Buyers Agent vs Real Estate Agent: Key Differences Explained

Key Takeaways

• Buyers agents work exclusively for you – their loyalty lies with the purchaser, not the vendor
• Real estate agents represent sellers – they’re legally obligated to achieve the highest price for their client
• Access to off-market properties – buyers agents can source properties that never hit the public market (up to 60% of deals)
• Fee structures differ significantly – buyers agents charge 1-2% of purchase price, while real estate agents charge 1.6-3.5% paid by sellers
• Professional expertise varies – each brings different skills and networks to serve their respective clients

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Every weekend, thousands of Australians attend open homes, scroll through property listings, and dream of finding their perfect property. Yet many buyers enter this competitive market without understanding a fundamental truth: not all property professionals are working in your corner.

Picture this scenario: You’ve found what seems like the perfect home. The listing agent is friendly, helpful, and eager to assist. They’re answering all your questions, providing market insights, and even suggesting what offer might be accepted. But here’s what many buyers don’t realise, that agent’s primary obligation isn’t to you. Their loyalty, their commission, and their legal duty all point in one direction: towards the seller.

This misunderstanding costs Australian buyers thousands of dollars every year. With median house prices exceeding $900,000 in major cities and auction clearance rates consistently above 70%, the stakes have never been higher. Understanding the difference between a buyers agent vs real estate agent isn’t just helpful, it’s essential for anyone serious about making smart property decisions.

Let’s pause on all this advice and step into a real-world scenario. Years ago, I worked with a young couple, Sarah and Tom, who’d spent six heart-wrenching months in Sydney’s red-hot market. Each weekend they’d be chatted up by smiling listing agents, encouraged just enough to believe they had a shot. Over coffees, they’d compare notes and admit they felt “looked after” until, time and again, their offers fell short, or key details about the property came out only after they’d emotionally committed. When they finally reached out to me for help, the first thing I told them was simple: “The listing agent isn’t your ally, they’re working for the seller.” The relief was almost visible. For the first time, someone was combing through off-market listings, negotiating exclusively for their interests and treating their money like it was their own. Within weeks, Sarah and Tom had access to properties they never knew existed and ended up securing their dream home, within budget, without last-minute surprises. Their journey wasn’t just about property: it was about shifting from feeling powerless to empowered, all because they finally understood which professional had their back. This, more than any market stat, is why knowing the difference between a buyers agent and a real estate agent matters so deeply.

The confusion between these two professional roles stems from the fact that both are licensed real estate professionals who facilitate property transactions. However, their allegiances, motivations, and services couldn’t be more different. As PropertyChat.ai founder Jane Slack-Smith explains based on her 20+ years in the industry, “The big difference is who they’re working for.”

What Is a Real Estate Agent?

A real estate agent, also known as a selling agent or listing agent, is a licensed professional who represents property sellers throughout the marketing and sales process. Their primary responsibility is achieving the best possible outcome for vendors, the people who’ve engaged them to sell their property.

Core Responsibilities of Real Estate Agents

Real estate agents wear many hats in service of their seller clients. They conduct thorough market appraisals to determine appropriate listing prices, create comprehensive marketing campaigns, and coordinate professional photography and property styling. Their expertise extends to managing open inspections, private viewings, and handling enquiries from potential buyers.

The agent becomes the central point of contact for all buyer interactions, providing information about the property while working to generate competitive interest. They handle price negotiations from the seller’s perspective, advising vendors on offers and market conditions to help them make informed decisions.

Commission Structure and Motivation

Real estate agents typically earn between 1.6% and 3.5% of the final sale price, paid by the seller upon successful completion. This commission structure creates a direct incentive to achieve the highest possible sale price, the more the property sells for, the more the agent earns.

This alignment with seller interests shapes every interaction agents have with potential buyers. While they may appear helpful and accommodating, their professional obligation is to maximise the vendor’s return, not minimise the buyer’s cost.

What Is a Buyers Agent?

