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Here’s Why Low Commission Real Estate Agents Aren’t a Good Idea 

When you do something big financially, like selling your home, you’re going to be looking to increase the profit you walk away with, so it can be tempting to find a low-commission estate agent. This is different from an affordable real estate agent who has competitive commissions as you still get a great package, but low commissions often come with risks, which we will explore below. 

How Cheaper Agents Make Money

Super cheap agents usually make money from high turnover, which makes for a steady cash flow. Essentially, this means they look at your property as a commodity and want to make a sale fast, instead of focusing on a great result. So, they don’t care about the value of the sale, they’re more interested in any sale. 

The above process is what leads to the lowered price point, if the agent isn’t trying to get you a higher price, what would they be charging for?

Beyond this payment model, some low-commission agents offer low commissions but high marketing fees or steep upfront costs for every little thing like taking photos or advertising. These add-ons can quickly make the low-commission fee completely redundant. 

Risk of Using Low-Commission Agents

Here are some lesser-known risks of the low-commission model.

Less Care: When you pay less, you get what you pay for. This goes for low-commission agents too, they’re trying to make less from the sale, so you don’t factor into the process. This means less service and much less care, but a fast sale.  

Lower Profits: When a real estate agent cares about making a sale, and not the price, you may not get a fair price for your home, which means you lose out on profits overall. This can be frustrating and is why many people opt for the traditional real estate model. 

Dual Agency Fraud: This is when one agent represents the buyer and the seller and this is technically not illegal but is frowned upon as it comes with an inherent conflict of interest. Unfortunately, low-commission agents do this often, and this is how they increase turnover. 

What To Do Instead?

If you want the best real estate services and leading property management services, you’re going to want to find someone who offers a fair price that’s worth it, not the lowest price. 

For the agents that are worth the commission and more, Established Property should be your choice for the Point Cook Area, their expert team and experience in the area means a great selling experience, every time. 

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