When it comes to purchasing an investment property in Australia, one of the most important decisions you’ll make is selecting the right investment property buyers agent. A buyer’s agent can guide you through the process, helping you choose the best property and navigate the complexities of the real estate market. However, the decision is not always straightforward, especially when it comes to the “chicken and egg” problem—do you pick a location first and then find an agent, or do you choose an agent who can recommend a location? Both strategies have their benefits and drawbacks, and it’s crucial to approach this decision with care to maximize your chances of success.

Key takeaways: 

• Location vs. Agent: Weigh the Pros and Cons – Choosing the location first can limit your options if you don’t have enough market knowledge. Letting a buyer’s agent choose the location can be beneficial if you find a knowledgeable agent, but data-driven approaches can sometimes be misleading. It’s important to strike a balance between these two approaches.
• Minimise Risk, Maximise Returns – Don’t chase hotspots. Instead, focus on safer, more established markets. Your first investment property is crucial, so make sure it’s a high-quality asset that offers long-term growth potential.
• Choose a Specialized, Experienced Buyer’s Agent – The right buyer’s agent will have deep local expertise, years of experience, and a commitment to due diligence. Always verify their credentials and ensure they prioritize your best interests over quick sales or portfolio plans.

When considering an investment property, many investors wonder whether they should first choose a location or start by selecting a buyer’s agent. The reality is that both approaches have limitations.

If you decide to pick the location before engaging a buyer’s agent, you may find yourself questioning how you arrived at that decision. What factors are you basing your location choice on? Are you relying on general trends, online research, or word of mouth? Once you narrow down a location, the natural step is to find a local buyer’s agent. However, this can create an echo chamber where the buyer’s agent reinforces your choice, not because it’s necessarily the best option, but because they specialise in that area.

This approach assumes you already have enough knowledge about which areas are promising for investment. If you don’t, you risk making a decision that might not serve your long-term goals.

On the other hand, choosing a buyer’s agent first gives you the advantage of professional guidance. A good buyer’s agent will use data and expertise to help you select a location. But even here, there are risks. The property investment space is filled with misinformation, and data-driven decisions aren’t always reliable. Many methodologies that rely purely on data lack supportive evidence for long term expectations and can lead to flawed recommendations.

A competent buyer’s agent will be able to combine data with local knowledge, experience, and a deep understanding of market trends. However, finding such an agent can be difficult, especially if you don’t know what to look for.

When recommending buyer’s agents, I always start by asking investors a critical question: Is this the least risky place for you to invest? This question is fundamental because not all locations are equally viable, especially when an investor’s budget doesn’t extend to more established markets with proven growth records. Often, investors are drawn to “hotspots” in pursuit of quick capital gains. However, chasing hotspots can be a risky strategy, especially in a country as large and diverse as Australia.

Sometimes, there may be no qualified buyer’s agents who specialize in the area you’re considering, or if there are, I might not feel confident recommending them. This is particularly true in regional areas, where buyer’s agents may lack the depth of local knowledge necessary for making sound investment decisions. In some cases, recent arrivals to these areas decide to become buyer’s agents, but they may lack the expertise to provide sound advice. In these situations, educating yourself about the buying process can be more beneficial than relying on poorly qualified agents. For example, the Your First Home Buyer Guide course at Homebuyer Academy offers comprehensive information for both first-time buyers and seasoned investors looking to buy with confidence.

On the flip side, I also encounter investors who are agnostic to location, which can be just as problematic. These investors run the risk of connecting with a buyer’s agent who lacks specialized knowledge and experience. Working with a generalist buyer’s agent who has no deep expertise in any particular market can leave you with a subpar investment.

For those investors, a strategic session to pinpoint the best location based on personal circumstances and financial goals may be more effective than simply relying on a buyer’s agent’s generic advice. Unfortunately, many investment advisors push portfolio plans that include mortgages, accounting services, and buyer’s agency support—all of which may not serve the investor’s best interests. These plans are often designed to sell you multiple services rather than help you choose the best possible property.

Statistics show that 70% of Australian investors never move past their first property purchase. If you’re going to make just one investment, it’s crucial that it be a high-quality asset. A well-chosen property in a safe, established location will far outperform a riskier purchase in an unproven market.

Selecting a buyer’s agent is a major step, and not all buyer’s agents are created equal. Whether you’re set on a location or still open to options, the following criteria can help ensure you make the best choice:

1. Local Expertise – Your buyer’s agent should specialize in the area you’re considering. They must have a deep understanding of the local market and its unique characteristics.
2. Experience – Look for agents with at least 10 years of experience, or those who are mentored by someone with extensive experience.
3. Due Diligence – Your buyer’s agent must perform thorough due diligence on every property, assessing risks and potential rewards before making a recommendation.
4. Negotiation Skills – A skilled buyer’s agent knows how to negotiate with sales agents, ensuring that you get the best possible deal.
5. Professional Standards – Verify that the buyer’s agent holds the appropriate licenses for their state or territory and has professional indemnity insurance.
6. Client-Centric Approach – A good buyer’s agent prioritizes your best interests, even if that means advising you to walk away from a deal.
7. REBAA or PIPA Membership – Membership in the Real Estate Buyers Agents Association of Australia (REBAA) or Property Investment Professionals of Australia (PIPA) isn’t a guarantee of quality, but it shows a commitment to maintaining professional standards.

The right buyer’s agent can be your greatest asset when investing in property. By carefully selecting an agent who meets these criteria, you can significantly improve your chances of making a successful investment that will grow in value over time.