Renters Jasmin and Jason saved to afford a $13,000 buyer’s agent fee that would help secure an investment property that fit their budget.<\/p>\n
They had no idea the fee designed to save them time and money would turn their property hunt into a nightmare experience.<\/p>\n
A buyer’s agent is hired to represent the buyer by finding, evaluating, and negotiating a property purchase on their behalf.<\/p>\n
In December, the Sydney couple, with advice from their buyer’s agent, purchased a $405,000 property in Wodonga in regional Victoria.<\/p>\n
It was at this point, when they should have been celebrating their purchase, that things started going south.<\/p>\n
<\/p>\n
The Wodonga home had several defects to be fixed before it could be tenanted. (Supplied)<\/p>\n
Emails seen by the ABC showed that the buyer’s agent had assured them that the appliances were working and backyard rubbish would be removed.<\/p>\n
But after settlement, the couple received a list of issues from the property manager that needed to be fixed before the property could be rented.<\/p>\n
They were left with $15,000 in repair bills and lost rent due to the buyer’s agent overlooking Victoria’s tough rental regulations.<\/p>\n
“There were appliances not working, ceiling fans were bent, switches missing, broken pipes, and piles of rubbish,” Jason said.<\/p>\n
The buyer’s agent never inspected the property in person, relying solely on a video walk-through.<\/p>\n
The couple said when they questioned the building and pest report, they were told the issues “wouldn’t stop us from getting tenants” \u2014 a claim they later found to be untrue.<\/p>\n
“He even said he would add it to his own property portfolio,” Jasmin said.<\/p>\n
“We’re not top earners. We’re Sydney renters trying to get ahead, and we feel blindsided and taken advantage of.”<\/p>\n
The buyer’s agent has offered the couple a full refund, but the couple said they refused it because of the condition not to speak about their experience.\u00a0<\/p>\n
They said they were sharing their story to warn others to be wary of the buyer’s agent industry.<\/p>\n
Qualification issues<\/p>\n
Bendigo real estate agent Russell Muir said he had never seen so many buyer’s agents in his 30-year career.<\/p>\n
“In the past year, there’s been a surge in buyer’s agents contacting us,” he said.<\/p>\n
“They can be demanding \u2014 sometimes unrealistic \u2014 about terms, conditions, and response times, trying to prove their value to clients.”<\/p>\n
<\/p>\n
Russell Muir says he has seen an increase in buyer’s agent approaching him. (ABC Central Victoria: Sarah Lawrence)<\/p>\n
In Bendigo, Mr Muir said he often dealt with agents who never inspected the properties they pitched to clients.<\/p>\n
“They wouldn’t even know what the neighbours look like,” he said.<\/p>\n
“They rely on Google Maps \u2014 but so can the buyer.”<\/p>\n
Real Estate Buyers Agents Association of Australia (REBAA) president Melinda Jennison warned that inexperienced buyer’s agents were causing headaches for customers.<\/p>\n
<\/p>\n
Melinda Jennison is calling for more regulation for buyer’s agents. (ABC News)<\/p>\n
Some online courses offer buyer’s agent qualifications for as little as $200, but Ms Jennison said they failed to teach key legislative requirements.<\/p>\n
REBAA estimates around 2,000 buyer’s agents are working in Australia, though no official figures exist.<\/p>\n
Since 2022, automatic mutual recognition has allowed qualifications to transfer between states.<\/p>\n
While New South Wales and Victoria require two years of mentoring before independent practice, it is not required in other states such as Queensland.<\/p>\n
\u00a0“Some agents get licensed in Queensland and use mutual recognition to work independently in other states without proper supervision,” Ms Jennison explained.<\/p>\n
Calls for better regulation<\/p>\n
Ms Jennison said she wanted tighter regulations as the industry expanded.<\/p>\n
“Loopholes should be closed, but for now, consumers must check that their buyer’s agent is licensed, insured, and follows ethical guidelines,” she said.<\/p>\n
Castlemaine buyer’s agent Sue Edmonds said she insisted on inspecting every property she recommended.<\/p>\n
<\/p>\n
Sue Edmonds says she always walks through properties for clients. (ABC Central Victoria: Sarah Lawrence)<\/p>\n
“Home buying is an emotional investment, and it’s a massive responsibility to do right by clients,” she said.<\/p>\n
“You can’t do that without experience.”<\/p>\n
She said she had also seen newcomers treating the industry as a quick money grab.<\/p>\n
“Regulation is important, but client awareness matters most \u2014 knowing an agent’s background, expertise, and due diligence process,” she said.<\/p>\n
Experience counts<\/p>\n
While some buyer’s agents face growing scrutiny, some buyers find their expertise invaluable.<\/p>\n
Melbourne’s Llew Stevens enlisted a buyer’s agent to help him bid and negotiate at auction for his first home earlier this year.<\/p>\n
<\/p>\n
Llew Stevens used a buyer’s agent to help him at a Melbourne auction. (Supplied)<\/p>\n
“Experience breeds competence,” he said.<\/p>\n
“I’ll only buy a few homes in my life, but they do this all the time.”<\/p>\n
For $3,000, he gained expert guidance and auction strategies, which he believed saved him $10,000 \u2014 and a lot of stress.<\/p>\n
“Having someone by my side to calm my nerves and navigate the process was worth it,” Mr Stevens said.<\/p>\n
“On a $700,000 purchase, the cost of a buyer’s agent felt like a drop in the ocean.”<\/p>\n
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