A real estate agent selling a property works for the vendor: the vendor appoints them, pays them, and is the client whose interests they must put first. A buyers agent is a licensed agent you appoint and pay to find, assess and negotiate a purchase for you. Same licence family, opposite side of the deal.
If you are an investor weighing up our buyers agent service or anyone else’s, the table below is the short version. The rest of the page explains each row, including when you do not need a buyers agent at all.
| Selling agent (real estate agent) | Buyers agent | |
|---|---|---|
| Client | The vendor | The buyer |
| Appointed by | The vendor, under an agency agreement | The buyer, under an engagement agreement |
| Paid by | The vendor, usually commission on the sale price | The buyer, a fixed fee or a percentage of the purchase price |
| Paid more when | The sale price is higher | Depends on the fee model: a percentage rises with the price, a fixed fee does not |
| Must put first | The vendor’s interests | Your interests |
| Still owes the other party | Honesty; must not mislead | Honesty; must not mislead |
| Typical work | Pricing, marketing, open homes, running offers or the auction | Strategy, shortlisting, inspection, due diligence coordination, valuation, negotiation, bidding |
Who does each agent legally work for?
Their client. The law sets this out in the rules of conduct, and NSW publishes them plainly. Under the Property and Stock Agents Regulation 2022, every agent must comply with the fiduciary obligations arising as an agent, must act in the client’s best interests at all times unless doing so is unlawful, and must not accept or continue an appointment where it puts the agent’s interests in conflict with the client’s (Schedule 1, rules 2, 6 and 11).
Consumer Affairs Victoria states the same principle for Victorian agents: they must act in the best interest of their clients and must not put their interests in conflict with a client’s, and it gives acting for both a seller and a buyer as an example of a conflict.
Buying for someone else is regulated work, not a loophole. In NSW, acting as agent in a property transaction for reward is a real estate agent function under the Property and Stock Agents Act 2002 (section 3A). In Queensland, a real estate agent licence authorises the holder to buy property as an agent for others for reward (Property Occupations Act 2014, section 26). Check any agent on your state’s register; we list them in questions to ask a buyers agent before you sign.
What does a selling agent still owe me as a buyer?
More than people assume. NSW requires every agent to act honestly, fairly and professionally with all parties in a transaction, and not to mislead or deceive a party in negotiations (Schedule 1, rule 3). NSW also requires a selling agent’s estimate of a home’s likely selling price to remain a reasonable estimate, and to be revised in writing if it stops being one (Property and Stock Agents Act 2002, section 72A).
What a selling agent does not owe you is advice on whether the property is a good buy, what you should offer, or what the vendor will accept. That is not dishonesty. It is simply not their job, because you are not their client.
How is each one paid?
The selling agent’s commission comes out of the vendor’s proceeds under the agency agreement. Because it is usually a percentage of the sale price, a higher price means a higher fee.
A buyers agent is paid by you. Most engagements split into an upfront fee when you sign and a success fee when you buy. Under a percentage model, your agent earns more as the price rises, the lever you most want pushed the other way; plenty of good agents charge this way, but know it. Under a fixed fee the incentive on price is neutral. House Finder’s fees are fixed upfront and depend on the service you need (full search or negotiation only) and where you are buying, with no commissions from sellers or agents. Ask us for the figure in writing.
The question that matters most is whether anyone else pays your buyers agent. An agent who takes commissions from developers or project marketers is paid by both sides. Ask in writing.
Can one agent act for both buyer and seller?
Not without a conflict. The selling agent’s client is the vendor; an agent who also advised you as a buyer on the same property would be serving two clients with opposite interests, which is exactly the conflict the NSW rules and Consumer Affairs Victoria describe. Be wary of a selling agent who offers to “look after” you on a purchase they are selling.
When do you not need a buyers agent?
Honestly, often. You are a reasonable candidate to buy without one if most of these are true:
- You know the streets you are buying in, and have followed sales there for a year or more.
- You have time to inspect properly and repeatedly.
- You are comfortable reading contracts with your conveyancer or solicitor and organising building and pest reports yourself.
- You can hold your nerve at auction or in a multi-offer negotiation.
- The market you are buying in is not especially competitive right now.
We say this on calls too. Paying a fee to buy one property in a suburb you know intimately is hard to justify.
When does a buyers agent earn the fee?
It gets easier to justify when:
- You are buying in a city you do not live in, so inspection and local knowledge are the hard part.
- You have lost properties you should have won, and the problem is competing, not finding.
- You are an investor and need the purchase judged on rent, vacancy, land content and supply, not on how the kitchen looks. Here is how to identify growth suburbs the way we do.
- You want access to off-market property, which means less competition and room on terms. It is never a guaranteed discount, and property values can fall.
House Finder acts for buyers only, and only for investors, in Sydney, Melbourne, Brisbane, Perth and Adelaide. We do not sell property.
Book a strategy call and we will tell you which list you are on.
About the author. Simon Loo is the founder of House Finder and was named Buyers Agent of the Year, Residential Investment, at the Australian Buyers Agent Awards 2026. General information only; not legal, financial, credit or tax advice. Agency law differs between states; check the rules where you are buying.
FAQ
What is the difference between a buyers agent and a real estate agent?
A real estate agent selling a property is appointed and paid by the vendor and must act in the vendor’s best interests. A buyers agent is appointed and paid by the buyer to find, assess and negotiate a purchase, and must act in the buyer’s best interests. Both must be honest with everyone in the transaction.
Who does the real estate agent work for when I buy a house?
The selling agent works for the vendor. In NSW every agent must act in their client’s best interests, but must also act honestly and fairly with all parties and must not mislead or deceive a buyer in negotiations.
Who pays a buyers agent?
The buyer. Most buyers agents charge an upfront fee when you sign and a success fee when you buy, set either as a fixed amount or a percentage of the purchase price. Ask in writing whether they receive any other payment from sellers, developers or referral partners.
Can a selling agent also act as my buyers agent?
Not on the same property without a conflict of interest, because their client is the vendor. Consumer Affairs Victoria gives acting for both a seller and a buyer as an example of a conflict that agents must avoid.
Do I need a buyers agent to buy a property?
No. Many buyers do well without one, particularly in a suburb they know well, with time to inspect and a conveyancer to review the contract. A buyers agent is most useful when buying interstate, in competitive markets, or when investment criteria such as rent, vacancy and supply drive the decision.
Do buyers agents guarantee below-market purchases?
They cannot guarantee it, but agencies like House Finder specialise in sourcing properties with instant equity potential, often aiming for purchase prices below market value.
Does a buyers agent need a licence?
Yes. Buying property for someone else for reward is regulated real estate agency work, for example under the Property and Stock Agents Act 2002 in NSW and the Property Occupations Act 2014 in Queensland. Check the agent on your state’s public licence register before you sign.
