Your choice of real estate agent to handle the sale of your property is significant. Many sellers conduct thorough research on and interview multiple agents. Commission plays a role in most people’s decision making, yet seldom is it the driving factor of a seller’s decision.

But when comparing agent’s commission rates, what should you be on the lookout for?

Discount agents often boast that their capped commissions and lower fees are advantageous for sellers. The allure of a lower fee may lead some to consider hiring a discount agent. At Johnson Real Estate we believe it’s the hidden costs that sellers later regret.

What is the risk of choosing a discount agent? From a business perspective, these agencies operate on a high stock turnover model to survive. Their focus is on volume of sales, not on a seller’s final sale price.

Discount agents prioritise completing ‘deals’ to survive, irrespective of the final sale price. Their aim is to get the sale done, and move on. The seller may pay a lower fee but the outcome is less money in their pocket after the sale.

Would you rather pay an agent $8,000 in commission and sell for $600,000, or pay $15,000 for a $650,000 sale? You’d rather the latter. This may seem an extreme example; it isn’t. Discount agencies across south east Queensland are notorious for selling property for less than what was available from the market.

When deciding on which agent to hire, give thought to the final amount received from the sale. This figure is far more important than the commission being paid. Put another way, focus on value over cost.

Of course, if an agent is charging a higher commission, ask ‘Why?’. Have them prove their value to you. If they cannot, they may not be worth their fee.

Some real estate agents are worth their weight in gold, yet plenty are not. Take the time to find one you believe is working for your bottom dollar, not theirs.