Parents look to reduce risk while still helping children get onto the housing ladder
Parents are increasingly stepping back from guarantor loans and lump-sum cash contributions, instead opting to pay for buyers’ agents to assist first-home buyers in a competitive housing market, according to industry feedback.
The Real Estate Buyers Agent Association of Australia (REBAA) has reported a consistent increase in first-home buyer clients whose parents are covering professional representation fees rather than injecting capital directly.
“It’s a shift that reflects a broader move toward more strategic forms of intergenerational support in a market where competition, complexity and price pressure remain high,” said REBAA president Melinda Jennison. “Parents are looking for ways to help without taking on the exposure that comes with going guarantor or providing large cash gifts. For many, covering a buyers’ agent’s fee feels like a practical, upfront investment that gives their children expert guidance from the very start.”
Jennison (pictured right) noted that parents were rethinking traditional methods of assistance such as equity guarantees and cash transfers in favour of professional expertise that aims to improve the quality of the purchase decision.
“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.”
The pattern is especially evident among fathers helping daughters, where there is a particular focus on ensuring a trusted adviser is involved in negotiations.
“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,” Jennison said.
“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. They see professional support as one way to protect them from making emotional decisions – especially at auction.”
According to Jennison, families were becoming more aware of the commercial benefits that experienced negotiators can bring to a transaction, including price, contract conditions and broader choice of properties.
“Professional negotiators often achieve stronger outcomes, including lower purchase prices, better contract terms, as well as access to properties that never reach public advertising or listing portals,” she said. “The savings achieved through skilled negotiation can, in many cases, offset the cost of the buyers’ agent fee.”
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