Investors at risk as unqualified buyer’s agents rise

REBAA president, Melinda Jennison, said the newer buyer’s agents have been falling behind industry standards, following non-accredited online courses.

“We embrace newcomers eager to enter the dynamic world of buyer’s agents, but the rise of inexperienced entrants is concerning,” Jennison said.

“Many are being drawn in by online courses that don’t prepare them for real-world challenges, leaving them – and their clients – at significant risk.”

Jennison said existing training programs, such as licensing courses, fall short in preparing buyer’s agents for key responsibilities, complex negotiations, due diligence, and strategic deal structuring.

“The current licensing framework leaves trainee buyer’s agents ill-equipped to provide professional services, creating a troubling gap in their education.

“Many new buyer’s agents enter the industry with only a superficial understanding of its complexities, putting themselves, and the clients they are representing, at risk of making uneducated and costly decisions.”

Industry veteran and Buyer’s Agent Mentoring Program founder, Veronica Morgan, said that new entrants’ lack of legal and practical knowledge had left clients vulnerable to serious financial risks.

“Without adequate training, many new buyer’s agents are flying blind,” Morgan said.

“Some of the stories that I have heard from property buyers are horrendous.”

She said current licensing courses focus primarily on sales agents, failing to provide the specialised training buyer’s agents need in areas like property assessment, negotiation, and due diligence.

Although on-the-job training can help close the gap, Morgan said that many new agents face difficulties finding opportunities for practical, hands-on experience.

“Our industry is dominated by solo agents and microbusinesses with limited resources, making it difficult for newcomers to learn from experienced professionals,” Morgan said.

As the buyer’s agent industry grows, REBAA urges regulators to enforce stricter education and licensing standards, stating that the current generic real estate licensing is inadequate for their specialised field.

“Buyer’s agents handle what is often the most significant financial decision in a person’s life,” Jennison said.

“The fact that someone can get licensed in just a few days – without specialised buyer’s agent training – is simply unacceptable.”

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