Is a low commission real estate agent right for me?
A low commission real estate agent is best for sellers who want to save money on real estate fees while still getting full service and support with their home sale.
With a low commission real estate agent, you'll typically pay a 1-1.5% listing fee instead of the standard 2.5-3% that traditional real estate agents charge. But you'll still get all the essential services you need for a successful sale.
A low commission real estate agent might not be for you if you have real estate experience and want to handle more of the sale process on your own. Limited-service brokerages or flat fee companies charge even lower fees and make sense for very straightforward sales, like if you're selling a turnkey home in a hot market.
For most sellers, a full-service low commission real estate agent strikes a good balance between savings and service. You'll save a lot of money without having to sacrifice on support and guidance.
What is a low commission real estate agent?
While the typical real estate agent charges a 2.5–3% listing fee, a low commission real estate agent will list and sell your house for a discounted rate. The best low-cost real estate agents offer the same service as a full-commission real estate agent for as little as 1.5%, saving you thousands on real estate fees. Often, real estate agents offer lower commissions as a way to gain new clients.
What's the average real estate agent commission?
The average real estate commission rate is 2.89%, although it varies from in different parts of Australia.
How much can I save with low commission real estate agents?
You can save 0.5–1.5% of the final sale price of your home with low commission real estate agents.
Low commission real estate agents typically charge a 1-2% listing fee instead of the average listing fee of 2.89%. On a $400,000 home sale, that translates to commission savings of $3,320–7,320.
Here's how much you can expect to save at different price points if you work with a low commission real estate agent that charges a 1% listing fee (like Minty):
Are there any risks of using low commission real estate agents?
Some low commission real estate agents are riskier to work with because their agency:
- Uses a team-based service model
- Charges high minimum fees
- Doesn't offer full service
With a team-based model, different people at the brokerage handle different aspects of your sale. This approach can lead to less personalised service from your real estate agent and increase the chance of miscommunication and mistakes.
Some low commission real estate agents work with agencies that charge high minimum fees, sometimes up to $8,500 in certain areas. If you’re selling a home at a lower price point, these minimum fees could negate any potential savings.
Other low commission real estate agents work for a lower fee by offering fewer services, which could leave you without the support you need.
How to choose the best low commission real estate agent
To determine if a particular low commission real estate agent is right for you, start by reviewing the specific services they offer. Look for key things like whether the agent will do in-person consultations, provide pricing guidance (such as a CMA), help with staging and showings, and assist with negotiations and paperwork.
Once you've narrowed down your search to a few agents, we recommend looking them up on Google, Rate My Agent or realestate.com.auto get a sense of other sellers' experiences. Has this agent sold several houses recently in your price range and market? Do reviews mention any red flags, like lack of agent responsiveness or sellers feeling like they had to do a lot of legwork themselves?
We recommend interviewing 2-3 prospective agents before making a decision. Finding a good personality fit is important. A good agent will make you feel comfortable, take the time to understand your individual needs, and provide a clear plan for how they'll help you achieve your goals.
