How to Choose a Realtor: The Real Dollar Cost, and a Trick to Watch For

Learning how to choose a realtor means more than checking reviews. It means understanding what commission actually costs you, and spotting a common trick some agents use to win your listing. Here’s the real process.

Quick Answer: How to Choose a Realtor

Interview at least 2-3 agents before deciding. Ask each one the same questions about their sales record, marketing plan, and fees. Commission in Australia typically runs 1.6% to 3.5% of the sale price, varying by state and property type. On a $700,000 sale, that’s $11,200 to $24,500. Watch for agents who quote an unusually high price estimate just to win your listing, then pressure you to drop it later. The agent with the highest quoted price isn’t always the one who’ll get you the best result.

What Commission Actually Costs You

• Commission usually runs 1.6% to 3.5%. The exact rate depends on your state, property type, and sale price.
• On a $700,000 sale, that’s $11,200 to $24,500. A 1% difference in commission rate can mean thousands of dollars either way.
• The lowest commission isn’t automatically the best deal. A slightly higher rate paired with a stronger marketing plan and sales record can still net you more overall.
• Ask each agent to itemise their fee. Some rates include marketing costs, others charge marketing separately.

The “Buying the Listing” Trick

• Some agents quote a high price estimate to win your business. It sounds appealing, but it isn’t always realistic.
• They may pressure you to drop the price later. Once you’re locked into a listing agreement, a string of “no offers yet” updates often leads to a price cut suggestion.
• Compare estimates against real recent sales, not just the agent’s word. Ask for comparable sold properties in your area, not just their opinion.
• A realistic estimate from day one saves stress later. An honest agent should be able to explain their number with real data.

How to Choose a Realtor: Interview Multiple Agents

• Meet with at least 2-3 agents. This gives you a genuine basis for comparison, not just one opinion.
• Ask about their recent sales in your area. A strong local track record for similar properties is a good sign.
• Ask for their marketing plan in detail. Find out exactly what’s included and what marketing costs on top of commission.
• Ask how they arrived at their price estimate. Request comparable recent sales, not just a number.
• Trust your comfort level too. You’ll be working closely with this person through a stressful process, so rapport matters.

Red Flags to Watch For

• A price estimate well above every other agent’s. This can be a sign of the “buying the listing” tactic rather than genuine market knowledge.
• Vague answers about their marketing plan. A good agent can explain exactly where your money goes.
• Reluctance to share recent comparable sales. This makes it hard to verify their price estimate is realistic.
• Pressure to sign quickly. A trustworthy agent will give you time to compare options.

Beyond Commission: What Else to Weigh

• Marketing costs can add up separately from commission. Ask whether photography, listing fees, and advertising are included or extra.
• Communication style matters throughout the process. Some agents give frequent updates, others are harder to reach.
• Auction experience matters if you’re going that route. Ask about their specific auction success rate, not just general sales numbers.
• Local market knowledge often beats a bigger brand name. An agent who knows your specific street can price and market more accurately than one working across a wider area.

FAQ: How to Choose a Realtor

How many real estate agents should I interview?
At least 2-3, so you have a genuine basis for comparison rather than just one opinion.

How much commission do real estate agents charge in Australia?
Typically 1.6% to 3.5% of the sale price, varying by state, property type, and the agent’s marketing package.

What does commission cost on a typical home sale?
On a $700,000 sale, commission between 1.6% and 3.5% works out to roughly $11,200 to $24,500.

Why do some agents quote a higher price estimate than others?
Some agents inflate their estimate to win the listing, then pressure the seller to drop the price later. Always ask for comparable recent sales to check the estimate is realistic.

Is the cheapest commission always the best choice?
No. A slightly higher rate paired with a stronger marketing plan and sales record can produce a better overall result than the lowest quote.

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