It’s one of the most common points of confusion for first-time property investors in Australia: what’s the actual difference between a buyers agent and a real estate agent?
The answer matters enormously — because they have fundamentally opposing interests when you’re buying a property.
Who Does Each Agent Represent?
This is the core distinction:
- A real estate agent (also called a selling agent or vendor’s agent) is engaged by and legally obligated to the seller. Their job is to sell the property for the highest possible price.
- A buyers agent is engaged by and legally obligated to the buyer. Their job is to purchase the right property at the lowest possible price.
When you walk into an open home and the real estate agent is friendly, helpful, and enthusiastic — remember they are not on your side. They are paid a commission by the seller, typically 1.5–3% of the sale price, which means every extra dollar you pay goes into their pocket too.
Licensing and Regulation
Both buyers agents and real estate agents must hold a current real estate licence in Australia. In most states, the licence is the same — it’s the engagement structure that differs, not the licence category.
In NSW, agents are regulated by NSW Fair Trading. In Victoria, by Consumer Affairs Victoria. Each state has equivalent bodies overseeing licensing and conduct.
How Each Agent Gets Paid
Real estate agents are paid by the seller — typically a commission of 1.5% to 3% of the sale price. This comes out of the proceeds of sale, meaning the buyer pays nothing directly to the selling agent.
Buyers agents are paid by the buyer — either a fixed fee ($8,000–$20,000) or a percentage of the purchase price (1–3%). Some buyers agents charge a combination of both.
The Dual Agent Problem
One thing to be aware of: some agents act as a “dual agent” — representing both the buyer and seller in the same transaction. This practice is legal in some Australian states but creates an obvious conflict of interest. I’d strongly recommend avoiding any situation where your agent also represents the vendor.
Do You Need Both?
You will always interact with a real estate agent when buying property — they’re the listing agent for the property you’re buying. Whether you also engage a buyers agent is your choice. Read my full breakdown of what a buyers agent does to help make that decision.
Also see: How to choose a buyers agent in Australia — if you decide you want one, here’s how to pick the right one.
Sources: NSW Fair Trading | Reserve Bank of Australia | Domain Research