Commission Confidence Video Series
Welcome! You can work through the below videos in order or come back to individual modules whenever you need to.
This series is designed to help you better understand how agent commissions, fees and marketing costs work before making any decisions.
This lesson explains how real estate agent commission is usually structured in Australia, when it is paid, and why the quoted percentage is only one part of the story.
Key takeaways
π Agents are usually paid a commission based on the final sale price of your property.
π In most cases, commission is only paid if the property sells and settles.
π The commission is paid to the agency, not directly to the individual agent.
π Commission rates are not fixed, which means different agents may charge different amounts or structure their fees differently.
π In some cases, the commission may be shared with others, such as franchise groups, referral sources or vendor advocates.
What most sellers get wrong
Many sellers focus only on asking what percentage an agent charges, without understanding how that fee actually works or what sits behind it.
Questions to Ask
π¬ How exactly is your commission calculated?
π¬ When does the commission become payable?
π¬ Apart from your agency, is any part of the commission shared with another party?
π¬ Are there any circumstances where other fees may also apply?
π¬ What happens if the sale falls through – is commission still payable?
This lesson looks at why comparing agents on commission percentage alone can lead sellers in the wrong direction.
Key takeaways
π A lower commission rate does not always mean better value.
π A higher commission can still work in your favour if the agent achieves a stronger result.
π The real question is not just what the agent charges, but what they are likely to deliver.
π Some agents discount their fee to win the listing, but that does not necessarily mean they are the best choice.
π Focusing too heavily on commission can distract sellers from more important factors such as strategy, skill, negotiation ability and buyer management.
What most sellers get wrong
It is easy to assume the cheapest agent is the smartest choice, but a weaker result can end up costing far more than any saving in commission.
Questions to Ask
π¬ Can you explain exactly how your commission structure works?
π¬ Is your commission a flat percentage, or is there an incentive component?
π¬ If there is a tiered or performance-based structure, how is it calculated?
π¬ At what sale price does the higher rate apply?
π¬ Is GST included in the quoted commission, or added on top?
π¬ Are there any other fees or charges connected to this structure that I should know about?
In this lesson, youβll learn what is typically included in a marketing campaign, how marketing costs are usually paid, and how to assess whether a proposed campaign makes sense for your property.
Key takeaways
π Marketing costs are usually separate from the agentβs commission
π The purpose of marketing is to create visibility, buyer interest, and competition
π Most campaigns include portal advertising, photography, a floorplan, and a signboard
π Online portal placement is often the largest and most important marketing cost
π Marketing budgets can vary significantly depending on the property and strategy
π These costs are often payable whether or not the property sells
π What matters most is not just the cost, but what the campaign is designed to achieve
What most sellers get wrong
Many sellers focus on whether the marketing budget feels high or low, without first understanding what is actually included and whether it suits the property.
A higher marketing budget is not automatically excessive, and a lower one is not automatically better. The real question is whether the campaign is well designed, targeted to the right buyers, and supported by quality advertising materials.
Once you appoint the agent and the campaign begins, it becomes much harder to change poor-quality marketing. That is why it is important to look closely at how each agent presents their listings before you commit.
Questions to Ask
π¬ Can you walk me through exactly what is included in this marketing budget?
π¬ Which parts of this campaign do you consider essential, and which are optional?β
π¬ Where are most buyers for a property like mine likely to come from?
π¬ How will this particular campaign help generate interest and competition for my property?
π¬ Can I see examples of how your current listings are being presented online?
This lesson explains how to approach commission conversations with agents more confidently, what to listen for in their response, and how to ask questions without feeling uncomfortable or confrontational.
Key takeaways
π It is completely reasonable to ask an agent to explain and justify their commission.
π The goal is not just to ask for a discount, but to understand the structure, value and motivation behind the fee.
π How an agent responds to commission questions can tell you a lot about their communication style and professionalism.
π A confident commission conversation should be clear, respectful and focused on understanding, not pressure.
π Sellers often get a better outcome when they ask thoughtful questions rather than focusing only on βwhatβs your best rate?β
What most sellers get wrong
Many sellers either avoid the conversation altogether because it feels awkward, or jump straight to asking for a discount without first understanding how the fee works or what they may be giving up in return.
Questions to Ask
π¬ Can you explain how your commission is structured?
π¬ What exactly is included in that fee?
π¬ Is there any flexibility in the commission, and if so, how would that work?
π¬ If Iβm paying this rate, what do you believe Iβm getting in return?
π¬ How do you approach these conversations with sellers who are comparing a few agents?
π¬ If another agent has quoted less, how would you explain the difference in your approach?
Smart Seller Toolkit
Download the included resources to help you compare proposals, assess costs and approach commission conversations with more confidence.
π Commission Comparison Worksheet
π Marketing Comparison Worksheet
π Commission Conversation Scripts
SUpport
If you have any questions about anything covered in this series, youβre welcome to email me directly. My goal is to help you feel more informed, more confident, and better prepared before making any decisions.
Weβd love your feedback!
Your comments will help us improve this course and future resources.
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