Aaron Bell
Athena Cocoves
Australia’s property market can be complex to navigate alone. Having the right person who helps in buying or selling a home can make all the difference. Understanding the roles of various property experts ensures you’ll have support at every step of the journey.
Real estate agents
Real estate agents work as intermediaries between buyers and sellers in the property market. They provide guidance through the process of property transactions.
Cost: Real estate agents usually charge a commission of around 2% – 2.5% of the property’s sale price. For example, if a house sells for $500,000, the agent’s commission would be approximately $10,000 – $12,500.
These professionals typically represent property owners (sellers or landlords) by listing residential and commercial properties for sale or rent. They handle marketing, mediating negotiations, and ensuring compliance with legal requirements.
Qualifications vary by state, but generally, real estate agents must be registered with the Office of Fair Trading or similar regulatory body. They must also have a certificate from an authorised organisation:
| State or Territory | Regulatory Body | License(s) needed |
| NSW | NSW Fair Trading | Certificate IV in Real Estate Practice (CPP41419) |
| VIC | Consumer Affairs Victoria | Certificate IV in Real Estate Practice (CPP41419) |
| QLD | Queensland Office of Fair Trading | Certificate IV in Real Estate Practice (CPP41419) Diploma of Property (CPP51119) |
| SA | Consumer and Business Services (CBS) | Certificate IV in Real Estate Practice (CPP41419) Diploma of Property (CPP51119) |
| WA | Department of Mines, Industry Regulation and Safety (DMIRS) | Diploma of Property Services (Agency Management) (CPP51119) |
| TAS | Property Agents Board Tasmania | Certificate IV in Real Estate Practice (CPP41419) Diploma of Property Services (CPP51119) |
| ACT | Access Canberra | Diploma of Property Services (CPP51119) |
| NT | Northern Territory Consumer Affairs | Certificate IV in Real Estate Practice (CPP41419) Diploma of Property Services (CPP51119) |
Many real estate certifications are attainable within a shorter time frame than other qualifications in Australia, so you may want to consider their experience when choosing a real estate agent to work for you.
Buyer’s agents
Buyer’s agents require the same licences as real estate agents but exclusively represent the interests of the buyer in a property transaction.
Cost: A buyer’s agent typically charges between 1.5% – 3.5% of the property’s purchase price. However, some may charge a fixed fee or an upfront retainer instead.
A buyer’s agent will focus on finding, evaluating, and negotiating the purchase of properties that meet the buyer’s specific needs, including off-market properties. This expertise is particularly useful for buyers with specific needs or those relocating to a new city or state who need local expertise.
Property investors may also benefit from buyer’s agents who can provide market research and expertise to focus on capital growth or rental yield.
Property managers
A property manager overseas the day-to-day and ongoing responsibilities of managing rental properties, including tenant communication, lease management, and property maintenance.
Cost: Property managers typically charge between 5-12% of the rental income, with fees varying by location.
Other responsibilities of a property manager include:
- Advertising the property
- Holding inspections for prospective tenants to view the property
- Finding and screening new tenants
- Creating and signing off on paperwork like lease agreements
- Handling ongoing paperwork
- Collecting the bond and rent
- Regular inspecting the property
- Communicating with tenants
- Organising repairs and maintenance
- Dealing with lease breaks, evictions, and tenant turnover.
You may want to consider hiring a property manager if you own an investment property and prefer not to handle tenant relations and property upkeep yourself. However, as the owner, you can also choose to manage the property yourself if you have the time and expertise.
Property valuers
Property valuers provide up-to-date and precise valuations, which can be useful for sellers, buyers seeking independent assessments, or lenders determining the loan-to-value ratio (LVR) on a home.
Cost: Valuation costs vary based on the type of report. Free online valuations are available, while comprehensive reports from independent valuers may cost a few hundred dollars, or more.
A property valuation is helpful when buying, as it ensures you’re aware of the property’s true market value, potentially aiding in negotiations.
For example, you may be looking to buy a property, and one you like the look of is advertised at $400,000. However, the seller’s listed price may not always reflect the true market value. Paying for an independent valuation can help you in making a fair offer, give you a negotiation tool, or avoid overpaying.
Most property valuers require a relevant degree as well as an accreditation with a relevant professional body such as The Australian Property Institute (API).
Mortgage brokers and lenders
As a buyer, you’ll probably need a home loan, which can come directly from a mortgage lender or through the help of a broker.
Cost: Brokers typically earn a commission from the lender, so there’s usually no direct cost to the buyer. This is important to know, as they should provide transparency on existing relationships with certain banks to ensure they aren’t pushing you towards a certain home loan for commission from that lender.
Mortgage brokers have a comprehensive understanding of lending criteria and help their clients through the process of finding suitable mortgages by focusing on:
- mortgages with low interest rates
- features that benefit you
- low fees
- advise you on ways to improve your borrowing power
- help you apply for a home loan.
When you find a mortgage broker, make sure they are qualified and have a Certificate IV in Finance and Mortgage Broking (FNS40821) and be accredited with one of Australia’s industry associations:
- Mortgage & Finance Association of Australia (MFAA)
- Finance Brokers Association of Australia (FBAA)
Conveyancers and solicitors
Conveyancers manage the legal aspects of transferring property ownership, including document preparation and compliance with state laws. Solicitors and property lawyers can also perform conveyancing and provide additional legal services if needed.
Cost: Conveyancing fees often range from $500 to thousands of dollars, depending on the complexity of the transaction and the property’s value. This cost is typically lower than what’s charged by a solicitor.
Property lawyers are professionals with a Bachelor’s degree in law, often specialising in property. Conveyancers must have a recognised diploma and licence from the relevant body in each state or territory.
Other property professionals to have on your team
Other professionals you may encounter or benefit from:
- Surveyors: Experts in construction costs, contracts, and zoning compliance.
- Accountants: Provide tax advice on property-related earnings, such as capital gains tax, rental income, and deductions.
- Builders and contractors: Can serve as building inspectors or be relevant for renovations, construction, or buying off-the-plan.
- Architect: Plan, design, and execute property renovations or new construction.
- Strata managers: Help with understanding strata laws within shared buildings.
- Pest inspectors: Check properties for signs of infestations like termites or rodents before purchase.
About the Author
DIVE EVEN DEEPER
How To Choose A Mortgage Lender
Compare rates, fees, repayment options and customer reviews across several types of lenders, to be sure your mortgage lender meets your needs.
Alan Hartstein
What Are Private Home Loan Lenders?
Private home loan lenders may be able to help you buy a house if you have a unique financial situation and want to apply for a mortgage.
How To Buy A House In Australia: 12 Steps To Purchasing Property
The main steps to buying a house or property in Australia include getting your finances in order, seeing how much you can borrow, and choosing the right mortgage lender.
10 Questions To Ask Your Mortgage Lender Before Signing
You finally found your dream first home, but are you ready to sign your mortgage contract? There are critical questions to ask your mortgage lender first to make sure it’s the right time to sign.