A buyers agent (also called a buyer’s advocate) is a licensed professional who works exclusively for property purchasers. Unlike real estate agents, buyers agents have a fiduciary duty to their clients,  the buyers, ensuring their needs, budget, and investment goals take priority throughout the entire property search and purchase process.

Core Services of Buyers Agents

Buyers agents provide comprehensive support that extends far beyond simple property finding. They conduct detailed market research, accessing both listed and off-market properties that represent approximately 30-40% of available inventory. Their services include property evaluation, due diligence, inspection coordination, and strategic negotiation on behalf of buyers.

Many buyers agents also offer auction bidding services, helping clients navigate the high-pressure environment of property auctions with professional bidding strategies. They provide detailed market analysis, helping buyers understand fair market value and avoid overpaying in competitive situations.

According to PropertyChat.ai, buyers agents “work exclusively for you, sourcing properties (including off-market ‘silent’ ones that make up 60% of deals), researching issues, negotiating the lowest price, and even bidding at auction on your behalf.”

Fee Structure and Investment Value

Buyers agents typically charge either a fixed fee ranging from $10,000-$20,000 nationally or a percentage-based fee of 1-2% of the purchase price. Unlike real estate agent commissions, these fees are paid directly by the buyer, ensuring the agent’s loyalty remains with the purchaser throughout the transaction.

This fee structure means buyers agents succeed when they help clients secure properties at or below market value, creating alignment between the professional’s interests and their client’s financial goals.

Key Differences Between Buyers Agents and Real Estate Agents

Representation and Loyalty

The fundamental difference lies in representation. Real estate agents work for sellers, with legal obligations to achieve the best outcome for vendors. Buyers agents represent purchasers exclusively, owing them complete loyalty and confidentiality.

This distinction affects every aspect of the transaction, from the advice provided to the negotiation strategies employed. As PropertyChat.ai notes, understanding this difference is crucial: “They might chat nicely with you, but their loyalty’s with getting the best deal for their client.”

Access to Off-Market Properties

Real estate agents market properties publicly through various channels to attract maximum buyer interest. Buyers agents, however, often have access to off-market and pre-market properties through their industry networks. Many properties never appear on public websites because vendors prefer discrete, private sales processes.

This exclusive access can be particularly valuable in competitive markets where desirable properties often sell before reaching public advertising campaigns.

Negotiation Approach and Strategy

When negotiations begin, the different allegiances become most apparent. Real estate agents work to achieve the highest possible price for sellers, using various techniques to encourage buyers to increase their offers. Buyers agents, conversely, develop strategies to secure properties at the best possible price for their clients, leveraging their market knowledge and negotiation experience.

Market Knowledge Application

Both professionals possess valuable market knowledge, but they apply it differently. Real estate agents focus on marketing strategies, property presentation, and pricing to maximise seller returns. Buyers agents concentrate on property evaluation, market analysis, and identifying opportunities that represent good value for purchasers.

When Should You Use a Buyers Agent?

Navigating Complex Market Conditions

Buyers agents become particularly valuable in competitive markets where properties regularly sell above asking price or auction clearance rates exceed 80%. Their professional expertise in reading auction dynamics and strategic bidding can mean the difference between securing a property and missing out repeatedly.

Managing Time Constraints

Time-poor professionals, interstate buyers, and those juggling busy schedules often benefit significantly from buyers agent services. These professionals become your eyes and ears on the ground, attending inspections, conducting research, and providing detailed reports on suitable properties.

Developing a Strategic Investment Approach

Property investors often engage buyers agents to help build portfolios strategically. With expertise in analysing rental yields, capital growth potential, and market cycles, buyers agents can help investors make informed decisions based on solid research rather than emotion.

Gaining Access to Off-Market Opportunities

PropertyChat.ai emphasises that buyers agents provide access to properties that “never hit the public market.” For buyers seeking unique properties or trying to avoid competitive bidding situations, this network access becomes invaluable.

