Buyer's Agent vs Real Estate Agent: Who's Really Working for You?

If you're buying property in the Illawarra, you'll encounter two types of agents: real estate agents (also called selling agents) and buyer's agents.

They both work in property. They both negotiate. They both know the market. But they represent opposite sides of the transaction, and that difference matters.

Real Estate Agents Work for the Seller

The seller hires a real estate agent to market the property and secure the highest possible sale price. Their fee is paid by the seller, usually as a percentage of the sale price.

Their job is to:

• Market the property to attract buyers

• Conduct open homes

• Manage offers and negotiate on behalf of the seller

• Maximise the sale price

When you walk into an open home and speak to the agent, they are not representing you. They are representing the seller. Any information you give them - your budget, your timeline, your interest level - will be used to negotiate against you.

This is not unethical. It's their job. But it's important to understand the relationship clearly.

Buyer's Agents Work for You

You hire a buyer's agent to find and secure a property at the best possible price. Their fee is paid by you, either as a flat fee or a percentage of the purchase price.

Their job is to:

• Search for properties that fit your brief

• Coordinate due diligence and inspections

• Assess property value

• Negotiate on your behalf to minimise the purchase price

• Manage the contract and settlement process

A buyer's agent has a fiduciary duty to act in your best interests. They work for you, not the seller.

The Key Difference: Who They Represent

The fundamental difference is who pays them and who they represent.

The seller pays a real estate agent to get the highest price. You pay a buyer's agent to get the lowest price (or at least the fairest price, given market conditions).

In any negotiation, you want someone on your side. A real estate agent is not on your side. A buyer's agent is.

Can You Negotiate Directly with the Selling Agent?

Yes - and most buyers do.

But you're negotiating with someone whose job is to extract the highest price from you, who has more experience than you in property negotiation, and who has better information about what other buyers are offering.

If you're comfortable with that dynamic and confident in your negotiation skills, you might not need a buyer's agent. If you're not, hiring one levels the playing field.

Do Real Estate Agents and Buyer's Agents Work Together?

Yes. A real estate agent and a buyer's agent negotiate on behalf of their respective clients - the seller and the buyer.

The real estate agent presents the property and manages the seller's expectations. The buyer's agent assesses the property, determines a fair price, and negotiates to secure it at that price.

Both agents understand the other's role. The relationship is professional and transactional, not adversarial.

Which One Do You Need?

If you're selling property, you need a real estate agent.

If you're buying property and want someone representing your interests during the search and negotiation process, you need a buyer's agent.

If you're buying property and confident in your ability to search, assess value, and negotiate on your own, you can deal directly with the selling agent - but remember, they are not working for you.

The Practical Takeaway

Real estate agents work for sellers. Buyer's agents work for buyers. Both are licensed professionals, both know the market, but they represent opposite sides of the transaction.

If you're buying in Wollongong or the Illawarra and want someone on your side, a buyer's agent is the role you're looking for.

If you're weighing whether to hire one, book a call,l and we'll talk through your situation.