Costs & Fees · 5 min read

Real Estate Agent Commission in Australia: Questions for Sellers to Ask

A neutral checklist for Australian sellers reviewing agent fees, services, agreements and responsibilities before choosing how to proceed.

Real Estate Agent Commission in Australia: Questions for Sellers to Ask

When preparing to sell a property, an agent proposal can contain more than a headline commission. It may also describe services, marketing arrangements, authority to act, payment conditions and responsibilities for the seller. Reading the proposal as a complete arrangement, rather than focusing on one figure, gives you a practical basis for asking questions and recording decisions.

This article is a neutral organising framework for seller questions. Requirements, costs and outcomes vary according to the property, location, selling method and agreement. Where a question concerns legal, tax or other professional matters, ask an appropriately qualified independent professional. Any drafted material, listing information or response prepared for a sale should be checked by the seller before it is used.

Gather the documents

Ask for the proposed agency agreement, fee schedule, marketing schedule and any other document referred to in the proposal. Read the documents together and mark terms that are unclear, inconsistent or missing. Keep a written list of questions rather than relying on recollection from a conversation.

Check whether the documents identify:

the parties to the agreement
the property and the authority being granted
the services the agent will provide
tasks that remain with the seller
fees, expenses and payment conditions
the duration of the arrangement
ways the arrangement can be changed or ended
obligations that may continue after the arrangement ends

Ask for explanations in plain language. If an answer changes the wording or scope of the proposal, request the document be updated so the record reflects what has been discussed.

Understand how payment is described

Ask the agent to explain how any commission, fee or expense is calculated and what event makes it payable. Questions may include:

Is the amount a percentage, a set fee, a tiered arrangement or a combination?
What amount is used for the calculation?
Are taxes or third party charges included or separate?
Which expenses require approval before they are incurred?
When is payment due?
What happens if the property is withdrawn, the agreement changes or another person completes the sale?
Are there post-agreement provisions that should be understood?

Ask for a written explanation of any example used in the discussion. Treat an example as an explanation of the wording, not as a prediction about a sale. If the calculation remains difficult to interpret, ask an appropriate independent professional to review the relevant terms.

Compare the work included

A meaningful comparison considers the work attached to each proposal. Ask who will handle enquiries, inspections, records, communication, presentation of offers and negotiations. Find out whether work will be performed by the named agent, another person or an external provider.

Clarify the seller's role in approving listing information, photographs, advertising material, inspection arrangements and responses to offers. Ask how instructions will be recorded and how the seller will be contacted before an action is taken. Confirm what reports, records or documents the seller will receive during the engagement.

Do not assume that a service is included because it was mentioned in a conversation. Ask for each inclusion, exclusion and optional item to be identified in writing.

Consider responsibilities under different selling methods

The tasks attached to a sale can change when the selling method changes. Prepare a worksheet that lists responsibilities for property information, presentation, enquiries, inspections, offer records, communication and document storage. For each task, identify who is expected to perform it, what approval is required and what information must be retained.

If the seller will manage any part of the process, ask what systems, records and response arrangements will be needed. Consider how instructions will be handled when the seller is unavailable and who may access sensitive documents. Ask an appropriate professional about any requirements that apply to the seller's circumstances rather than assuming that a general checklist covers them.

Ask about authority and communication

Before signing, ask what authority the agent receives and what decisions remain with the seller. Clarify who may communicate with prospective buyers, arrange access, receive or present offers, negotiate terms and approve changes to the listing.

Ask how conflicts, complaints, changes of instruction and missed appointments are handled. Decide how important instructions will be confirmed and where copies of messages, approvals and offers will be stored. A written communication process can provide a record of what was requested and when.

Turn legal and tax subjects into questions

Legal and tax consequences depend on the seller's circumstances and the documents involved. Do not rely on a general article to resolve those matters. Ask a qualified solicitor, conveyancer, accountant or other appropriate independent professional questions such as:

What obligations may arise from this agreement?
What authority or disclosure matters should I ask about?
What records should I retain for the transaction?
Are there tax questions I should raise about the property or proposed sale?
What should I check before accepting an offer or changing the selling method?
Does ownership through a trust, company, estate or another arrangement create questions for my adviser?

Record the professional's response and identify which document or decision it relates to. Ask for further explanation when a term is unfamiliar or its effect is uncertain.

Use a final seller checklist

Before proceeding, write down the answers to these questions:

What work is included, excluded or optional?
Which costs may arise, and when could they be payable?
What tasks and approvals remain with me?
What authority am I granting?
How long does the arrangement operate?
What happens if my instructions change?
What steps apply if the arrangement ends?
Which questions still need an independent professional's response?

Keep copies of the proposal, signed documents, approvals, invoices and communications. Check listing details and any drafted material yourself before authorising publication or sending it to another person. A careful review does not determine which selling method is appropriate; it helps you identify the arrangement, responsibilities and unanswered questions that require your decision or professional input.