A difference of half a percentage point can look minor on paper. On a $1.5 million sale, it can mean thousands of dollars. But learning how to compare agent commissions is not simply about finding the lowest fee. The better question is whether the agent’s strategy, buyer reach and negotiation ability are likely to deliver a stronger result after every cost is accounted for.
For most sellers, commission is part of a larger decision: who will represent the home, manage the campaign and handle the pressure of negotiation when a serious buyer is ready to act. Compare the full offer, in writing, before you sign an agency agreement.
How to compare agent commissions fairly
Start by asking each shortlisted agent to provide a clear, itemised proposal. It should state the commission structure, whether GST is included, estimated marketing costs, any administration charges and the proposed sale method. If quote is a percentage and another is a fixed fee, convert both to a dollar figure using the same likely sale price.
For example, an agent quoting 2% plus GST on a $1,000,000 sale will charge $22,000 in commission. A 1.7% quote including GST equals $17,000. That comparison is straightforward. It becomes less straightforward when proposal excludes photography, copywriting, signboard costs, premium portal placement or auctioneer fees.
Ask each agent to show the total estimated cost at a conservative sale price, their recommended price and an optimistic result. This helps you see how the fee changes as the sale price moves. It also prevents a low headline commission from distracting from a high marketing budget or additional charges.
Commission levels vary by location, property type, price bracket and the work required. A tightly held prestige home, a rural holding or a property needing a carefully managed off-market campaign may warrant a different approach from a standard suburban sale. There is no single ‘right’ percentage for every property.
Check whether GST is included
This is of the easiest details to miss. Some agents quote a commission rate excluding GST, while others quote an all-inclusive figure. Always ask for both the percentage and dollar amount including GST.
Also confirm whether the marketing estimate includes GST. A proposal can appear competitive until tax is added across commission, advertising, photography, floorplans and signage.
Understand the commission structure
Australian agencies may offer a standard percentage, a fixed fee or a tiered incentive structure. Each can be reasonable when it is transparent and suits your sale plan.
A percentage commission rises with the sale price, which can align the agent’s reward with achieving a higher result. A fixed fee gives certainty about the agent’s remuneration, though you should still assess whether it covers the level of service and campaign work promised.
Tiered commissions, sometimes called incentive commissions, pay a base rate up to an agreed price and a higher rate above it. They can motivate an agent to push beyond a target, but the thresholds need careful scrutiny. A target set well below market expectations may make the higher rate easier to earn without creating much extra value for you.
Ask the agent to model the commission at several possible sale prices. Make sure you understand exactly when a higher rate applies and whether it applies to the amount above the threshold or to the entire sale price.
Look beyond the percentage
A commission quote is not a measure of likely performance. Two agents may charge similar fees while offering very different levels of preparation, buyer management and negotiation. The important comparison is the expected net outcome and the confidence you have in the person delivering it.
Review each agent’s recent sales that are genuinely comparable with your property. Look at location, land size, condition, style, buyer appeal and sale method, rather than relying on their highest-priced result. Recent local sales also show whether the agent understands the buyer pool active in your area right now.
Consider how the agent explains their price opinion. A credible appraisal is supported by relevant evidence and a clear campaign plan, not simply the highest possible number. An inflated estimate can be costly if it leads to an unrealistic guide, weak early enquiry or a price reduction later in the campaign.
You can use recent sales, suburb trends and agent reviews on Leading Agents to build a shortlist before inviting agents into your home. Then use the appraisal meeting to test local knowledge, preparation and communication, not just the fee.
Compare marketing plans line by line
Marketing is usually separate from commission, and it has a direct bearing on buyer competition. Ask for an itemised campaign schedule that says what will be produced, where it will appear and when it will run.
A strong plan may include professional photography, video, floorplans, copywriting, a signboard, digital advertising, database outreach, inspections and prominent listing exposure. Not every home needs every inclusion. The right mix depends on the property and its likely buyers.
What matters is the rationale. If an agent recommends a larger campaign budget, ask what additional audience it is expected to reach and how results will be measured. If another agent proposes a leaner campaign, ask how they will maintain buyer visibility. Marketing should be purposeful, not a bundle of vague extras.
Assess negotiation and communication
The commission is paid for more than placing an advertisement. It covers the work of qualifying buyers, following up after inspections, handling objections, managing offers and negotiating terms as well as price.
Ask who will conduct inspections and negotiate with buyers. In some agencies, the lead agent remains closely involved throughout. In others, much of the work is delegated to a team member. A capable team can be an advantage, provided roles are clear and you know who will call you after each inspection.
Ask for examples of how the agent has handled a difficult negotiation or competing offers. You are listening for a practical process: buyer feedback, regular follow-up, clear vendor advice and firm management of deadlines. General promises to ‘get the best price’ are less useful than a well-explained method.
Questions to ask before signing
Before choosing an agent, make sure the agency agreement answers the commercial details clearly. You should know when commission becomes payable, what happens if you withdraw the property from sale, whether marketing costs are refundable and whether there is an exclusive agency period.
It is also sensible to ask about the proposed authority price, the recommended reserve strategy for auction, expected inspection schedule and how offers will be presented. If you are selling an investment property with tenants, ask how access, notice requirements and inspection times will be managed.
Do not feel pressured to accept a fee proposal at the appraisal. There is room to negotiate commission and marketing costs, particularly where the property is high value or the agent is competing for the listing. Still, negotiate with context. Cutting a fee may be worthwhile, but not if it reduces the agent’s commitment, campaign quality or access to the right buyers.
Put any agreed changes in writing before signing. Verbal assurances about advertising upgrades, extra open homes or a reduced commission are difficult to rely on later.
Choose value, not the cheapest quote
A lower commission can produce a better outcome when the agent has the right local record, a convincing campaign and the capacity to manage your sale properly. Equally, a higher commission needs to be earned through demonstrable experience, better buyer reach or a strategy suited to a complex property.
A useful final test is to compare each proposal on the same page: estimated total cost, comparable results, marketing inclusions, sale strategy, communication plan and the person responsible for negotiation. The best choice is often the agent who gives you clear evidence, realistic advice and a process you can trust when the decisions become time-sensitive.
Selling well is rarely about choosing the smallest number in a quote. It is about appointing an agent who can create genuine buyer competition while keeping costs, expectations and communication clear from day>
