They bought it through a buyer’s agent who clearly didn’t understand our local market. The property had extensive water damage, through ceilings and walls, costing an estimated $100,000 in repairs. On top of that, they’d overpaid by at least $100,000.
It was a tough conversation. The buyer didn’t have enough funds to fix the issues. And without those repairs, they couldn’t move forward with renting the property. It’s a harsh lesson that’s becoming far too common.
Here’s what this investor got wrong—mistakes we see often:
- No proper research on the buyer’s agent.
They didn’t check the agent’s knowledge of the local market. A quick search of comparable sales would have flagged the overpayment.
- Ignored the building and pest report.
The report highlighted serious issues, but the buyer didn’t act on it.
- No independent inspection.
No one viewed the property on their behalf to confirm its condition or take photos.
- No clause to inspect before settlement.
If they had visited the property before completion, they would’ve seen the damage themselves.
- No funds for maintenance.
Being a landlord means having cash on hand for emergencies—this wasn’t planned for.
This isn’t just a local issue. Industry experts and sales agents across the country are raising alarms about the rise of inexperienced buyer’s agents entering the market.
The Real Estate Buyers Agents Association of Australia (REBAA) has publicly warned of growing risks to consumer protection. According to REBAA president Melinda Jennison, the industry’s low barriers to entry, lack of specialist education, and inconsistent qualification requirements between states are exposing buyers to costly mistakes.
“This includes a lack of regulatory oversight and the prevalence of inexperienced operators who may have completed their real estate licence but know very little about buying property,” Jennison said.
Jennison also pointed to the problem of mutual license recognition, which lets agents get licensed in one state with low requirements and then operate in others without any local knowledge.
“Imagine hiring someone for a $1 million purchase only to discover they lack knowledge of local laws or market dynamics? This is happening every day, and buyers are unaware,” she said.
She described the loophole as a “ticking time bomb” for consumer trust and financial safety.
Sales agents are also speaking out.
Brisbane’s Stone Real Estate Aspley principal Tristan Rowland said many buyers can’t tell the difference between qualified and unqualified agents.
“How do you know what a buyer’s agent has inspected or whom they’ve contacted? If they’re not presenting properties regularly, they’re not doing their job.”
John Cunningham, managing director of Cunninghams Real Estate Sydney, shared a case where an inexperienced agency disrupted multiple sales by hovering around open homes, giving poor advice, and then folding within 18 months, leaving buyers out of pocket on upfront fees.
“They simply did not know what to do and could never get to the point of getting any sales done.”
Jennison added that these inexperienced agents are also frustrating sellers and complicating transactions.
Last year, we saw a surge of buyer’s agents entering our market, mostly servicing investors from interstate. It was the worst we’ve experienced.
Many were contacting property managers like us just to ask for rental estimates—purely to compare numbers. But they weren’t thinking long term. They weren’t asking the right questions, building relationships, or looking at value beyond fees.
In most cases, their clients were being advised based on saving 1–2% in management fees, not on securing a solid investment.
We’ve made a clear decision:
If a buyer’s agent does not have a working relationship with us, we won’t take on the property. Too many agents are focused only on cutting costs, not on delivering actual service, advice, or transparency to their clients.
What Needs to Change
REBAA is calling for buyer’s agents to:
- Be fully licensed through standard state processes
- Carry Professional Indemnity Insurance (mandatory in NSW)
- Join their peak body to stay accountable and informed
- Understand local markets before operating interstate
As the industry continues to grow, consumer protection, regulation, and professionalism must grow with it.
If you’re planning to buy through a buyer’s agent:
- Check their licence, credentials, and experience
- Make sure they know the local market they are advising you to purchase in
- Read all reports carefully—especially building and pest
- Get independent inspections and photos
- Include a clause for a pre-settlement inspection
- Always budget for unexpected costs
Don’t take shortcuts. Ask questions. Do your homework. A little effort up front can save you hundreds of thousands later.
