Agent

Back in 2008 when I became a buyer’s agent in Sydney, we were still a rare breed, however in 2024 buyer representation is well and truly becoming a fixture in the Australian real estate landscape.  It has also given rise to those opportunists wanting to make a quick buck out of your need to get on the property ladder.  Now more than ever it is important to ensure you know how to discern a great buyer’s agent from one who shouldn't be involved in your property purchase at all.  Here are my top five tips to get you started on the right track: 

1. They’re licensed and insured

Whilst Google may give you a whole list of names, ensure that the buyer’s agent has a Class 1 licence. In NSW this can be checked on the OFT website here. Due to tightened requirements here in NSW it takes a minimum of three years to attain a Class 1 licence, however due to mutual recognition from other states, some buyer’s agent’s may be using a shortcut to get there quicker. If they are willing to cheat the system here, what might they be willing to do to you to get paid?

In my opinion far too many failed real estate agents have reinvented themselves as a buyer’s agent in recent times, so ensure your chosen buyer’s agent isn’t one of those. They need to have  at least 5 years of continued buyer’s agent experience.  Objection handling is ingrained in those particular kinds of  buyer’s agents and I know quite a few real estate agents love to sell to them, knowing that they buy all their subpar properties and overpay by a heap! 

The same goes for professional indemnity insurance. Did you know that this is a requirement for all licence holders in NSW?

2. They have a proven track record

I’d be wary of agents who claim to be the best. First of all, a lot of awards are handed out like candy, without any discernment or proof that the winner has actually deserved the award.  I can’t tell you how many unsolicited emails I have received  to buy a table at an awards ceremony to ensure my team and I are finalists. On the other hand independent bodies like the Real Estate Institute of NSW (REINSW) have a stringent process to ensure the winners are worthy of winning. 

If you are doing your own research you could ask to speak with past and current clients of their experience but also check their Google reviews. Are they all genuine or are they mostly from sales agents? 

A great way to check the quality of their work is to check their past purchases. Have they bought on ‘yellow roads’ (you know, the very busy roads on Google maps). If so, then they don’t care about quality locations, which will ultimately cost you in capital growth potential AND your enjoyment of living.  Have they bought brand new or off the plan? In my opinion they are far too high risk due to the lack of build quality in recent years. How do you know how well the building is run or built without a strata report to review? A good buyer's agent should educate you about these things and steer you away from bad property decisions.

3. Their service is transparent

There are still buyer’s agents who charge a percentage of the purchase price or budget, which is a complete conflict of interest, full stop.  The ‘tiered’ system may seem fairer but it also implies that the higher your budget, the more work it is for the buyer’s agent, which is not always the case. We charge a fixed fee based on the complexity of your search requirements. 

We don't have a time limit on our agency agreement, as we don’t want you to feel under pressure to buy quickly. How long are their agency agreements for and how many clients do they look after at any time? Do they take on competing briefs and are they all about churning out as many clients as possible? 

Make sure you know what the buyer's agent will actually be providing in terms of research per property.  Some buyer’s agents are much cheaper than the rest, so there must be a catch! Things like infrastructure projects, flood mapping  main bodies of water but also overland) capital growth assessments as well as pricing research, zoning and development applications are all an essential part of the due diligence that we offer so make sure you are comparing apples with apples.  

They may be cheap but the service may not even be worth paying for at all if they can’t answer any of the above.

4. Buy local

Your buyer’s agent needs to have local knowledge, experience and contacts.  The real estate market is actually made up of many micro markets and having on the ground experience is vital. Having a pocket deep of contacts of real estate agents but also owners to call upon is essential in being able to uncover properties that may not yet have hit the market. 

They have many years of experience buying locally and aren’t afraid to say ‘no’ when your brief is out of the area or unachievable. A buyer’s agent who just nods yes at all that you say, is only keeping his eye on one prize, his own pocket. It has taken me and my team many years to build up the skill set to do this and we are not afraid to have the hard conversations up front.

An experienced buyer’s agent should have a vast network of connections, from mortgage brokers and solicitors to cleaners and roofers  - all who should be referred on merit, not referral fees, or because they are part of some pyramid networking scheme. If a buyer’s agent is highly recommended by a sales agent for example, it may be because they are receiving a kickback. 

That brings me to my team. 

5. They are not a one man band

Having my team around me has been an essential part of my growth as a buyer's agent. No transaction, no agent or vendor is the same and being able to leverage my team members experience, local knowledge  and connections along with my own has resulted in better outcomes for my clients.

Our processes continue to be finetuned and critically assessed so that our clients always get the best out of us, and we ensure they are in pole position to snap up the right property when it comes. Our team ensures we are fast and efficient, without skipping essential due diligence steps, in a way that no sole agent can ever compete with. 

If you have any further questions on how to choose a buyer’s agent with confidence, do give us a call, we are happy to assist.