A 0.3% difference in commission can look significant on a proposal, particularly when you are selling a family home or investment property. But an agent commission comparison should not stop at the percentage. In Melbourne’s northern growth corridor, the better question is whether an agent’s strategy, buyer reach and negotiation can produce a result that more than covers the fee difference.
A lower commission is only a saving if the sale price, terms and selling experience remain strong. Before appointing an agent in Craigieburn, Epping, Wollert, Kalkallo, Mickleham or a nearby suburb, compare the complete service offer and make sure every cost is clear.
A sales commission is the fee paid to an agency for representing you through the sale. It usually reflects the work involved in preparing the property, launching the campaign, managing buyer enquiry, conducting inspections, following up interested parties, negotiating offers and coordinating the transaction through to settlement.
Commission structures vary. Some agencies quote a percentage of the final sale price, while others may propose a fixed fee or a performance-based structure. In Victoria, commission is negotiable, so it is reasonable to ask how the figure has been calculated and what is included in the service.
The key point is that commission is not the whole cost of selling. Your authority should also identify marketing expenses and any other applicable charges. Those costs can include professional photography, floorplans, signage, online advertising, copywriting, video, brochures and auctioneer fees where relevant. Ask whether amounts are inclusive of GST, when they are payable and what happens if the campaign is paused or the property does not sell.
Comparing three commission rates without comparing the sales plan can lead to a poor decision. A proposal with the lowest rate may also include limited buyer follow-up, minimal campaign reporting or a generic approach to pricing. Conversely, a higher fee is not automatically justified unless the agent can clearly demonstrate the expertise and activity behind it.
Start by placing each proposal side by side. Look at the commission rate or fixed fee, estimated marketing spend, proposed method of sale, campaign duration and any conditions attached to the agreement. Then assess what each agent will actually do to create competition for your property.
For a home in a fast-growing suburb, the difference often comes down to local buyer knowledge. An agent who understands whether buyers are prioritising school zones, transport access, lot size, a second living area, land potential or rental appeal can position the property with more precision. That affects the campaign message, the buyer database used and the conversations held during inspections.
Imagine one agent charges 1.8% and another charges 2.1% on a $750,000 sale. The commission difference is $2,250 before considering GST or marketing costs. If the second agent’s pricing advice, buyer management and negotiation achieve even a modestly stronger sale price, the additional commission may be outweighed by the improved result.
That does not mean vendors should simply accept a higher quote. It means the fee should be tested against evidence. Ask each agent how they will protect your price once an offer arrives, how they will manage multiple interested buyers and how often they will report campaign feedback. Strong negotiation is not a promise made at the listing presentation. It is a process that should be visible from the first inspection to the signed contract.
Marketing should be tailored to the home and likely buyer pool. A well-presented family home in Wollert may need a different campaign from a development-site opportunity in Epping or acreage near Mickleham. Broad online exposure matters, but so do quality presentation, accurate copy, buyer alerts, inspection strategy and direct follow-up with qualified prospects.
Ask for a clear campaign schedule rather than a vague assurance that the property will be advertised widely. You should understand which channels will be used, the purpose of each one and how performance will be reviewed. If enquiry is softer than expected, a capable agent should be able to explain what the market is saying and recommend practical adjustments.
A transparent agent should be comfortable discussing fees in plain language. Before you sign, ask how commission is calculated, whether GST is included, and whether the rate changes if the property sells above a certain price. Confirm the total marketing budget separately and request clarity about any costs that may apply if the authority is withdrawn or the property is sold after the agency agreement ends.
It is also worth asking who will handle your campaign day to day. Will the lead agent attend inspections and negotiate directly, or will the work be passed to another team member? Both models can work, but you should know who is accountable for buyer communication and decision-making.
Finally, ask for relevant local evidence. Recent comparable sales are useful, but the explanation behind them matters more. A credible appraisal should account for your property’s condition, land size, layout, location and current competing stock, not simply rely on the highest sale in the suburb.
A low-fee proposal can be attractive when selling costs are already adding up. However, it can become expensive if it results in an unrealistic price guide, weak campaign execution or an early acceptance of the first offer without properly testing buyer interest.
Overpricing is one common risk. If a property launches above where buyers see value, it may miss the strongest early enquiry period. The listing then risks becoming stale, and vendors can face more difficult negotiations later. Under-resourcing the campaign can create a similar issue: fewer inspections, less buyer intelligence and less competition when it matters.
The right agent will give honest advice, even when it is not the easiest message to hear. They should explain the likely price range using current evidence, outline the sales method that suits the property and be prepared to adjust strategy when real buyer feedback supports a change.
Selling a property is not only a financial transaction. It is a sequence of decisions that can feel demanding, especially when you are coordinating a purchase, managing tenants or selling a long-held family home. Clear communication has real value. You should know when inspections are scheduled, what buyers are saying, how enquiries are being qualified and where negotiations stand.
Local knowledge also becomes especially valuable in Melbourne North markets where new estates, infrastructure changes and differing land supply can influence buyer behaviour from one pocket to the next. A seller in Kalkallo may be competing with newly built homes and titled land, while an established home in Thomastown may appeal to a different buyer group altogether. One-size-fits-all advice rarely produces the best outcome.
At SKAD Real Estate, the focus is on making those local factors part of the sales strategy, with clear advice and practical campaign management from appraisal through to settlement.
The best commission proposal is not necessarily the lowest or highest. It is the one that gives you confidence in the likely net result, explains every cost transparently and sets out a credible plan to reach and negotiate with the right buyers.
Take the time to compare like for like, ask direct questions and assess the person behind the proposal. When an agent can explain their fee, substantiate their price advice and show how they will create buyer competition, you are in a far stronger position to sell with confidence.
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