Choosing the Right Sales Agent
This week, I received a question from someone asking for advice on how to choose a sales agent. It's such an important decision, so I thought I’d take the opportunity to share some impartial insights to help you make an informed choice.
Here are six key factors to consider when selecting a sales agent:
1. Commission
Commission is just one factor to consider, and it's negotiable. Most agents will quote a percentage of the sale price, typically ranging from 1.5% to 2.2%. The idea is that the higher the sale price, the more they earn. For example:
If your home sells for $2,000,000 at 2%, the agent earns $40,000.
If it sells for $1,950,000, they earn $39,000.
If it sells for $2,050,000, they earn $41,000.
While a $100,000 difference in price could mean a lot to you, it doesn’t significantly change the agent’s commission. Consider negotiating a tiered commission model where the agent earns a higher percentage, or fee, if they exceed a certain sale price. This creates a stronger incentive for them to push for the best outcome for you.
2. Marketing
Marketing is an essential part of selling your property, but it doesn’t need to be a blanket strategy across every platform. Focus on where your ideal buyers are, not just on driving traffic.
The key to great marketing isn’t about attracting lots of potential buyers, but the right buyers. You want people who are genuinely looking for a home like yours.
One of my favourite examples of a flexible marketing approach comes from the Novak Agency on the Northern Beaches, which offers a $0 marketing strategy for sellers who want to keep costs down.
3. Strategy
Your agent should present a clear strategy tailored to both your needs and the type of property you're selling. If an agent insists on an auction campaign when you’re more interested in a private sale, they may not be the right fit.
Some agents will suggest a staged approach, but if you're in a hurry to sell because you've already bought a new home, make sure the agent has experience with alternative strategies to meet your goals.
4. Their Network
The agent’s network is important, but it doesn’t always mean they need to sell in your area or at the same price point. What matters is whether they have access to the right buyers for your property.
If an agent claims to have a list of buyers ready, ask them specifics—like which properties those buyers have recently looked at. If they can provide details (e.g. "That buyer was the underbidder on a similar property in a neighboring suburb"), that’s a strong sign their network is active and relevant.
However, if you’re targeting a wide market and want to achieve the highest possible price, you may find that most buyers will see your listing on platforms like Domain or Realestate.com.au, making the agent’s network a secondary consideration.
It’s also worth considering the agent’s current sales activity. An agent with a solid track record and a high volume of recent sales may be better connected than someone with 20 years of experience but a smaller client base.
5. Estimated Value of Your Home
Agents will often provide a wide range of estimates for your property’s value. It’s essential to understand how they’ve arrived at that number and whether it aligns with your selling strategy. For example, if you want to sell off-market and all the comparable properties they’re using are from auction campaigns, the estimate may not be as accurate.
For unique or high-end properties, there may be limited comparable sales, and agents might hesitate to commit to a precise range. That’s okay, as long as the strategy allows for buyer feedback to adjust expectations.
Be wary of agents who promise a very high sale price upfront. In some cases, they may overestimate to secure your listing and later suggest price reductions. Look for an agent who is honest about potential price outcomes and transparent about their reasoning.
6. Trust
Above all, you need to trust your sales agent. If you're second-guessing their advice from the start, it will be difficult to follow their recommendations when it comes time to negotiate or accept an offer.
Trust is built on clear communication, honesty, and a shared understanding of your goals.
These six considerations all work together to help you make the right decision. Don’t think of them in isolation.
What’s important to you might differ from someone else’s priorities, and that’s perfectly okay.
If you’d like more guidance on choosing a sales agent, feel free to reach out. I’m always happy to help!
If you’ve found my content useful, helpful, or interesting and would like to say thanks - feel free to shout me a coffee. Thanks.
