Buyers Agent vs Selling Agent Difference | Who Works for You?

When you walk into an open home, the friendly agent greeting you often feels like an ally.

We see this misconception cost Australians money every single weekend.

The agent’s smile is genuine, but their legal contract ties them strictly to the seller.

This fundamental truth surprises many homebuyers.

Our team knows that failing to understand this distinction is the first step toward overpaying.

Understanding who represents whom in property transactions is essential for making informed decisions.

Book a consultation to discuss how buyer representation works.

So, let’s break down the legal realities and look at the actual math behind having an expert in your corner.

The Critical Difference

Selling Agent (Real Estate Agent)

Who Pays Them: The seller (vendor) Legal Duty: To act in the seller’s best interest (Fiduciary Duty) Goal: Achieve the highest possible price for the seller Compensation: Commission based on sale price (typically 1.6%-3.5% in Australia)

The selling agent’s job is to:

Market the property effectively to create “FOMO” (Fear Of Missing Out).
Generate buyer interest and competition.
Obtain the best possible price and terms for the seller.
Manage the sales process to meet the vendor’s timeline.

They may be helpful and professional, but their professional obligation is to the person paying them: the seller.

Buyers Agent

Who Pays Them: The buyer Legal Duty: To act in the buyer’s best interest Goal: Secure the right property at the best possible price Compensation: Fixed fee or percentage paid by buyer

The buyers agent’s job is to:

Search for suitable properties (including silent listings).
Evaluate properties objectively using data.
Identify issues and concerns like strata flaws or poor zoning.
Negotiate the lowest possible price.
Represent buyer interests throughout settlement.

Why This Matters Financially

The Information Asymmetry

Selling agents know things you don’t.

We often see agents holding cards like the seller’s minimum acceptable price or “reserve.”

They also know how long the property has really been on the market.

Our experience confirms they understand the seller’s timeline pressures intimately.

They know exactly what other buyers have offered.

This information shapes negotiation. Without it, you’re negotiating blind.

The Skill Imbalance

Selling agents negotiate property sales every day.

Most buyers negotiate a property purchase a few times in their lives.

It’s like a casual tennis player competing against a professional. The outcome is predictable.

The Alignment Problem

When a selling agent tells you “this is a great property” or “there’s lots of interest,” consider their motivation.

They benefit from:

You buying quickly (less work for them).
You paying more (higher commission).
You not negotiating hard (easier sale).

Their advice isn’t neutral because their interests aren’t aligned with yours.

Common Selling Agent Tactics

Recognising tactics helps you respond appropriately:

“There’s Another Buyer Very Interested”

The Fact: This creates urgency and can trigger a “Dutch Auction” scenario. The Reality: Sometimes it is true, but often it is exaggerated to push your offer up. Your Move: Ask specific questions like “Have they signed a contract note?” or “Is their offer unconditional?” With Buyers Agent: We verify interest levels through our industry contacts.

”The Owner Has Rejected Lower Offers”

The Fact: Agents use this to set a price floor in your mind. The Reality: Those previous offers might have had poor terms or long settlement periods. Your Move: Every offer is different. Previous rejections don’t preclude acceptance of a clean, unconditional offer. With Buyers Agent: We understand negotiation positioning and terms that appeal to vendors.

”This Price Is a Bargain”

The Fact: Underquoting laws in Australia (like the Estate Agents Act in Victoria) prohibit misleading pricing, but “guides” are flexible. The Reality: A “price guide” is often the bottom of the range, not the likely selling price. Your Move: Ignore the agent’s guide and verify with comparable sales data from the last 3 months. With Buyers Agent: We provide objective market analysis based on actual settlement data.

”The Market Is Hot”

The Fact: Clearance rates vary wildly by suburb, price point, and property type. The Reality: A “hot” national market doesn’t mean this specific house is in high demand. Your Move: Research your specific segment’s days-on-market stats. With Buyers Agent: We provide nuanced market intelligence.

”You Should Offer Close to Asking”

The Fact: Agents want to close the sale quickly to meet monthly targets. The Reality: Your offer should reflect the property’s value to you, not the vendor’s wish list. Your Move: Base your offer on facts and recent comparable sales. With Buyers Agent: We determine appropriate offer levels.

