Choosing a real estate agent is one of the most important financial decisions you will make. The wrong agent can cost you tens of thousands of dollars — through underquoting, poor negotiation, or inadequate marketing. This guide walks you through exactly what to look for and what to ask before you sign an authority.
The Problem Most Sellers Make
Most sellers choose an agent based on who gave them the highest appraisal. This is one of the most reliable ways to get a poor result. Agents who quote high to win the listing then manage your expectations down over weeks — a practice known as conditioning. By the time you sell, you have lost weeks of market freshness and negotiating leverage.
What to Look for in a Real Estate Agent
1. Recent Local Sales Volume
How many properties have they sold in your suburb in the last six months? An agent who has sold 15 properties in Northcote this year knows the buyer pool, the price points, and the negotiation dynamics. An agent who sold two is guessing.
2. Average Days on Market
A good agent sells properties quickly, because they price correctly and negotiate decisively. Ask for their average days on market for their last ten listings in your suburb.
3. Vendor Discount
Vendor discount is the percentage difference between the asking price and the final sale price. A low vendor discount (under 3 per cent) means the agent prices accurately and negotiates well. A high vendor discount means they overpromise and underdeliver.
4. Buyer Database Quality
Ask how many qualified buyers they have on their database actively looking in your price range and suburb. This is not a vanity number — it is what drives early offers before your property hits REA and Domain.
5. Negotiation Philosophy
Ask how they handle multiple offer situations, how they negotiate once a buyer is interested, and what their process is for auction versus private sale. An agent who gives vague answers has no clear process.
Questions to Ask Every Agent Before You Sign
- How many properties have you sold in this suburb in the last six months?
- What is your average days on market for those sales?
- What was your average vendor discount over the last 12 months?
- How many active buyers do you have looking in my price range right now?
- What is your marketing strategy for my property specifically?
- How will you communicate with me during the campaign?
- What is your recommendation on method of sale and why?
- What is your commission rate and what does it cover?
Red Flags to Watch For
- The highest appraisal with no comparable evidence to support it
- Pressure to sign quickly or before the weekend
- Vague answers about their database or buyer pipeline
- No clear marketing plan beyond REA and Domain
- Unwillingness to discuss vendor discount or days on market
- Commission that seems surprisingly low — often means a reduced service model
Consider a Property Advisor as an Alternative or Complement
If you want to sell but feel uncertain about the agent selection process, negotiation strategy, or pricing — a Collings Property Advisor can help. For a fixed fee of $4,500 + GST, we provide independent pricing analysis, campaign strategy advice, and negotiation support — without the commission incentives that can create conflicts of interest.
This is particularly valuable if you have received multiple agent appraisals with very different price ranges and need a clear, independent view on where your property should be priced.
Frequently Asked Questions
How many agents should I interview before choosing one?
At least three. Do not choose on appraisal alone — compare their evidence, their process, and their communication style. The agent you feel most confident negotiating alongside is often the right choice.
Should I choose the agent with the lowest commission?
Not necessarily. Commission is a small percentage of your sale price. If an agent can achieve $30,000 more for your property, paying an extra 0.3 per cent commission is irrelevant. Focus on capability, not cost.
What is a typical agent commission in Melbourne?
Generally 1.6 to 2.5 per cent of the sale price, negotiable. On a $1.5M property that is $24,000 to $37,500. This is why getting the right agent — and the right result — matters so much.
Want an independent view on your selling options? Collings Property Advisory gives you a clear pricing assessment and campaign strategy. Fixed fee $4,500 + GST.
Find your next property with Collings
Track suburbs, get matched to on-market and off-market listings, and manage your whole property search in one place. Access the Collings property portal.
