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Parents swap cash for expertise to help their children buy homes
According to the Real Estate Buyers Agent Association of Australia (REBAA), there has been a steady rise in parents paying for their children’s buyer’s agent fee rather than handing over cash or serving as guarantors on loans.
REBAA president Melinda Jennison said parents’ new strategy marked a shift in how previous generations helped their offspring enter the property market and buy their first property.
“Instead of stepping in with cash or loan guarantees, parents are choosing to invest in expertise that helps their children buy well from day one,” she said.
“It’s a more sustainable, lower-risk way to support first home buyers in challenging markets around the nation.”
Jennison said that as parents grew more aware of the challenges in the current market, investing in buyer’s agents and the education they provide made sense.
“For many, covering a buyer’s agent’s fee feels like a practical, upfront investment that gives their children expert guidance from the very start.”
She said that first home buyers who engaged a buyer’s agent often secured better deals, benefiting from expert negotiation, more favourable contract terms, and access to off-market properties.
“The savings achieved through skilled negotiation can, in many cases, offset the cost of the buyer’s agent fee.”
“They see professional support as one way to protect them from making emotional decisions – especially at auction.”
According to Jennison, fathers have been increasingly engaging buyer’s agent services to support their daughters buy their first property.
“They want their daughters to have someone in their corner – someone who can negotiate hard, spot red flags, and ensure they’re not overpaying, especially in hot markets,” she said.
Additionally, she said that parents were attracted by buyer’s agent networks and their ability to access off-market and pre-market opportunities.
She said that as parents were more and more concerned about their children falling behind seasoned home buyers and investors, buyer’s agent networks had become an attractive option.
“With stock levels tight and with the First Home Guarantee supercharging demand, buyer’s agents are unlocking opportunities that first home buyers simply wouldn’t have access to on their own,” she said.
As the market continues to tighten, more parents will turn to buyer’s agents for guidance and education.
“Parents also want their children to avoid costly mistakes, such as rushing into unsuitable or poor-performing properties because of the demand and supply imbalance in many markets,” she concluded.
