Why Low Commission Real Estate Is Changing the Way We Buy and Sell

The traditional real estate model is being challenged — and for good reason. With property prices climbing over the years and agents taking a percentage-based cut, many sellers are questioning whether the standard commission structure still makes sense.

Enter low commission real estate — a modern approach that offers a more cost-effective way to sell your property without compromising on service. Whether you’re a homeowner looking to maximise your sale price or an investor protecting your margins, understanding how low commission works could mean big savings.

What Does "Low Commission" Actually Mean?

Typically, real estate agents charge 2% to 3% of the final sale price. While that may seem reasonable, it can result in tens of thousands of dollars in fees when you’re dealing with high-value homes. Let’s break it down.

With a property value of $1,000,000, a 2.5% commission would cost you $25,000. Now compare that to a low commission model at 1.5% — that’s just $15,000, meaning you could save over $10,000.

And if you factor in additional agency fees or marketing charges that are often built into traditional pricing, your real savings can be even greater.

Here’s a real-world example:

With a property valued at $1,100,000, a 2.5% commission would be $27,500. At 1.5%, the commission drops to $16,499.

That’s a savings of over $11,000 — and that’s just the agent’s cut.

Put simply: with a property value of $1,000,000+ you could save over $16,501 in commission. That’s money you keep in your pocket — or put toward your next property.

Is It Just About Saving Money?

The lower fees are a big part of the appeal, but low commission agencies also bring a more modern approach. These agencies tend to operate with lower overheads, embrace digital tools, and focus more on performance and transparency.

They're often leaner, faster, and more responsive. And because they rely heavily on word-of-mouth, reviews, and referrals, they’re motivated to deliver results that speak for themselves.

So, while low commission real estate saves you money, it also often means better service, better communication, and a more client-focused experience.

Who Benefits the Most?

The short answer is: nearly everyone.

But particularly:

Homeowners looking to maximise their net sale price

Investors who want to protect returns and reduce selling costs

Downsizers who want to retain equity for their next move

Experienced sellers who don’t need full-service hand-holding

Sellers in hot markets where properties sell quickly

It’s also a great fit for sellers with well-presented properties or in-demand locations — where the home largely sells itself with the right exposure.

What to Look for in a Low Commission Agent

Low commission doesn’t have to mean low service — but you still want to be selective.

Here’s what to check before signing:

Track record: Do they have experience selling in your suburb?

Marketing approach: Is it targeted, digital-savvy, and well-planned?

Inclusions: Are professional photos, open homes, and negotiation support part of the package?

Transparency: Are all fees clear upfront — with no nasty surprises?

Flexibility: Can you tailor the service to what you need?

A good low commission agent will still offer the essentials — market knowledge, pricing guidance, and negotiation expertise — but without charging a premium for services you may not even need.

Why the Industry Is Shifting

The real estate sector is evolving quickly. With more information online, buyers and sellers are more informed than ever. This has put pressure on agents to justify their fees and adapt to modern expectations.

Low commission real estate is part of that shift. Like ride-sharing transformed transport or online booking changed travel, property is now following the same path — towards efficiency, simplicity, and transparency.

And sellers are taking notice.

Final Thoughts

Selling a home is one of the biggest financial decisions you’ll make — so why give away more than you need to?

Low commission options are now widely available across Australia, offering a smarter way to sell. You get the same quality service, strong marketing, and expert negotiation — but at a fairer price.

With a property value of $1,000,000+ you could save over $16,501 in commission, just by choosing the right agent. That’s not pocket change — it’s money you could reinvest, save, or use for your next move.

If you’re thinking of selling, it pays to look beyond the standard 2.5% and explore what low commission real estate can do for you.