Why Choosing a Cheap Agent Could Cost You Thousands

When it comes time to selling your home, one of the first questions most sellers ask is simple.

What is your commission?

It is a fair question. Commission is one of the few costs in the transaction that feels negotiable and visible. So when one agent quotes 2.5 percent and another offers 1.5 percent plus GST, the lower number can feel like an obvious decision.

Pay less. Keep more.

But selling property does not work that way.

The uncomfortable truth is that discount agents often deliver discount outcomes. What looks like a saving at the beginning can quietly become a loss by the end of the process. The danger is that the impact is not always visible until settlement day, when it is too late to change course.

Commission Is a Cost. The Sale Price Is the Outcome.

Commission is easy to compare because it is clear and measurable. It is written into the agreement. It feels concrete.

What is far less obvious at the beginning is the final sale price. That number is influenced by strategy, positioning, buyer competition, confidence and negotiation skill. It is influenced by how well the agent understands the local market, how effectively they qualify buyers, and how strategically they manage timing.

When you choose an agent purely because they charge less, you are focusing on one of the smallest numbers in the transaction rather than the largest.

Consider this simple comparison.

Agent A charges a lower fee and sells your property for $920,000.

Agent B charges a higher fee and negotiates $970,000.

Even after paying the higher commission, which scenario leaves you in a stronger financial position?

The real question is not who charges less. The real question is who delivers more.

In property, a small percentage difference in commission can be overshadowed by a much larger percentage difference in sale price. The outcome determines your equity, your next purchase, and your overall financial position.

Negotiation Begins Before Your Home Is Listed

There is a critical point many sellers overlook.

If an agent cannot confidently negotiate and defend their own commission with you, how do you expect them to negotiate the highest possible price for your property with a buyer?

The commission discussion is the first negotiation in the relationship. It sets the tone. It reveals how that agent handles pressure, objection and resistance.

If an agent immediately reduces their fee just to secure the listing, it raises an important concern. Are they confident in their value? Are they comfortable holding firm under pressure? Do they believe in their ability to justify their worth?

Strong negotiators do not simply concede. They justify their worth. They explain their strategy. They stand by their position when it makes sense. They are comfortable saying no when needed.

Because if an agent discounts themselves easily, there is a real risk they will discount your property just as easily when faced with a determined buyer who pushes back on price.

Negotiation is not a switch that turns on at auction or during contract discussions. It is a mindset. And you want an agent whose mindset is built around strength, confidence and performance from the very beginning.

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The Business Model Behind Low Fees

There is usually a reason some agents compete heavily on price.

Lower fees often require higher volume. More listings. Faster turnover. Quicker deals. The focus becomes maintaining pipeline rather than maximising each individual result.

When volume becomes the focus, attention per property can decrease. Marketing can become standard rather than strategic. Open homes can feel routine rather than purposeful. Follow up with buyers can lack intensity.

There may also be less willingness to spend time negotiating marginal gains. The difference between a good price and the best possible price often requires persistence, follow up and pressure. That takes time and effort.

This is not about criticising lower fee agents. It is about understanding alignment. If an agent wins your business because they are the cheapest, their competitive edge is price.

When it comes to selling your property, performance should be the competitive edge.

The Real Money Is Made in Negotiation

Marketing attracts buyers. Negotiation extracts value.

A skilled agent creates competition between buyers. They build urgency. They manage emotion. They know how to leverage one offer against another without losing momentum. They understand when to slow the process down and when to accelerate it.

They also know how to read people. Buyer hesitation, body language, tone shifts and timing all matter. These subtle factors can influence thousands of dollars in the final figure.

The difference between an average negotiator and a strong one can easily be tens of thousands of dollars.

Trying to save 8000 dollars in commission but losing 40000 dollars in sale price is not a saving. It is an expensive decision disguised as a smart one.

When you view commission in isolation, you miss the bigger picture. The final sale price is what determines your net outcome, your profit and your next financial move.

What Sellers Should Be Asking Instead

Rather than focusing only on the percentage, sellers should ask better questions.

  • What is your strategy to create buyer competition?
  • How do you handle low offers?
  • What is your average sale price compared to your listed price?
  • How many buyers do you actively speak to each week?
  • Can you show examples where you negotiated beyond the initial offer?
  • How will you ensure my property is not undersold?

These questions shift the conversation from cost to capability. They force the agent to demonstrate process, performance and proof.

An agent who can clearly articulate their strategy and demonstrate consistent results is often worth far more than the difference in commission.

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The Agent Choice® Perspective

At AgentChoice®, we believe sellers should compare more than just fees.

The right agent is not simply the one who charges the least. It is the one who demonstrates performance, strategy, negotiation strength and a proven ability to maximise outcomes.

Selling your property is one of the largest financial decisions you will make. It impacts your future plans, your family and your financial security. It deserves careful evaluation, not just a quick percentage comparison.

Cheap feels smart at the beginning. Results feel smart at settlement.

The goal is not to pay the lowest commission. The goal is to walk away with the highest possible net result.

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