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Why Choosing an Agent with a Higher Commission Can Mean More in Your Pocket
5 months ago
Why Choosing an Agent with a Higher Commission Can Mean More in Your Pocket

When selling your home, it's natural to want to maximise what you take away. You may feel inclined to select an agent offering a lower commission rate, but sometimes, paying a little more can yield a better result. Here’s why.

Let’s say your property is valued at $500,000. With an agent charging the standard 2.5% commission, your commission cost is $12,500, putting $487,500 in your pocket. Now, suppose another agent offers a lower rate of 1.8%, saving you $3,590 in commission, but there may be reasons they accept a lower rate, such as:

  • Limited time and resources to invest in preparing and marketing your property
  • A need to build their portfolio, often indicating they’re inexperienced or lacking confidence in the market
  • Recently qualified and potentially unfamiliar with the nuances of the local market

Imagine this less experienced agent, due to limited time and expertise, achieves a sale price of $495,000 for your property. With their 1.8% commission rate, you’d pay $8,910 in commission, leaving you with $486,090—$1,410 less than if you’d chosen an experienced agent charging a standard 2.5% commission but who could secure top dollar for your home.

Why Pay More for Commission?

Choosing an agent who has proven experience and success justifies their higher rate. They’ll have the knowledge, confidence, and resources to achieve the best price for your property, meaning you may end up with more in your pocket overall.

In the end, it’s not just about saving on commission—it’s about maximising the sale price and ensuring you have a trusted, skilled agent representing your interests.

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