Broker Codex

What does a buyer's agent do, and when should you use one?

By Broker Codex Editorial

What does a buyer's agent actually do, and when should you use one?

Editor's note: This is a guest contribution in our Ask an Expert series. Broker Codex invited Thomas Vu, a licensed buyer's agent at Borderless Investments, to explain the buyer's agent role in his own words. Buyer's agents are not mortgage brokers, but many property buyers work with both, so we asked an experienced practitioner for an independent perspective. The article is general information only. It reflects the author's own experience and is not advice from Broker Codex.

By Thomas Vu, buyer's agent at Borderless Investments

Thomas Vu is a licensed buyer's agent at Borderless Investments in Carlton, NSW, assisting investment buyers Australia-wide and owner-occupiers within the Georges River Council LGA.

A buyer's agent represents the buyer in a property purchase. A good one helps turn your goals and financial limits into a clear buying brief, researches markets and properties, assesses risks and value, deals with selling agents, coordinates due diligence and negotiates on your behalf. They do not replace your mortgage broker, conveyancer, building inspector, accountant or financial adviser. You should consider using a buyer's agent when you lack the time, experience, local knowledge or confidence to complete those tasks properly yourself. You may not need full-service representation if you already have the skills and discipline to research objectively, reject unsuitable properties and negotiate without emotion. The real question is not whether every buyer needs an agent. It is whether professional representation is likely to improve your decision and reduce avoidable mistakes.

What does a buyer's agent do that a selling agent does not?

The simplest answer is that the selling agent works for the vendor. Their job is to sell the property on terms acceptable to their client. A buyer's agent is engaged by the purchaser and should be working towards the purchaser's objectives.

That distinction sounds obvious, but first-time investors often forget it once they meet a friendly selling agent at an inspection. The selling agent can be helpful and professional, but they are still representing the other side of the transaction.

In NSW, government guidance current at 4 August 2026 says a buyer's agent must hold a real estate agent's licence, or hold a certificate of registration and work under the direction of a licensed real estate agent. The NSW Government also lists finding, assessing and shortlisting properties, researching fair value, inspecting, negotiating, auction bidding and following the transaction through to completion among the services a buyer's agent can provide. Requirements differ between states and territories, so buyers should check the regulator in the jurisdiction where the agent operates. NSW Government buyer's agent guidance

In practical terms, my work can include:

  • Clarifying the investor's budget, goals, timeframe and risk tolerance.

  • Developing a detailed buying brief before looking at individual properties.

  • Researching locations instead of defaulting to the suburb closest to the buyer.

  • Sourcing and comparing suitable on-market and off-market opportunities.

  • Reviewing comparable sales, rental evidence and property-specific risks.

  • Coordinating building and pest inspections and working with the buyer's conveyancer or solicitor.

  • Communicating with selling agents and negotiating within an agreed limit.

  • Supporting the buyer through exchange, settlement and the next stage of their portfolio plan.

When I bought my first investment property in 2012, I was doing the research around police shifts and trying to make sense of the market myself. I have since built a portfolio of six properties worth more than $4.5 million across different markets.

The biggest lesson was not how to find a property. Listings are everywhere. The real skill is knowing what to reject.

A property can look clean, sit in a familiar suburb and attract plenty of attention, yet still be a poor fit for your finances or long-term plan. Buying a property and building a property portfolio are not the same thing.

When is a buyer's agent worth paying for?

I am a buyer's agent, so it would be easy for me to say everyone needs one. That would not be honest. If you understand market research, have time to inspect and follow up, can assess value, know which professionals to involve and can negotiate without becoming emotionally attached, you may be capable of buying independently.

The service becomes more valuable when one or more of the following applies:

  • You are buying your first investment. You understand the idea of property investing but do not yet know how to assess markets, cash flow, demand or individual property risks.

  • You are buying outside your local area. Distance makes inspections, agent relationships and local verification harder to manage alone.

  • You are time-poor. Work, family and other responsibilities leave you searching late at night and making rushed decisions on weekends.

  • You are receiving conflicting advice. Every podcast, social media page and well-meaning relative seems to recommend a different location or strategy.

  • You find negotiation uncomfortable. You do not want to reveal your maximum budget, react emotionally or negotiate directly with an experienced selling agent.

  • You have found a property but want limited support. Negotiation-only or auction-bidding services may be more appropriate than paying for a full search.

The wrong comparison is simply the buyer's agent's fee against paying no fee. The more useful comparison is the fee against the value of the work being completed, the risks being investigated and the cost of getting a major purchase wrong.

That does not mean a fee automatically represents value. You still need to understand exactly what is included.

NSW Government guidance current at 4 August 2026 states that buyer's agents may charge a fixed fee or a percentage of the purchase price, and that the amount is negotiable because it is not set by law. Rules and common fee structures may differ elsewhere in Australia. NSW Government information on fees and agency agreements

Before signing an agency agreement, ask:

  • Is the fee fixed, percentage-based or a combination?

