Industry experts warn against ‘free’ buyer’s agent services
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The Real Estate Buyers Agents Association of Australia (REBAA) has cautioned consumers about the rise of advertised “free” buyer’s agent services.
REBAA president Melinda Jennison warned these services often misrepresent their true nature and could undermine the role of genuine buyer’s agents.
Jennison recently received a promotional email for a “free” buyer’s agent service, which she believed was “targeted to mortgage brokers from a development marketer”.
“The use of the term ‘buyer’s agent’ as well as the addition of some mainstream media logos is an attempt to give the business legitimacy, when in fact what they are offering has nothing to do with buying a property and everything to do with selling one instead,” Jennison said.
She emphasised the importance of considering potential vested interests in property transactions.
“Essentially, these ‘free buyers’ agents are selling agents in disguise. They have a huge financial incentive to help you buy that property and that’s not necessarily in the buyer’s best interest,” Jennison explained.
The REBAA president stressed that legitimate buyer’s agents always charge for their services and work exclusively for the purchaser.
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Jennison advised consumers to thoroughly check the credentials of any buyer’s agent.
“Buyers should also ask questions about their experience, time in the industry, research methods, relevant industry body membership status including if they are a REBAA accredited member, as well as how they are paid and by whom,” she said.
Property Investment Professionals of Australia (PIPA) chair Nicola McDougall echoed these concerns.
“Free advice has long been the domain of spruikers,” McDougall said, describing the tactic as “just another example of unscrupulous operators seeking to profit from unsuspecting property buyers”.
Both industry leaders emphasised the importance of working with licensed, independent professionals who prioritise the buyer’s interests.
“Regardless of where consumers find their property investment information, it is vital that they only ever work with professionals who are appropriately licensed, independent, and who are working exclusively for the buyer,” McDougall said.