The Real Estate Buyers Agents Association of Australia (REBAA) has moved to reassure consumers in the wake of the collapse of Dashdot, which has left more than $10 million in prepaid fees owing to buyers who are unlikely to recover their money.
REBAA Vice President Zoran Solano said the situation has created unnecessary fear about the buyers’ agent profession and that it is critical for the public to understand that Dashdot’s fee model was an outlier and not the industry norm.
“From the information publicly available, it appears Dashdot was charging engagement fees in the realm of $15,000 per client,” Mr Solano said.
“That is significantly higher than what most reputable buyers’ agents charge upfront. “A typical engagement fee in our industry is usually between $1,000 and $5,000, depending on the business model.”
Mr Solano said the standard practice across the industry – and particularly among REBAA members – is for the majority of the fee to be paid only when a property goes unconditional or at settlement.
“A buyers’ agent should be driven by results,” he said.
“The engagement fee is simply a commitment to begin the search.
“The substantial portion of the fee is earned when we deliver a successful outcome for the client.
“That’s how consumers can protect themselves – by choosing a buyers’ agent whose fee structure aligns with performance and not promises.”
He said the Dashdot collapse should not be interpreted as a sign of broader instability in the sector.
“In any industry, there will be businesses that don’t make it because we see it in construction, hospitality, and across every sector,” Mr Solano said.
“But the majority of buyers’ agents, and especially REBAA members, operate with long-standing client relationships, repeat business, and sustainable fee models.
“This is an isolated case involving a business with practices that were not reflective of the wider profession.”
Mr Solano said that many REBAA members are currently experiencing steady demand from home buyers and long-term investors following the Federal Budget, with clients seeking professional guidance in a shifting market.
“Consumers can have confidence that professional buyers’ agents are continuing to service clients every day,” he said.
“Our members are focused on delivering value, navigating market conditions and acting in the best interests of buyers – not collecting large sums of money upfront.”
He urged buyers to conduct due diligence before engaging any property professional.
“If someone is asking for tens of thousands of dollars before they’ve done any work, that should raise a red flag,” Mr Solano said.
“A transparent fee structure, a modest engagement fee, and a success-based balance is what good buyers’ agency practice looks like.”
ENDS
For more information or to organise an interview with Mr Solano please contact:
Bricks & Mortar Media | media@bricksandmortarmedia.com.au | 0405 801 979
