In response to the competitive and challenging property market in Australia, an increasing number of owner-occupiers and investors are seeking the services of buyer’s agents.
Matthew Symons (pictured above), of Balmoral Financial, reported a significant rise in demand for these professionals over the past five years, driven by a tightening housing supply.
According to Symons, buyer’s agents are becoming indispensable due to their ability to provide expert guidance, access to off-market listings, and enhanced negotiation capabilities.
“The biggest factor is definitely a tightening of the housing supply,” he said. “With fewer properties available, competition is fierce. Buyer’s agents give clients an edge.”
Current housing supply struggles to meet the growing demand.
According to the latest seasonally adjusted figures from the ABS, to meet the target, the country needs to build 60,000 homes every quarter, yet only 44,884 homes were completed in the first quarter starting July 1.
This shortfall exacerbates the tightness in the market, making the services of buyer’s agents more critical than ever.
Symons noted that the motivations for employing buyer’s agents vary between owner-occupiers and investors.
Owner-occupiers value local expertise that allows them unique access to properties, while investors look for agents with a national reach who can identify the best long-term investment opportunities across Australia.
Drawing parallels with the mortgage broking industry, Symons observed that buyer’s agents are increasingly recognised for their value, similar to how mortgage brokers became essential advisors in real estate transactions.
“Two decades ago, people were more sceptical of brokers... But as more buyers worked with brokers and saw the benefits, word spread,” he said, predicting a similar rise in trust and reliance on buyer’s agents.
Despite the advantages, some clients remain hesitant about using buyer’s agents, often due to concerns about costs and trust.
However, Symons suggested that the financial benefits, such as significant equity gains on property investments, can outweigh these concerns.
He anticipates that as community awareness grows and success stories circulate, more people will recognise the value of engaging a buyer’s agent, particularly if housing supply remains constrained.
REBAA president Melinda Jennison reports an uptick in such agents, who often provide minimal service for significant fees.
She advised buyers to vet agents carefully, looking for red flags like quick deal promises or exclusive off-market claims that require high premiums.
Jennison emphasised choosing agents who are licensed, affiliated with respected bodies like REBAA, and manage a reasonable client load to ensure ethical service.