When Working with Real Estate Agents Makes Sense

Leveraging Local Market Knowledge

Local real estate agents offer valuable insights into neighbourhood dynamics, upcoming developments, and community amenities. Their established presence in specific areas means they often know about properties before they’re officially listed, which can benefit buyers who build good relationships with agents.

Handling Straightforward Purchases

In buyer’s markets with abundant inventory and minimal competition, working directly with listing agents might suffice for experienced buyers who understand market values and negotiation tactics.

Managing Budget Considerations

For buyers working with limited budgets, particularly on lower-priced properties, the percentage-based fees charged by buyers agents might seem disproportionate. In stable markets with transparent pricing, confident buyers might successfully navigate purchases through listing agents.

Making the Right Choice for Your Situation

Assessing Your Property Needs

Start with honest self-assessment. Consider your budget and tolerance for professional fees if saving $20,000 on a purchase price justifies a $10,000 buyers agent fee, the financial case becomes clear. Evaluate your target market’s complexity by researching recent sales, days on market, and the percentage of properties selling above asking price.

Conducting Due Diligence on Professionals

Whether choosing a buyers agent or working with real estate agents, verify credentials through relevant industry bodies. PropertyChat.ai suggests asking buyers agents: “Do they sell too? What’s their track record in your suburbs? Licensed with PI insurance? Fixed fee? Strong contacts for off-markets?”

For real estate agents, research their recent sales performance, marketing strategies, and client testimonials to understand their approach and effectiveness.

Understanding Current Market Dynamics

First-time buyers often benefit significantly from professional guidance, while experienced investors might navigate standard purchases independently. Consider whether you need access to off-market properties and if you’re comfortable with competitive auction environments.

The Australian Property Market Reality Check

The Australian property market has become increasingly complex, with significant variations between cities, suburbs, and even streets. Recent data shows properties in major cities often sell within 28 days, with competitive markets like Perth, Brisbane, and Sydney seeing even faster turnover rates.

This rapid market movement means buyers don’t have the luxury of lengthy deliberation. Professional representation whether through buyers agents or skilled real estate agents can provide the expertise and market access needed to make confident decisions quickly.

PropertyChat.ai emphasises the importance of understanding these market dynamics: “Not all are equal, so interview a few. This is general info only; do your own due diligence and speak with a trusted professional.”

Building Relationships Beyond the Transaction

The relationship with property professionals often extends beyond single transactions. Successful buyers agents build ongoing relationships with clients, helping them develop long-term property strategies. Real estate agents with strong local networks can become valuable contacts for future property decisions, market insights, and professional referrals.

Both types of professionals can introduce clients to other property specialists including mortgage brokers, conveyancers, building inspectors, and renovation specialists, making them valuable hubs for property-related services.

Making Your Property Professional Decision

Choosing between working with a buyers agent or relying on real estate agents fundamentally shapes your property purchasing experience. The decision should align with your specific circumstances, market knowledge, available time, and financial goals.

Complex markets, limited time availability, or the desire for off-market access might point towards engaging a buyers agent. Straightforward purchases in transparent markets with experienced buyers might work well through direct interaction with listing agents.

Remember, as PropertyChat.ai built on Jane Slack-Smith’s 20+ years of property experience advises, both types of professionals bring value to the property market. The key is understanding their different roles and choosing the representation that best serves your specific needs and circumstances.

Whether you’re a first-home buyer, an experienced investor, or someone planning a strategic property purchase, selecting the right professional representation impacts both your experience and financial outcome. The investment in understanding these differences pays dividends in the form of better property decisions and potentially significant savings.

The distinction between buyers agents and real estate agents goes far beyond mere titles. It represents fundamentally different approaches to property transactions, with distinct loyalties, motivations, and value propositions. For serious property buyers, particularly in competitive markets, understanding this difference can mean the difference between securing your ideal property at a fair price or missing opportunities and overpaying.

As Australian property markets continue to evolve, the value of professional representation becomes increasingly important. Whether you choose to work with a buyers agent focused exclusively on your interests or navigate the process with real estate agents, making an informed decision about representation is a crucial step in your property journey.

