Commission is one of those topics in real estate that comes with plenty of misconceptions. There can be a perception that agents don’t do all that much to earn it, or that commission is another hefty bill that appears at the end of a sale. Unless you’ve bought or sold property before, chances are you’ve never had a frank conversation with an agent about how it works, what you’re paying for and why rates differ.
So, in the interests of transparency, and lifting the lid on a topic the industry doesn’t always talk openly about, we thought we would.
At Aspire, we’re very clear about how we approach commission and why. We don’t aim to compete on discounted rates, but on service. When you sell a property, you are entrusting an agent with one of the largest financial transactions you are likely to make, and their job is not just to find a buyer. It is to create the conditions for the strongest possible result by positioning the property well, drawing on established buyer networks, reaching the full market and knowing how to negotiate when it matters. When the stakes are this high, choosing an agent on price alone can prove to be a false economy.
It’s also important to note that agents don’t get paid unless a property sells. What you are paying for is the time, experience, market knowledge, buyer relationships, strategy and, importantly, the ability to negotiate the strongest possible outcome when it counts.
This also creates a simple commercial reality when it comes to heavily discounted commission. If an agent is earning considerably less from each sale, there can be greater pressure to turn properties over quickly and move on to the next one. That can mean less time to explore every opportunity. For a vendor, that can be the difference between an acceptable offer and the best offer achievable, and that difference can be worth considerably more than the commission paid. That’s why we think commission needs to be considered in the context of the overall result, rather than as a standalone cost.
There is another part of the equation that is less obvious. Aspire operates an open, one-agency approach, which means our clients’ properties can be introduced to buyers working with other agencies. We want every genuine buyer to have the ability to compete for a property, regardless of which agent they first spoke to. Our commission structure allows that cooperation to happen, rather than creating a financial barrier to bringing another agency and their buyer to the table.
Ultimately, an agent should be able to clearly explain what they charge, what you receive in return and how their approach is designed to maximise your result. If you are entrusting someone to negotiate firmly on your behalf when hundreds of thousands, or millions, of dollars are at stake, it’s also worth considering how confidently they value and negotiate their own service.
Commission matters, but the number that matters most at the end of a sale is what you walk away with. We are happy to be judged by our results.
Category Selling