The friendly agent at the open home is not on your side
Every professional in a property transaction is paid by someone, and whoever pays them shapes whose interests they serve. The who greets you at the door, the your lender orders, even the auctioneer calling bids — each one has a client, and for most of them it is not you. This step maps who represents whom so you stop treating friendly conversation as impartial advice.
- Nearly 30% of respondents reported difficulties dealing with their agent .
- Communication and transparency were named as the top areas needing improvement .
- The survey covered more than 130,000 property transaction participants between May 2023 and April 2024 .
The gap between what buyers expect from the selling agent and what the agent is actually obligated to deliver is where costly mistakes happen.
The selling agent works for the seller, by law
The real estate agent at the open home is paid a commission by the seller, typically between 1.6% and 3.5% of the sale price depending on location . Their legal obligation is to get the highest possible price for the vendor . This is their — the legal obligation that defines whose side they are actually on.
This does not mean selling agents are dishonest. They must deal fairly with buyers under the Australian Consumer Law and cannot mislead you about a property's features, history, zoning, or price . But "dealing fairly" is not the same as "representing your interests." The SA Law Handbook puts it plainly: "The land agent works for the vendor and is paid by way of a commission on the sale. The agent's income depends, to a large degree, on obtaining the best possible price for the vendor" .
Three common situations catch buyers out:
- Price guidance. The agent quotes $750,000 to $800,000. You stretch your budget to $820,000. The property sells for $920,000. In 2024, NSW Fair Trading issued more than 100 penalty notices for offences, and it remains the most complained-about practice in Australian real estate .
- Property advice. You ask if the property is a good buy. The agent says yes. Their commission depends on you buying it, and they are not qualified or obligated to give you investment advice.
- Negotiation. You tell the agent your maximum budget. Anything you disclose can be shared with the vendor.
Map every professional, then act on who pays them
The table below maps every professional you are likely to deal with during a property transaction, who pays them, and whose interests they serve.
Professional | Paid by | Works for | Your action |
|---|---|---|---|
Selling agent | Seller (commission on sale price) | Seller | Treat as the seller's representative. Verify everything independently. |
Your conveyancer / solicitor | You | You | Engage before you make an offer. They review contracts, run searches, and protect your legal position. |
Your (if engaged) | You | You | They search, evaluate, and negotiate on your behalf. |
Your mortgage broker | Lender (upfront and trail commission) | You, by law, since 2021 | Subject to a , but paid by the lender. Ask about their lender panel and commission structure. |
Your building and pest inspector | You | You | You choose and pay. They report to you. |
The lender's valuer | You (via loan fees) | The lender | Appointed by your lender to protect the lender's risk, not to confirm the property is worth what you are paying. |
Seller's conveyancer / solicitor | Seller | Seller | Prepares the contract and vendor disclosure. They act for the seller. |
Strata manager | Owners corporation (via levies) | Owners corporation | Administers the building, not the sale. Request strata records through your conveyancer. |
Your conveyancer or property solicitor is the one professional whose only job is to protect your legal position. They review the contract of sale before you sign, identify unfavourable special conditions, conduct title and planning searches, check the vendor disclosure is complete, and manage settlement . Engage one before you start making offers. If you wait until after signing, you have already committed to terms you may not understand.
The lender's valuer is a different trap. When you apply for a home loan, your lender orders a from its panel to protect its own financial position . Their job is to confirm the property is adequate security for the loan. A bank valuation that matches your purchase price does not mean you are getting good value — it means the bank is satisfied its loan is covered. For an independent opinion of what a property is worth, engage your own certified practising valuer through the Australian Property Institute.
And the selling agent cannot sit on both sides of the table. In NSW, Section 47 of the Property and Stock Agents Act 2002 prohibits an agent from acting for both buyer and seller in the same transaction without specific disclosure and consent . Similar rules apply in other states. If a selling agent offers to help you buy the property they are listing, walk. Engage a separate who has no financial relationship with the seller.