Cheap Commission vs Expensive Commission: Which Agent Will Actually Put More Money in Your Pocket?

When choosing a real estate agent, one of the first questions many sellers ask is, "What's your commission?"

While commission is certainly an important factor, it shouldn't be the only one. In fact, choosing an agent purely because they charge the lowest commission can sometimes end up costing you thousands — or even tens of thousands — of dollars.

At the same time, paying the highest commission doesn't automatically mean you'll receive the best service or achieve the best result either.

The key is understanding the value you're receiving for the commission you pay.

Don't Focus on What You're Paying – Focus on What You're Keeping

Many sellers become focused on saving a few thousand dollars in commission, but overlook the bigger picture.

Let's use a simple example.

Imagine one agent charges a lower commission and sells your home for $780,000.

Another agent charges a slightly higher commission but negotiates a sale price of $810,000.

Even after paying the additional commission, you're still significantly better off because the higher sale price has more than covered the difference.

The cheapest commission isn't always the cheapest outcome.

Why Do Some Agents Charge Less?

There are many reasons why agents discount their commission.

Some are new to the industry and are trying to build market share.

Some simply compete on price because they struggle to compete on experience, negotiation skills, marketing strategy, or proven results.

Others believe lowering their fee is the easiest way to win your business.

There's nothing wrong with an agent offering a competitive commission. However, it's important to ask yourself whether you're choosing them because they're genuinely the best person to sell your property, or simply because they're the cheapest.

More Buyers Often Means More Competition

A great agent doesn't simply put your property online and wait for enquiries.

They actively create competition between buyers.

This includes:

• Building excitement before launch.

• Following up every buyer after inspections.

• Negotiating multiple offers.

• Using their database effectively.

• Managing buyer emotions throughout the campaign.

  
  

These skills often have a far greater impact on your final sale price than a small difference in commission.

Expensive Doesn't Always Mean Better

Just because an agent charges a premium commission doesn't automatically mean they'll achieve a premium result.

Some agents have exceptional track records and can justify a higher fee through consistently strong outcomes.

Others simply charge more because they have a well-known brand or a larger market presence.

When comparing agents, ask them to explain exactly what they're offering for their commission.

Questions worth asking include:

• How many properties similar to mine have you sold recently?

• What marketing strategy would you recommend?

• How will you generate buyer competition?

• How will you keep me updated throughout the campaign?

• Can you explain how you arrived at your price estimate?

  
  

The answers to these questions will often tell you far more than the commission percentage alone.

The Cheapest Agent Can Sometimes Be the Most Expensive

Imagine you're choosing between two agents.

Agent A charges a commission that is $2,000 less than Agent B.

At first glance, Agent A appears to be the cheaper option.

However, if Agent B's experience and negotiation skills help achieve an extra $15,000 on the sale price, you've effectively gained an additional $13,000 after accounting for the higher commission.

That's why experienced sellers often focus less on the fee itself and more on the net amount they'll receive after the property has sold.

So What Is a Fair Commission?

There is no single "correct" commission rate.

Every property, market, and campaign is different.

The goal shouldn't be to find the cheapest agent or the most expensive one.

Instead, focus on finding an agent who can clearly demonstrate:

• A strong track record in your area.

• Excellent negotiation skills.

• A well-planned marketing strategy.

• Honest advice supported by comparable sales.

• Clear communication throughout the campaign.

  
  

The right agent should be able to justify their commission through the value they provide, not simply by promising the highest price or offering the lowest fee.

The Bottom Line

Choosing an agent based solely on commission can be a costly mistake.

A lower commission may save you a small amount upfront, but if it results in a lower sale price, you've likely paid far more than you saved.

Likewise, paying a premium commission only makes sense if the agent can demonstrate why they're worth it.

The best decision is rarely based on who charges the least or the most. It's about choosing the agent who is most likely to leave you with the highest amount in your bank account once everything is said and done.

At Ballarat Agent Match, we help homeowners connect with experienced local agents who are selected based on their proven performance, negotiation ability, and suitability for your property — not simply who charges the lowest or the highest commission. The goal is simple: help you choose the right agent to maximise your overall result, not just minimise your fees.