What the Recent ABC Investigation Means for Sydney Property Buyers
When the ABC recently reported on a Sydney couple who bought an interstate investment property through a buyers agent only to face more than $15,000 in unexpected repairs, it struck a chord with us. Their story is a sobering reminder that while buyers agents can add enormous value, not all are created equal.
Read the ABC article here.
The Real Estate Buyers Agents Association of Australia (REBAA) warns that stories like this are becoming more common as the industry grows.
A Rapidly Growing Profession
The number of buyers agents has grown steadily across Australia in recent years, encouraged by the desire for professional guidance in a highly competitive property market.
Growth however has outpaced regulation and inconsistent licensing is a problem. New South Wales and Victoria now require buyers agents to hold a full real estate licence and complete ongoing professional development. Other states however, have less stringent requirements, and mutual recognition rules can allow agents in these less regulated states to operate in NSW and Victoria.
While many buyers agents are highly skilled and reputable, the ABC report highlights another issue: a wave of newcomers often with little or no prior property experience. Once in the industry, many discover that the job is more complex than expected and work is harder to obtain.
This combination creates two distinct problems: under-qualified operators knowingly or unknowingly cutting corners and a smaller but troubling group engaging in unethical or even illegal practices.
Problem One: Inexperience and Corner-Cutting
The ABC report highlighted how inadequate due diligence can cost buyers dearly. We’ve encountered buyer’s agents who:
- Make offers without strata or building inspections.
- Fail to check council development applications that could impact a property’s value.
- Rely on video walkthroughs rather than inspecting a property in person.
These shortcuts put clients at real financial risk.
Problem Two: Unethical and Sometimes Illegal Behaviour
Also concerning is the behaviour of some agents who are engaging in unethical and at times illegal practices:
- Breaching privacy laws by accessing and using the buyer contact details gathered by selling agents at open inspections to solicit new clients. We have received multiple unsolicited calls from other buyers agents offering to “help with our property search”—calls that could only stem from our information being passed on by a selling agent. When we let on that we are actually buyers agents ourselves and ask where they obtained our details, the caller typically feigns ignorance or ends the conversation abruptly.
- Predatory tactics at open homes or auctions. Some buyers agents treat public inspections as a hunting ground, approaching attendees to pitch their own services. We’ve seen agents intercepting people and handing out business cards. This behaviour goes well beyond normal networking; it can feel intrusive to buyers and undermines the professional atmosphere that open homes and auctions are meant to maintain.
What Can Be Done
How Buyers Can Protect Themselves
Before engaging a buyers agent, take time to verify their credentials and track record:
- Confirm licensing and insurance: Check that they hold a current real-estate licence in your state and carry professional indemnity insurance.
- Ask about experience: Find out how long they have been in business and whether they specialise in the area or property type you’re considering.
- Seek professional affiliations: Membership of recognised bodies such as the Real Estate Buyers Agents Association of Australia (REBAA) is a strong indicator of professionalism and adherence to a strict code of conduct.
- Request references: Speak directly with past clients about their experience and the outcomes achieved.
- Understand inspection and due-diligence processes: Ask exactly how they assess a property and what reports they provide before you buy.
- Clarify scope and fees: Ensure you have a written agreement that outlines the services provided, and a transparent fee structure.
These questions help you separate trusted professionals from under-qualified or unethical operators, giving you confidence that your next property purchase will be well researched, well negotiated, and free from costly surprises.
