Buyer's agent red flags: how to spot a bad one

A buyer's agent in Australia must hold the correct licence or registration for the state they operate in. This is not optional, and it is the first thing you should check. An agent who is vague about their credentials is showing you who they are.

What a properly credentialled agent looks like:

• They hold a current real estate licence or agent's representative registration in their state.
• They can give you their licence number on request, without hesitation.
• Their licence covers buyer's agency work, not just selling.
• They carry professional indemnity insurance.

Warning signs to take seriously:

• They cannot or will not give you a licence number.
• They claim a licence is not needed for what they do.
• Their licence is suspended, conditional, or held in a different name.
• They operate under a company name but no individual is clearly licensed.

You can verify a licence yourself. Every state and territory has a fair trading or consumer affairs body with an online licence register. Search the agent's name or licence number before you meet them. It takes two minutes and it rules out the worst operators immediately.

Membership of the Real Estate Buyers Agents Association of Australia at rebaa.com.au is also a useful signal. REBAA members must meet experience and conduct standards, and the association handles complaints. Membership is not a guarantee, but its absence in an agent who claims years of experience is worth a question. A genuine professional treats licensing checks as completely normal. One who bristles or stalls when you ask is telling you something.

A true buyer's agent works only for you. The moment they have a financial interest in what you buy or who you buy from, their advice is compromised. Conflicts of interest are the most damaging red flags because they are often hidden.

Kickbacks and referral fees from the sell side. If an agent steers you toward particular properties, developments or sellers, ask directly whether they receive any payment, commission or benefit from those parties. A buyer's agent should be paid by you and you alone. An agent collecting a fee from both sides is not representing you.

Dual agency. This is when the same agent or agency represents both the buyer and the seller in a transaction. It is a structural conflict. They cannot negotiate hard for a lower price for you while also serving the seller's interest in a higher one. Walk away from any arrangement like this.

Developer relationships. Be cautious with agents who push new builds or house and land packages, especially off the plan. Some are paid large marketing commissions by developers, which means they are selling stock, not finding you the best home. There is nothing wrong with new builds, but you want an agent indifferent to whether you buy new or established.

In-house mortgage broking or conveyancing. Bundled services can be convenient, but they can also be a way to clip the ticket multiple times. Ask whether the agent benefits if you use their preferred broker or solicitor, and feel free to use your own.

The test is simple. Ask: who pays you, and do you receive any money or benefit from anyone other than me? A trustworthy agent answers plainly and in writing. Our guide to off-market property explains how genuine off-market access differs from being funnelled toward a seller's stock.

How an agent charges, and how clearly they explain it, tells you a great deal. A professional fee structure is transparent, agreed in writing, and easy to understand. Anything murky is a warning. For full context, read our breakdown of buyer's agent fees in Australia.

Watch for these fee red flags:

• Refusing to put the fee in writing before you commit.
• A percentage fee with no cap, which rewards the agent for you paying more, not less.
• Large non-refundable engagement fees with no clear deliverable attached.
• Vague language about additional costs that appear later.
• Pressure to pay a deposit on the spot at a first meeting.
• A fee that seems far below market with no explanation, which can hint at hidden kickbacks elsewhere.

The percentage versus fixed fee question deserves a note. A percentage fee creates a mild conflict because the agent earns more if you spend more. It is common and not automatically wrong, but a good agent on a percentage will still negotiate hard and explain the structure. A fixed fee removes that conflict entirely. Either can be fine. What matters is that the structure is disclosed, agreed and capped where relevant.

A clear engagement agreement should state the total fee, what triggers it, what happens if you do not buy, the search scope, the expected timeline, and any termination rights. If an agent will not give you this in writing, that is your answer. Honest operators want everything documented because it protects them as much as you.

Even a licensed, conflict-free agent can simply be bad at the job. The way an agent communicates and runs their process during the early conversations is a strong predictor of how the engagement will go.

