Do Buyer’s Agents Really Benefit from Higher Property Prices?

If you, like most others looking to move to Portugal, have joined various Facebook Groups, you may have come across a post recently circulating suggesting that buyer’s agents don’t truly act in your best interests.

It’s a bold claim. And understandably, one that could raise concerns if you’re thinking about purchasing property in Portugal.

So, let’s talk about it.

Understanding How the System Works

In Portugal, the real estate structure is quite straightforward. The seller (vendor) appoints an estate agent (or several agencies) and agrees to pay a commission upon a successful sale to the agent who ultimately secures the sale. Now it's an industry standard that if you have a property listing and another agent has a buyer interested in the property, the agent with the listing will usually make an agreement with the agency who has the interested buyer, to split the commission from the vendor upon property sale (if it all goes ahead). It's standard that it would be a 50/50 split between the two agencies (but this can vary).

We as Buyer's Agents fall within this model. We earn our commission from splitting the commission the vendor pays. Some Buyer's Agents do choose to also charge a fee to their clients, but we have chosen not to do this. There are no hidden costs for our service—our role is built into the existing system.

So yes, technically speaking, buyer’s agents are paid via commission from the sale price. But the idea that this automatically means we are motivated to keep prices high? That’s where things become a little too simplistic.

A One-Size-Fits-All Claim Doesn’t Reflect Reality

Like in any industry, there are different approaches and different standards.

It would be unrealistic to suggest that every individual or company operates in exactly the same way. However, it’s equally misleading to suggest that all buyer’s agents are driven to push prices higher for their own gain.

At The Buyer’s Agent Algarve, that simply isn’t how we work, and in truth, it’s not how most reputable professionals operate here in the Algarve. The roles are simple: The vendors agent is instructed by their client (the vendor) to get the highest price for the property, and we agree with our clients to get the best terms possible (which include the price!).

The Reality of Representing Buyers

When you find a property you love, you already know the asking price. Our role begins there. Not by encouraging you to pay more, but by helping you secure the property on the best possible terms (this will include price, timeline, conditions of sale and the like).

We negotiate firmly and strategically on your behalf.

In fact, we have never secured a property for a client at the full asking price. Every purchase we’ve been involved in has been negotiated down (often significantly).

Because here’s the reality: short-term gain is not worth long-term damage.

If we were to prioritise a slightly higher commission over achieving the best outcome for our client, we would risk:

• Damaging our reputation

• Losing future referrals

• Undermining trust

• And quite simply, not being able to look our clients in the eye afterwards

Many of our clients become our neighbours. This isn’t a one-off transaction for us. It’s a long-term relationship.

Trust, Transparency, and Long-Term Thinking

Buying property (especially in a foreign country) can feel daunting. That’s exactly why buyer’s agents exist: to guide, protect, and support you through the process.

We work solely for the buyer. We don’t list properties, and we don’t have stock to “sell”.

Our focus is entirely on helping you make a well-informed decision and negotiating the right deal.

Could someone choose to operate differently? Perhaps.

But it’s important not to assume that one perspective represents the entire industry.

So, Do Buyer’s Agents Save You Money?

In our experience (and that of our clients to date) yes, absolutely.

Not just in terms of negotiated purchase prices, but also by helping you avoid costly mistakes, identifying fair market value, and ensuring you don’t overpay in the first place.

And all of this comes at no direct cost to you as the buyer. Whilst it can be advantageous to seek additional reports on 'real estate risk' (as was the suggested reason for the post in question), we have saw first-hand that paying for trusted lawyer and surveyor, would give you the same (if not better) outcome.

Final Thoughts

It’s always wise to ask questions, do your research, and understand how incentives work in any property market.

But it’s equally important to look beyond headlines and generalisations.

A good buyer’s agent should offer clarity, honesty, and genuine alignment with your goals—not just in words, but in actions.

If you’re considering buying in the Algarve and want to understand how we work, we’re always happy to have a no-pressure conversation.