If you've looked into selling without a traditional agent, you've probably come across the warnings. "Fixed fee agents have no incentive to get you a good price." "You get what you pay for." "It's dangerous."
These claims sound reasonable on the surface. A percentage fee means the agent earns more when you earn more, so their interests are aligned with yours. That's the theory. But if you sit down and do the actual maths on what a commission agent personally takes home from pushing your price higher, the theory falls apart fast.
What Your Agent Actually Pockets
Say your home is expected to sell for $800,000 and the agent charges 2.5% commission. That's $20,000 out of your pocket on settlement day. Now imagine the agent negotiates the buyer up from $800,000 to $840,000. An extra $40,000 for you. Proof the commission model works, right?
Look at what the agent actually sees from that extra $40,000. Their 2.5% cut is $1,000. The brokerage takes their split (usually 50%), leaving $500. After tax, call it $350. For weeks of tougher negotiations, the risk of the buyer walking away, and the emotional grind of holding firm on price, the agent's personal reward is less than a weekend away. Most people wouldn't do overtime at work for that kind of return. Why would an agent?
The real numbers on an $800,000 sale
Human nature takes over. When the personal upside is $350 and the downside is a collapsed sale, most agents will nudge you toward"meeting the market" or "taking the strong offer on the table." That's not bad people. That's a fee structure that rewards speed over price. An agent juggling 15 listings doesn't need your sale to be exceptional. They need it to be done. Selling your home for $780,000 this week instead of $820,000 next month barely touches their annual income. It costs you $40,000.
For an agent to personally pocket an extra $350, they need to get you $40,000 more. That's the incentive structure nobody talks about.
"Sold in 5 Days" is Not a Win
Scroll through any agent's social media and you'll see it everywhere. "SOLD in just 5 days!" Framed like a trophy. But think about what five days actually means. One weekend of home opens. A handful of buyers through the door. One person makes an offer and the agent says "take it." Did every serious buyer in your suburb even know it was listed? Did the couple who sold their place last Friday have time to arrange a viewing? Did interstate investors get a chance to compare? Of course not.
Five days is enough time for one eager buyer to snap it up before competition builds. And competition is what drives price. Not speed. When an agent sells your home in five days, they haven't found you the best buyer. They've found the first buyer. And the first buyer rarely pays the most.
Real example: Glendalough, 2025
An older character home needing renovation. Appraised at $1.3 million, with early offers matching that expectation. A traditional agent might have called that a "strong offer at appraisal" and pushed the seller to accept.
The seller waited. Gave the market proper time to respond.
Fifteen days in, a buyer offered $1.5 million. $200,000 more than the appraisal. That's what proper market exposure looks like.
That Glendalough seller didn't need a more motivated agent. They needed more time in the market. Fifteen days. That's all it took for the right buyer to find the property, see its potential, and pay $200,000 more than the appraisal. Speed served nobody except the agent who wanted to collect commission and move on to the next listing.
A well-priced property generates competition over two to four weeks. It creates urgency through demand, not through accepting whatever comes first. Every day your home sits on market isn't a failure. It's an opportunity for the right buyer to appear.
What Actually Gets You a Better Price
If commission doesn't drive better results, what does? Three things: accurate pricing from day one, proper market exposure, and an agent who can't afford to deliver a bad result. The first two are straightforward. Price too high and buyers don't enquire. Price too low and you leave money on the table. List for too short and the market hasn't seen it. These are process problems, not fee-structure problems.
The third one is about incentive structure. Think about how a commission agent actually earns their living. They don't get paid until settlement. The more listings they can process in a year, the more they earn. An agent handling 30 sales at $15,000 commission each makes $450,000. An agent handling 20 sales at $20,000 each makes $400,000. Volume wins. That creates a rational incentive to move fast, close deals, and get to the next listing. Spending an extra two weeks negotiating your price up $30,000 earns them maybe $500 after splits and tax, but costs them time they could spend winning their next $15,000 commission.
Fixed fee changes that equation. When the fee is the same regardless of sale price, there's no financial reward for rushing. An agent spending three weeks to get you an extra $40,000 earns the same fee as one who accepts the first offer in five days. The incentive to churn through listings disappears. What remains is the incentive every service business has: do good work so clients recommend you to their friends. With lower margins per sale, a fixed fee agent's business genuinely depends on referrals in a way that a high-commission agent's doesn't.
Now, a fair point. Not every fixed fee operator is equal. Some are genuinely just discount services cutting corners. They'll list your home, put it on the portals, and leave you to it. If that's what you're getting, the scepticism is warranted. The difference is between cutting corners and cutting commission. A good fixed fee service gives you licensed professionals, proper marketing, contract handling, and negotiation support. You just don't pay a percentage of your home's value for it.
Commission rewards volume. Fixed fee rewards results. Ask yourself which incentive structure you want working for you.
Questions Worth Asking
How do I tell a quality fixed fee agent from a discount one?
Ask what happens after you list. A discount service uploads your photos and walks away. A quality fixed fee agent handles pricing strategy, buyer enquiries, negotiations, contract preparation, and settlement coordination. Same professional service, different fee model.
What if my home doesn't sell?
With most fixed fee models, you don't pay unless the property sells. No upfront risk. If circumstances change or the market shifts, you're not out of pocket. Compare that to the marketing costs traditional agents ask you to pay upfront regardless of outcome.
Can a fixed fee agent handle complex negotiations?
Negotiation skill comes from experience and preparation, not fee structure. A good negotiator analyses comparable sales, understands buyer psychology, and knows when to hold firm. None of that changes because the agent charges a flat rate instead of a percentage.
How long should my property be on market?
Most well-priced properties in Perth attract serious interest within 2-4 weeks. That's enough time for proper market exposure without going stale. Be wary of agents who promise (or celebrate) selling in days. Speed usually means the price was too low, not that the agent was too good.
Why do traditional agents criticise fixed fee models?
Because fixed fees expose an uncomfortable truth: the service an agent provides on a $600,000 home is nearly identical to the service on a $1.2 million home. A percentage fee charges you double for the same work. That's hard to justify once a seller notices it.
What should I look for in any agent, fixed fee or not?
Local knowledge, a clear marketing plan, transparent communication, and a track record of results in your area. Check reviews from recent sellers (not just listings won). Ask how many properties they're currently managing. If they're juggling 20+ listings, your home won't get the attention it deserves.
Choose the Model That Works for You
You've lived in your home for years. You know the street, the neighbours, the morning light through the kitchen window. You know what it's worth. The question isn't whether you need help selling. Most people do, and there's no shame in that. Contracts are complex. Negotiations are stressful. Settlement coordination takes expertise.
The question is whether that help should cost you $25,000 or whether a fair fixed fee for a defined professional service makes more sense. Whether you want an agent motivated by a quick commission or one motivated by doing a good enough job that you tell your friends.
The "no incentive" myth relies on you not doing the maths. Now you have. The rest is up to you.
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For broader insights into real estate fee structures in Australia, see consumer guidance from the Australian Competition & Consumer Commission (ACCC).