12 Nov 2021

Beware 'free' buyer's agent services

Red flags instantly start waving when words like “the seller pays the fee not the buyer” and “we will find your perfect investment property for free” appear on websites.

Ultimately property advisors will act for whoever is paying their fee.

Calling yourself an independent ‘buyer’s agent’ while selling property is simply dressing up the wolf in sheep’s clothing.

True buyer’s agents have a fiduciary duty by law to act in the best interests of their clients and this is legislated in each individual state’s real estate law.

They are licensed professionals who specialise in searching, locating, evaluating and negotiating the purchase of property on behalf of buyers. They do not sell real estate. They are engaged independently and paid for by the buyer to act on their behalf.

As a buyer you always need to ask if there is a vested interest in anything. Why are they wanting to act for you for free?

Usually it’s because they want to buy developer stock or sell a property within their sales agency network.

Free buyer’s agents are often selling agents in disguise.

They have a huge financial incentive to help buy you that property which isn’t necessarily in the buyer’s best interest.