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Posted by Geoff Gill on June 5, 2017
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Whether in a fast or slow property market, does paying commission make financial sense?
I often wonder, when I read and hear about the huge gains in property values in Melbourne or Sydney why sellers continue to rush to commissioned agents to sell.

Likewise I despair over many regional towns in Queensland showing virtually no growth in the median price of properties over a ten year period, and yet are handing over thousands in commission to agents who generally sell their properties at a lesser price than originally listed.

In the first scenario, in the Melbourne and Sydney market, buyers are falling over themselves to purchase property thus causing ever increasing values and lessening the number of properties available for sale.  This demand is ensuring properties sell very quickly without being discounted with sellers paying substantial commission and marketing costs.

So in an environment where demand is high, supply is dwindling, why do sellers pass over (happily it seems) such huge sums of money to agents who, because of demand have very little sales input into the sale?  If I was lucky enough to own a property in Melbourne or Sydney and decided to sell it, I would definitely sell it myself and put all that commission and marketing costs in MY pocket!

In the second scenario above, thousands of property owners in regional Queensland have seen their capital gains over ten years remain at zero, and in many cases, losing value.  Added to this disappointing scenario is the length of time it takes to sell the property.  So you see, this is the old supply and demand case where there are more properties for sale than buyers, so prices fall, and sale of property takes generally much longer.

So in a disappointing period for sellers who desperately want to sell or have to sell, why are they so automated to engage commission agents who know that to sell a property in tough times, the listing price must be reduced until a buyer is caught?  Remember, most commissioned agents do not get a wage therefore they have to rely on a sale to get a portion of the commission to put food on the table, petrol in their car, etc., etc.

Now, there will always be sellers who, for various reasons, e.g. lack of confidence, pride, well able to afford commission etc., etc., will engage an agent, and well they should.

However for the rest of you who are suffering from falling property prices, financial difficulties, needing to relocate for work, downsize, retire, you want to get the best possible return from your home sale.  Right?

Well there is another way and it makes absolute financial sense.  Let me deviate for a moment.  History shows us that when an industry or service dominates a particular market (monopoly), prices go up and service drops way off.  Examples are the grocery industry, telecommunications, real estate, fuel, internet and many others.  When this happens other companies, sometimes called ‘disrupters’, come along and take on the major players and change completely the pricing, methodology, service and other cost savings to benefit the consumer.

Back to real estate, which traditionally has dominated the way people sell property for decades, particularly in Australia.  People who are involved in real estate in Australia are part of a multi-billion dollar per annum industry – even bigger than mining!

Remember the GFC (Global Financial Crisis)?  Not so much in Australia but many countries economies were devastated and the real estate – property values of people’s homes.  What happened?  Smart operators set up agencies to allow people to sell their own property and it boomed and still is!

Now in Queensland, sellers have a new option to sell their homes AND pocket the commission!  Total Clarity Realty is the new disrupter in Queensland real estate and changes completely the once only ‘option’ to sell your property.

Powerful marketing strategies, low cost to sellers, great service AND NO COMMISSION!

At last, a real estate agent that cares for you, to get YOU selling and pay YOURSELF the commission!

IT'S AS SIMPLE AS 1, 2, 3!

Click here for details


1300 585 836