“What’s in a name? That which we call an agent, be it Buyers’ or Real Estate, would chase commissions over my investment goals.”
The soliloquy by Shakespeare’s Juliet would likely sound very different if she were an investor in the Australian property market. However, such skepticism against agents in general hugely and disproportionately undermines the numerous benefits and empowerment that a buyer’s agent can bring.
Therefore, let us, once and for all, understand the clear difference between Buyers’ agent and a Real estate agent so that the two cannot do not overshadow each others offerings for an investor.
Two Agents, Two Agendas
Buyers’ Agent and a Real Estate Agent are often clubbed together as they both serve the interests of the property market and deal with property investment. They both talk square footage, scout listings, and wear the air of authority in open homes.
This confuses the investors who have historically interacted only with the selling side of the property market. However, the loyalties of the two agent types lie on opposite ends of the property deal.
One represents your interest as a buyer; the other represents the seller’s. The incentives, intentions, and even the hustle differ vastly. Let’s break this down:
- Loyalty & Representation
- Buyers’ Agent: Works exclusively for the buyer; their duty is to secure the best deal for you.
- Real Estate Agent: Works for the seller; their goal is to secure the highest possible price from you.
- Access & Options
- Buyers’ Agent: Has access to off-market properties and can widen your net beyond what’s publicly listed.
- Real Estate Agent: Only shows what’s in their portfolio or agency listings.
- Negotiation Strategy
- Buyers’ Agent: Negotiates to lower the price or improve terms for the buyer.
- Real Estate Agent: Negotiates to justify a higher price for the seller.
- Due Diligence
- Buyers’ Agent: Will independently assess the property’s flaws, resale value, and growth potential.
- Real Estate Agent: Might highlight what sells, but won’t emphasize the red flags.
- Payment Structure
- Buyers’ Agent: Paid by the buyer, usually through a flat fee or small percentage that can ensure alignment of goals.
- Real Estate Agent: Paid by the seller via commission, which is directly linked to the sale price.
- Loyalty & Representation
Making the Smart Choice
Choosing a Buyer’s Agent
If you’re buying in a new city or state and don’t have deep local knowledge, a Buyers’ Agent can serve as your eyes and ears on the ground, helping you avoid rookie mistakes.
For time-poor professionals or families who can’t spend weekends inspecting dozens of properties or decoding market data, their expertise can fast-track smart decisions.
Investors, especially those focused on long-term capital growth rather than emotional appeal, often rely on Buyers’ Agents to spot undervalued suburbs and hidden opportunities.
Buyer’s agent also helps when access to off-market properties, where competition is lower and deals can be sweeter, becomes critical.
Choosing a Real Estate Agent
If you’ve already found a property you like and simply need someone to help you move things forward, a Real Estate Agent might do the job.
If you’re still casually browsing and aren’t ready to engage seriously, interacting with real estate agents might feel easier and more casual.
Moreover, if you believe you’re confident about market prices and trends, and feel you can handle it solo, a Real Estate Agent may feel like the more convenient option.
However, confidence isn’t the same as objectivity. A Buyer’s Agent, even in such scenarios, might offer fresh insights that save you from overpaying or settling for less.
Conclusion
To call them the same just because they both wear suits and carry listings is like seeing a defense lawyer and a prosecutor as the same, just because they both work in courtrooms. One exists to protect you; the other to get the best deal for the other side. A Buyers’ Agent is your insider in a world where the house always wins. After all, in the million-dollar game of property, paying a few thousand to save a hundred thousand isn’t a cost, it’s a strategy.
