Why a Real Estate Agent Will Always Act in the Seller's Best Interest

When buying or selling a property, many people assume that real estate agents are neutral parties—working to strike a fair deal between buyers and sellers. However, the reality is that real estate agents are legally and financially obligated to act in the best interest of the seller, not the buyer. Understanding why this happens is essential for buyers who want to navigate negotiations effectively and for sellers who want to leverage their agent’s expertise to secure the best possible deal.

Understanding the Role of a Selling Agent

Real estate agents typically fall into two categories:

1. Selling agents – Represent homeowners looking to sell their properties.

2. Buyer’s agents – Work exclusively for buyers, helping them find, evaluate, and negotiate deals.

Most buyers deal with selling agents rather than hiring a buyer’s agent, which means the agent they’re speaking to is contractually bound to represent the seller’s interests. A selling agent’s goal is to secure the highest possible sale price and most favorable conditions for their client—the property owner.

Why Selling Agents Favor the Seller

1. Legal Obligation & Fiduciary Duty

When a seller hires an agent, they sign a contract known as a listing agreement. This agreement legally binds the agent to act in the seller’s best interests, meaning they must work to maximize the property’s sale price, create a competitive environment among buyers, and ensure favorable contract terms for the seller.

Australian real estate law recognizes this fiduciary relationship, requiring selling agents to provide honest and fair advice to their clients, protect confidential information, and avoid conflicts of interest that may harm the seller. Buyers should remember that selling agents are legally required to prioritize the seller’s needs before considering the buyer’s position in negotiations.

2. Commission-Based Earnings

Most selling agents earn their income through a commission on the final sale price, usually ranging from 2% to 3% of the sale price. This creates a clear financial incentive for agents to push for a higher selling price, as their commission directly correlates to the amount the property sells for.

For example, on a $1,000,000 home, a 2.5% commission would amount to $25,000 for the agent. If they secure a sale at $1,050,000, their earnings increase to $26,250—giving them strong motivation to negotiate aggressively and persuade buyers to stretch their budgets.

3. Marketing & Competition Strategies

Selling agents use strategic marketing tactics to generate interest in a property. Techniques such as auction campaigns, staged open houses, and multiple-offer situations are designed to create urgency among buyers, driving up the final sale price.

Even when an agent knows a seller may accept a lower offer, they won’t immediately disclose this to buyers. Instead, they use strategies such as price anchoring—advertising the home at a slightly inflated price to encourage higher offers—or deliberately delaying acceptance of initial offers to build momentum.

4. Negotiation Tactics That Favor the Seller

Selling agents are trained to negotiate in a way that maximizes the seller’s benefit. Some common tactics include:

• Limited disclosure: The agent won’t share negative aspects of the home unless legally required.

• Encouraging bidding wars: If multiple buyers are interested, the agent will orchestrate a competitive environment.

• Overpricing to test buyer limits: Agents often start negotiations at a higher-than-market price to gauge what buyers are willing to pay.

Buyers should always approach negotiations with the understanding that the agent’s goal is not to help them get a bargain—it’s to get the seller top dollar.

How Buyers Can Protect Themselves

1. Consider Hiring a Buyer’s Agent

A buyer’s agent works solely for the buyer, ensuring they get the best possible deal while navigating negotiations with the seller’s agent. Buyer’s agents provide market insights, access to off-market properties, and expert negotiation strategies, giving buyers a strong advantage when dealing with selling agents.

2. Do Independent Market Research

Rather than relying solely on a selling agent’s advice, buyers should conduct their own research on comparable sales in the area. Websites such as CoreLogic, Domain, and Realestate.com.au provide data on recent transactions, helping buyers determine whether an asking price is fair or inflated.

3. Understand Selling Agent Strategies

Recognizing that selling agents are not working for the buyer allows buyers to approach negotiations more strategically. Being aware of common tactics—such as price anchoring and urgency creation—can help buyers negotiate confidently and avoid emotional decision-making.

4. Stay Firm on Budget Limits

Selling agents will often encourage buyers to push beyond their budget by emphasizing competition or highlighting upgrades. Sticking to a pre-approved budget and not getting caught in bidding wars is crucial for securing a financially responsible purchase.

Final Thoughts: Why Buyers Must Approach Selling Agents Carefully

While selling agents may seem helpful, their sole priority is to act in the seller’s best interest. Their legal obligations, financial incentives, and negotiation tactics are all designed to maximize the sale price rather than assist the buyer in securing a bargain.

For buyers who want fair representation, working with a buyer’s agent or conducting independent research is crucial. Understanding how selling agents operate allows buyers to navigate Brisbane’s competitive market with confidence, strategy, and financial discipline.

Would you like expert insights on buyer’s agents who can help negotiate the best deal for you? De Heeren Property Buyers Advocates offers a complimentary 45-minute consultation, ensuring buyers receive strategic guidance in securing their ideal property. Book your free consultation today!

Contact us now