For personalised advice on your property journey, consider exploring PropertyChat.ai’s resources or connecting with qualified professionals who can guide your specific situation.

Related Articles:

10 Mistakes Property Buyers Make and How to Avoid Them

Should I Use a Buyer’s Agent vs Going It Alone as a First-Time Investor?

What Does It Cost to Hire a Buyers Agent in Australia? The Complete 2025 Guide

How to Avoid Buyers Agent Scams: Your Complete Protection Guide

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This article is provided in line with the Brand Voice of PropertyChat and Your Property Success, emphasising trust, actionable advice, and long-term partnership in property finance.

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Transcript

Who’s Really Working Against You When Buying Property?

0:00You know, jumping into the property

0:02market can feel, well, pretty

0:03overwhelming. You’re about to make one

0:05of the biggest financial moves of your

0:07life, and there are experts and agents

0:09everywhere. But there’s this one huge

0:11thing a lot of people miss. Not everyone

0:13is actually on your team. So, let’s

0:15figure out who is really truly in your

0:18corner. So, picture this. You’re at the

0:20last open house you went to. The agent

0:23was probably super charming, knew

0:24everything about the neighborhood, and

0:26seemed genuinely excited to help you

0:28find your dream home. But let’s just ask

0:29the big question. Whose site are they

0:31really on? And look, this is totally the

0:35common experience, right? They answer

0:36all your questions. They give you a

0:38little insidefo on the market. Maybe

0:39they even suggest what you should offer.

0:41It is so easy to assume they’re your

0:43guide through this whole maze. But that

0:45little assumption, it could turn out to

0:47be a very expensive mistake. And believe

0:50me, the stakes could not be higher. With

0:53median house prices in major Australian

0:55cities rocketing past the $900,000 mark,

0:58even a small misunderstanding about who

1:00represents who can have huge financial

1:03consequences. All right, so let’s get

1:05into it. Let’s break down the two main

1:07players you’re going to meet on your

1:08journey and really uncover where their

1:10loyalties lie. Honestly, this is the

1:12absolute core of what you need to get

1:13your head around to play the game

1:15effectively. Okay, this right here, this

1:18is where it all becomes crystal clear. A

1:20real estate agent, sometimes called a

1:22selling agent, works for the person

1:24selling the house. Their legal

1:26obligation, their financial goal is to

1:28get the highest price possible. Now,

1:31flip that completely on its head. A

1:33buyer’s agent, they work only for you,

1:36the buyer. Their entire reason for being

1:38is to get you the best price and the

1:40best terms. So, let’s just define that a

1:43little more formally. the real estate

1:44agent or listing agent is legally and

1:47contractually tied to the seller, the

1:49vendor. Every single piece of advice,

1:51every negotiation tactic, it’s all

1:53designed to get the best deal for the

1:55person selling the house. Period. And

1:57then you have the complete opposite. A

1:59buyer’s agent has something called a

2:00fiduciary duty to you, the buyer. And

2:03that’s a fancy legal term that basically

2:05means they have to act in your best

2:08financial interests with total loyalty.

2:10They’re your champion, your advocate in

2:12the market. And look, this isn’t some

2:14tiny little detail we’re talking about.

2:16Like property expert Jane Slack Smith

2:19says, this is the big difference. It

2:22changes the entire game, the entire

2:25dynamic of how a property deal gets

2:26done. Okay, so we’ve nailed down the

2:29whole loyalty thing. We get it. But what

2:31does that actually mean for you when

2:32you’re out there trying to buy a house?

2:34Let’s break down the practical side of

2:35things. Allegiance, what you get access

2:38to, and maybe most importantly, who pays

2:40for what. I mean, look at this. The

2:42conflicting goals are just laid bare. In

2:45a negotiation, the selling agent is

2:47legally required to push that price up.

