A buyer's agent can save you money and protect you from a bad purchase, but only if you hire the right one. The quality varies, and so does the independence. Before you sign an engagement, put these five questions to any buyer's agent you are considering. Their answers tell you most of what you need to know.
1. Are you completely independent, or do you take any payment from sellers or developers?
This is the most important question. A genuine buyer's agent works only for you and takes no commission, kickback or referral fee from sellers, developers or projects. If an agent earns anything from the other side of the transaction, their advice is compromised, because they have a reason to steer you toward properties that pay them. Be especially wary of a buyer's agent operating inside a traditional sales office or pushing house-and-land packages. Ask directly whether they receive any payment from any source other than you, and get the answer in writing.
2. How is your fee structured, and what does it include?
Fees vary widely, typically a percentage of the purchase price or a flat fee in the range of $8,000 to $30,000 plus GST. Either way, you want to know exactly what the fee covers, search, due diligence, negotiation, auction bidding, settlement support, and what costs extra. A percentage fee has a built-in tension, since the agent earns more if you pay more, so understand how they manage that. Ask what happens if you do not buy anything, and whether any part of the fee is refundable. Clarity on fees up front prevents friction later.
3. What is your track record, and can I speak to recent clients?
Ask for specific, recent results: properties bought, prices paid against asking or against comparable sales, and how long the searches took. Then ask for the contact details of three recent clients and actually call them. A confident, competent agent will hand these over without hesitation. Vague answers, or reluctance to connect you with past clients, is a signal to keep looking. You are about to trust this person with one of your largest financial decisions, so verify the record rather than taking it on faith.
4. Do you hold a current licence, and in which states do you operate?
Buyer's agents must be licensed under the same regulatory framework as real estate agents. Confirm the agent holds a current licence and check it against the relevant state authority. If you are buying interstate, confirm they are properly licensed and genuinely knowledgeable in that market, not just operating remotely off second-hand data. Local market knowledge is a large part of what you are paying for, so an agent's footprint and licensing matter.
5. What is your process, and how will you communicate with me?
Ask the agent to walk you through how they work, from understanding your brief to shortlisting, inspecting, assessing value and negotiating. A strong agent has a clear, repeatable process and can explain it plainly. Also pin down communication: how often you will hear from them, in what form, and who your point of contact is. A mismatch in expectations here is a common source of frustration, so settle it before you engage.
JSC Property Investments welcomes every one of those questions, because we've got straight answers to all of them. Book a Kickoff Call with our team and put us to the test.