The Selling Agent’s Dilemma

In fairness, selling agents face a genuine conflict.

To the Seller: They owe maximum effort to achieve the highest price. To the Buyer: They must be honest and not mislead under Australian Consumer Law.

These obligations can coexist, but when they conflict, the seller wins. Always.

A selling agent might:

Answer your questions honestly without volunteering extra information.
Present the property favourably without lying about material facts.
Encourage offers without revealing the true reserve price.
Create competition without fabricating interest.

This is legal and expected. But it’s not advocacy for you.

What a Buyers Agent Does Differently

Independent Search

We find properties based on your criteria, not seller listings.

This includes accessing “silent listings.”

Recent data from groups like REBAA suggests up to 20% of properties are sold off-market.

Our network gives you access to these before the public sees them on Domain or Realestate.com.au.

Objective Evaluation

No property is “perfect” because we’re not selling it to you.

We tell you:

What’s wrong with the property (e.g., structural issues or poor orientation).
What repairs will cost.
How it compares to alternatives in the same school catchment.
Whether the price is justified by recent sales.

Professional Negotiation

We negotiate knowing:

Market data and comparable sales.
The property’s genuine value.
Seller motivations (where possible).
Negotiation tactics and counters.

Process Management

We handle:

Inspection coordination.
Building and pest report review.
Contract review guidance alongside your solicitor.
Settlement liaison.

The Cost Question

Buyers often ask: “Why pay for a buyers agent when I can deal directly with the selling agent?”

The False Economy

The selling agent’s commission comes from the seller regardless of who buys.

You don’t save the 2% commission by representing yourself.

The Real Calculation

Consider a typical $900,000 property in a capital city:

Without Buyers Agent

Purchase price: $900,000
Negotiations: You vs professional
Market intelligence: Limited
Risk: Overpaying by $20k-$50k due to emotion

With Buyers Agent

Buyers agent fee: ~$15,000-$20,000 (approx)
Likely negotiated saving: $30,000-$60,000
Market intelligence: Comprehensive
Risk: Significantly reduced

The maths often favours buyers agent engagement.

This is particularly true when:

Properties are competitively priced.
Multiple buyers are competing at auction.
You lack negotiation experience.
Your time is valuable.

Time Value

Beyond price, consider time.

We save clients countless hours searching online.

You avoid wasting weekends at inspections for unsuitable homes.

Our process removes the stress of decision-making.

For many buyers, professional assistance delivers value beyond negotiation savings.

When You Might Not Need a Buyers Agent

Fair disclosure: buyers agents aren’t for everyone.

You might manage alone if:

You have property buying experience and know the local market intimately.
You’re buying in a slow market with little competition.
You have extensive time to dedicate to due diligence.
The property is fairly priced and you’re comfortable paying the asking price.
You enjoy the process of hunting and negotiating.

You likely benefit from a buyers agent if:

You’re time-poor.
The market is competitive with low stock levels.
You’re uncomfortable negotiating face-to-face.
You’re buying from interstate (e.g., moving to Brisbane from Sydney).
You want access to off-market properties.
The purchase is significant (financially or emotionally).

Questions to Ask Any Agent

Whether you use a buyers agent or not, these questions clarify representation.

To Selling Agents

“Who do you represent in this transaction?”
“Are you obligated to tell me if there are material facts affecting this property?”
“Will you tell me what other buyers have offered?”
“What’s the lowest price the seller will accept?”

Expect honest but limited answers. They represent the seller.

To Buyers Agents

“Do you receive any kickbacks or payments from sellers or selling agents?”
“How do you get paid?”
“What happens if you find a property through your own network?”
“Are you a member of a professional body like REBAA?”

Expect transparency. We represent you.

The Bottom Line

Property transactions involve large sums of money and significant complexity.

Representation matters.

A selling agent’s job is to get the seller the best outcome.

That’s not wrong—it’s their professional duty under the law.

But recognising this reality helps you make informed decisions.

A buyers agent’s job is to get you the best outcome.

Our success is measured by your satisfaction, not the sale price achieved for someone else.

Want professional representation for your property purchase? Our complete buying service provides end-to-end buyer representation. No seller relationships, no conflicting interests—just expert advocacy for your property purchase.