2:50The buyer’s agent is fighting to bring

2:52it down. But the real key is that last

2:54row, who’s paying the bill? The seller

2:56pays the real estate agent, which locks

2:58in their loyalty. You, the buyer, pay

3:00the buyer’s agent, which means their

3:02loyalty is 100% to you. But it’s not

3:05just about negotiation. There’s another

3:08huge advantage to having someone on your

3:10team, a secret weapon, if you will. It’s

3:13about getting access to stuff most

3:15people will never ever see. Just think

3:18about this number for a second. Up to

3:2060% 60% of properties can sell without

3:23ever hitting the public market. That is

3:26a total gamecher for anyone who’s been

3:27struggling in this crazy competitive

3:29market. So, what is this? This is the

3:32world of off-market properties. homes

3:35that are sold privately without ever

3:37showing up on the big real estate

3:38websites. What buyer agents do is build

3:41these deep networks with selling agents

3:43so their clients get the first look at

3:44these hidden gems. It’s how you can

3:46completely sidestep the stress of those

3:48weekend bidding moores. So really, it

3:51all comes down to this. Just follow the

3:53money. The seller pays the real estate

3:55agents commission, usually somewhere

3:57between 1.6 and 3 12%. The buyer pays

4:00the buyer’s agent a fee, typically

4:02around 1 to 2%. This whole payment

4:04structure, it’s the foundation of their

4:06loyalty. It tells you everything you

4:08need to know. Okay, so with all this

4:10info, how do you actually decide what’s

4:13right for you? Because this isn’t just

4:15about knowing facts. It’s about building

4:17a real strategy for your property hunt.

4:19Let’s take a real world example. Okay,

4:21let’s talk about Sarah and Tom. They

4:23were totally stuck for 6 months. They

4:25dragged themselves to open homes in a

4:27super hot market. They got friendly

4:29advice from all the listing agents and

4:31they really felt like they were being

4:32looked after, but they just kept missing

4:34out, always getting outbid. They were

4:36just completely burned out. And then

4:38they had that light bulb moment, that

4:40aha moment. The listing agent wasn’t

4:42their ally. So, they hired a buyer

4:45agent. That agent immediately opened the

4:47door to offmarket properties and took

4:49over the negotiation, fighting

4:50exclusively for them. And what happened?

4:52They got their dream home. They stayed

4:54within their budget and all that stress

4:56just disappeared. They literally went

4:58from feeling powerless to totally

5:00empowered. So, you might be asking, when

5:03does it really make sense to get a

5:04buyer’s agent? Well, if you’re short on

5:06time, if you’re trying to buy from

5:08another state, or if you’re just stuck

5:10in a ridiculously competitive market,

5:12they can be a lifesaver. It’s the same

5:14for investors looking for that strategic

5:15edge, or really anyone who wants a shot

5:18at those hidden offmarket properties.

5:20And hey, if you do decide to go down

5:22this path, you’ve got to do your

5:24homework first. Make sure they’re fully

5:26licensed and have the right insurance.

5:27Ask them to show you their track record

5:29in the suburbs you’re targeting. And

5:30this is a big one. Grill them about

5:32their network for those offmarket deals

5:34and get total clarity on how their fees

5:36work before you sign anything. So, look,

5:39just understanding this difference,

5:40that’s the first big step. But the next

5:43step is turning that knowledge into a

5:45real advantage out there in the market.

5:47So, here’s the bottom line. Getting the

5:49right pro on your side isn’t just

5:50another cost or a simple service. It’s a

5:52strategic investment in your outcome.

5:54It’s all about leveling the playing

5:56field and really giving yourself the

5:57best shot at success. So, after all

6:00this, the real question isn’t just how

6:03do I find a house? It’s, are you ready

6:05to stop being just a passive house

6:07hunter and become a truly strategic

6:10buyer? Are you ready to get your

6:12advantage? If you want to dig in even

6:14deeper, get more expert resources, or

6:16even connect with some trusted

6:18professionals who can help with your

6:19specific situation, a fantastic place to

6:22start is property chat.ai. Go check it

6:25out and make sure your next move is an

6:27informed one.

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