News & Media

By Sarah Lawrence, ABC News – Reframed with commentary from Matthew Hughes, Managing Director, Capital Property Advisory

Recent reporting from Sarah Lawrence at ABC News has highlighted a growing problem in Australia’s property market: underqualified and inexperienced buyer’s agents putting clients at serious financial risk.

A Sydney couple, Jasmin and Jason, recently discovered their $405,000 Wodonga investment property required more than $15,000 in unexpected repairs and could not be rented due to overlooked regulatory requirements. Their buyer’s agent had never physically inspected the property, relying only on a video walk-through and dismissing concerns raised in the building and pest report.

As a result, the couple lost both rental income and confidence in an industry that is supposed to protect buyers from exactly this kind of risk.

Melinda Jennison, President of the Real Estate Buyers Agents Association of Australia (REBAA), has called for tighter regulations, noting that some online “qualifications” cost as little as $200 and fail to teach key legislative responsibilities.

“This is exactly why I’ve been advocating for greater professionalism and oversight in our industry,” says Matthew Hughes, Managing Director of Capital Property Advisory, Board Director of PIPA. “Buying property is one of the biggest financial decisions of your life. Entrusting it to someone with minimal training and no real experience is a recipe for disaster.”

The issue is compounded by interstate licensing loopholes. While NSW and Victoria require two years of mentoring before an agent can operate independently, states like Queensland do not. Thanks to automatic mutual recognition, agents can get licensed in Queensland and then practice across Australia – often without proper supervision.

“This loophole has been a concern for years,” Hughes explains. “We see new operators enter the field, driven by the promise of quick commissions, but without the expertise, relationships, or processes required to safeguard client outcomes. That’s why at CPA, we combine deep experience – more than a decade of transactions across hundreds of millions in property – with rigorous due diligence and industry-best processes.”

The ABC report also quoted Castlemaine buyer’s agent Sue Edmonds, who insisted on inspecting every property for clients, and Bendigo’s Russell Muir, who noted a surge of inexperienced buyer’s agents relying on Google Maps rather than true on-the-ground expertise.

Hughes agrees:

“We have an experience and licensed buyer’s agent physically inspect every property we purchase – not a property manager, certainly not the selling agent. We overlay multiple data sources, and apply our team’s combined experience in acquisitions, finance, and asset management. This isn’t about shortcuts – it’s about protecting and growing our clients’ wealth responsibly.”

Despite the risks posed by inexperienced operators, the report also acknowledged the positive role of qualified, experienced buyer’s agents. One Melbourne buyer credited his agent with saving him $10,000 at auction and easing the stress of the process.

The lesson? Experience counts.

“Not all buyer’s agents are created equal,” Hughes concludes. “Clients should look for those with proper qualifications, memberships in peak industry bodies like PIPA and REBAA, and a proven track record of delivering results. Anything less is gambling with your financial future.”