REBAA warns consumers about “volume-based” buyers’ agents

The Real Estate Buyers Agents Association of Australia (REBAA) has issued a warning to consumers to be cautious of “volume-based” buyers’ agents who prioritise upfront fees over providing a professional and objective service to their clients.

REBAA President Melinda Jennison noted that there had been a noticeable increase in buyers’ agents whose business models revolve around client volumes, rather than helping a limited number of clients strategically purchase a home or investment property at any one time.

“I recently heard of a sales agent who received a ‘shopping list’ from a volume buyer’s agent, which simply outlined the types of properties they needed to secure to satisfy the dozens of clients they were supposedly currently representing,” Jennison said.

She pointed out that while it is standard practice for buyers to pay a retainer fee, professional and experienced buyers’ agents assess the best properties for their clients’ budgets.

Jennison advised buyers to undertake due diligence before engaging a buyers’ agent, emphasizing that a strong social media presence or cutting-edge marketing does not necessarily indicate that the agent is the right fit or has the buyer’s best interests at heart.

“One of the most important questions to ask your prospective buyer’s agent is how many buyers they currently represent because it shouldn’t be any more than four or five per agent at any one time,” Jennison said.

She also warned consumers to be wary of agents who promise to fulfill their property brief within a fortnight, as it can sometimes take a month or two to find the ideal property for a client.

Jennison advised consumers to look out for pressure tactics, such as missing out on an off-the-market opportunity or a “special” retainer fee unless they sign up immediately.

“Ethical buyers’ agents not only provide a high level of service to a limited number of clients, they also would never resort to cheap marketing tactics to win business,” she said.

Jennison added that the best operators are appropriately licensed in every state they buy in, are members of industry associations such as REBAA, and are more than happy for prospective clients to speak with current or former clients for objective testimonials.