Process red flags to watch for:

• They do not take a proper brief. A good agent asks detailed questions about your budget, goals, timeline and non-negotiables. One who skips this is working from a template.
• They will not share comparable sales. Comparable recent sales are the basis of any price recommendation. An agent who asks you to simply trust their number, without showing the data, is hiding weak reasoning.
• They rush you. Pressure to sign quickly, or claims that a property will be gone in hours, is a sales tactic, not advice.
• They overpromise. Anyone guaranteeing a specific return, a bargain, or a result in a fixed timeframe is overselling. Property does not work that way.
• They are slow or hard to reach during the courting stage. If they are unresponsive before you have paid, expect worse afterwards.
• They show you very few options or only properties from one or two selling agents.

Communication red flags are subtler. Notice whether the agent listens or talks over you, whether they explain their reasoning or just assert it, and whether they are honest about a property's flaws. A good agent will talk you out of a poor purchase. A bad one tells you what you want to hear so the deal closes.

A clear, written process should cover how many properties they will assess, how they report progress, how they handle inspections and due diligence, and how negotiation or auction bidding will work. Our guide to negotiating a property purchase sets the standard you should expect from their approach.

Take these questions to any agent you are considering. Their answers, and how comfortably they give them, will tell you most of what you need to know.

1. What is your licence number, and which state authority issued it?
2. Are you a member of REBAA or another professional body?
3. Do you receive any payment, commission or benefit from sellers, developers, brokers or anyone other than me? If yes, what and from whom?
4. Will you put the full fee, what triggers it, and your search scope in writing before I commit?
5. Is your fee fixed or a percentage, and if a percentage, is it capped?
6. What happens to the fee if I decide not to buy, or if I terminate the agreement?
7. How many years have you been buying in my target suburbs specifically?
8. Can you show me three recent purchases you made for clients with similar briefs?
9. How will you show me the comparable sales behind any price you recommend?
10. How many properties will you assess, and how will you report progress to me?
11. Can you give me two recent client references I can contact?

Here is how to read the answers:

Question area	Green flag answer	Red flag answer
Licensing	Gives a number, invites you to verify it	Vague, defensive, or claims none is needed
Conflicts	Paid only by you, discloses everything in writing	Will not say, or admits seller-side payments
Fees	Written, capped, clear on what if you do not buy	Verbal only, uncapped, large non-refundable fee
Track record	Specific recent buys in your area, real references	Generic claims, no references, no examples
Process	Detailed brief, shares comparable sales freely	Skips the brief, asks you to just trust them

An agent who answers these openly is worth shortlisting. One who deflects more than one or two has shown you the door. Pair this checklist with our guide on how to choose a buyer's agent.

If you are reading this after signing with an agent who is now showing red flags, you still have options. Act calmly and in order.

Re-read your engagement agreement first. Look for the termination clause, notice periods, and what fees apply if you exit. Many agreements allow you to end the relationship with written notice, and some have a cooling-off provision. Knowing your position before you act stops you making an emotional decision that costs you.

Raise your concerns in writing. Sometimes the issue is fixable. Put your specific concerns to the agent in an email, ask for a written response, and set out what you expect. A genuine professional will take this seriously. A poor one will get defensive, which confirms your decision.

Stop before you buy. The worst outcome is letting a conflicted or careless agent push you into a purchase. If you do not trust their advice, do not act on it. A property decision made under a bad agent's pressure can cost you far more than any exit fee.

Escalate if needed. If you suspect the agent has breached the law, taken undisclosed kickbacks, or operated without a licence, contact your state fair trading or consumer affairs body. They handle complaints and can investigate. If the agent is a REBAA member, the association also has a complaints process.

Get independent advice. A solicitor or conveyancer can review your agreement and any contract you have been pushed toward. The cost of an hour of advice is small against the risk of a bad purchase.

Then start again properly. When you re-engage, use the vetting checklist above from the first conversation. The right agent makes the whole process easier, whether you are buying in Surry Hills, Brunswick or New Farm. When you are ready to find a vetted, conflict-checked agent, find a buyer's agent through Solva. Every agent on our platform is licence-verified, and you pay nothing to be matched. You can also check current licence and complaint records through your state authority and the consumer guidance at the Australian Bureau of Statistics linked resources and abs.gov.au.