  • When is each payment due?

  • Which services and locations are covered?

  • Is there an additional charge for auction bidding, travel or inspections?

  • What happens if no suitable property is purchased?

  • How can the agreement be ended?

  • Does the agent receive referral payments or other third-party benefits?

If the answers are vague before you sign, communication is unlikely to improve once the search begins.

What should you expect a buyer's agent not to do?

A buyer's agent should make the decision clearer. They should not pretend they can remove every risk.

No buyer's agent can genuinely guarantee future capital growth, permanent tenants, a particular rental return or that a property will never require expensive repairs. ASIC's Moneysmart guidance, updated 30 June 2026, identifies costs, interest-rate changes, vacancies, high entry and exit expenses and possible loss of value among the risks of investment property. ASIC Moneysmart investment property guidance

A buyer's agent also does not replace the other professionals required for a sound purchase:

  • A mortgage broker or lender assesses finance options and borrowing.

  • A solicitor or conveyancer provides legal advice and reviews the contract.

  • A qualified building and pest inspector assesses relevant physical defects.

  • An accountant or registered tax adviser advises on tax matters.

  • A licensed financial adviser, where appropriate, provides personal financial advice.

The buyer must still make the final decision. My job is to provide evidence, explain the trade-offs, challenge weak assumptions and negotiate firmly. I do not want a client saying yes because I told them to. I want them to understand why the property fits and what could still go wrong.

Be cautious of anyone selling certainty. Property is a large, illiquid investment. Confidence should come from a disciplined process, not a promise.

How do you choose the right buyer's agent?

Start with verification, not social media followers. For a NSW agent, the Verify NSW register can show the licence or certificate category, conditions, issue and expiry dates, and recorded disciplinary action from the relevant start date. If the agent is acting in another jurisdiction, check the relevant state or territory register. NSW Government licencecheck guidance

Then ask questions that expose how the business actually operates:

1. Who will handle my search? Find out whether you will work with the person you met or be handed to another team member after signing.

2. Do you represent buyers only in the transaction? Ask about conflicts, developer relationships, selling stock and referral payments.

3. How do you select markets and properties? Look for a repeatable research and due-diligence process, not a list of fashionable suburbs.

4. What will I receive before approving a property? Ask to see the type of analysis, comparable sales and risk information provided.

5. How will we communicate? Agree on response times, inspection updates and who coordinates the other professionals.

6. What happens when a property does not meet the brief? A credible buyer's agent should be comfortable recommending that you walk away.

7. What is included in the fee? Read the agency agreement and obtain legal advice if you do not understand it.

I would also ask about the agent's own experience. Personal investing does not automatically make someone a good professional, but it is fair to ask whether they have made the type of decisions they are asking you to make.

The best working relationship is not one where the client blindly agrees. It is one where questions are welcomed, the evidence is visible and both sides are prepared to reject a property that falls short.

Frequently asked questions

Do buyer's agents have access to off-market properties?

Some buyer's agents gain access to properties through selling-agent relationships before those properties are publicly advertised. However, off-market does not automatically mean underpriced or suitable. The property still needs the same research, valuation evidence and due diligence as an advertised listing.

Can a buyer's agent guarantee an under-market purchase? No credible professional should guarantee that every purchase will be below market value. A buyer's agent can research comparable sales, assess fair value and negotiate within an agreed limit. Market value is still an estimate, and the final price reflects the property, competition and vendor's position at that time.

Can I use a buyer's agent only for negotiation or an auction? Yes. Service levels can vary. If you have already found and assessed the property, negotiation-only or auction-bidding representation may be appropriate. Confirm the exact scope, fee and authority in writing before engaging the agent.

Does using a buyer's agent remove the need for other professional advice? No. A buyer's agent coordinates and supports the purchase but does not replace finance, legal, tax, financial-advice or building-inspection professionals. Each adviser should stay within their licensed area of expertise.

About Thomas Vu and Borderless Investments

I founded Borderless Investments after building my own property portfolio while serving in the NSW Police Force. I know what it is like to research property around long shifts, family commitments and limited time. That is why my service is direct, practical and built around clear explanations rather than hype.

Borderless Investments is based in Carlton, NSW. I assist investment property buyers Australia-wide and owner-occupier buyers within the Georges River Council local government area. Services include full-service property purchasing, buyer advocacy and strategy, negotiation-only support, and auction-bidding representation.

If you are preparing to buy your first investment property and want an honest conversation about whether you need professional support, visit Borderless Investments or book a free discovery call through the website.

Sources and references 

This article is general educational content only. It reflects the author's own views
and experience and is not financial, legal, or property investment advice. It does not
take into account your personal circumstances. Consider your own situation and seek
professional advice before making any decision.