Commission Savings Case Study: $9,000 Kept

A strong sale price is only part of the result. What matters just as much is what remains in your pocket after commission, marketing and settlement costs are paid. This commission savings case study shows how a homeowner selling a $900,000 property could retain $9,000 more by choosing a 1.5% commission model rather than a traditional 2.5% rate.

That is money that could reduce the cost of the next purchase, strengthen a deposit, cover removalists and improvements, or simply stay with the family who earned it. The point is not to choose an agent on price alone. It is to understand exactly what you are paying for, and whether the fee reflects the service and outcome you need.

The commission comparison at a glance

For this example, assume a residential property sells for $900,000. A traditional agency charging 2.5% would receive $22,500 in commission. At a 1.5% commission, the agency fee is $13,500. The difference is $9,000.

| Sale price | Commission rate | Commission payable | | --- | ---: | ---: | | $900,000 | 2.5% | $22,500 | | $900,000 | 1.5% | $13,500 | | Saving | | $9,000 |

The calculation is straightforward, but the real decision deserves more thought. A lower commission only represents genuine value if the selling process still has the right strategy, exposure, buyer management and negotiation behind it. A cheap service that misses serious buyers or handles negotiations poorly can be expensive in a different way.

That is why the most useful comparison is not simply agent fee versus agent fee. It is fee, service, communication and likely net result together.

Commission savings case study: a $900,000 sale

Consider a homeowner preparing to sell a well-presented three-bedroom home. They want professional support but are uncomfortable with handing over more than $20,000 in commission before other sale costs are considered. They are also happy to be involved in the process and to show prospective buyers through their own home.

Under a traditional 2.5% commission arrangement, a $900,000 result creates a $22,500 commission bill. Under Harmony Properties' 1.5% model, the commission is $13,500. The homeowner saves $9,000, subject to the $3,000 minimum fee where applicable.

In this scenario, the seller is not left to manage the sale alone. The agency manages the selling strategy, campaign coordination, buyer enquiry, screening, inspection bookings, negotiation and the sale process through to the finish line. The homeowner takes on the personal part of opening their home for inspections.

For many sellers, that is a sensible trade-off. Nobody knows a home, its street and its day-to-day appeal quite like the person who lives there. A seller can point out the morning light in the kitchen, the quiet bedroom at the back of the house, or the local café they walk to each weekend. Meanwhile, an experienced agent can focus on the work that most directly influences the transaction: qualifying buyers, maintaining momentum and negotiating with clear heads.

The saving is real, but it is not a guaranteed sale outcome

This example is illustrative, not a promise of a particular result. Commission rates vary between agencies, suburbs and property types. A higher-fee agent may offer a service that suits a seller who cannot conduct inspections themselves. In other cases, a lower percentage may come with fewer inclusions, limited availability or less experienced negotiation.

The fair question is this: for your home and your circumstances, what service level do you need to sell confidently? If you can show the property and value regular communication, a seller-led inspection model can be a practical way to reduce costs without giving up professional representation.

Where the value comes from

A commission should reflect meaningful work, not just the fact that a property has changed hands. Sellers deserve a clear plan for attracting the right buyers, responding quickly to enquiries and protecting their position once offers begin.

At Harmony Properties, the model is built around giving homeowners full-service sales support while keeping commission at 1.5%. It is family owned, and that matters in the way the service is delivered: with heart, honesty, direct communication and proper effort from the first conversation to settlement.

The agency work remains substantial. A campaign needs positioning that makes buyers stop and pay attention. Enquiries need to be answered promptly, not left sitting overnight. Buyers should be screened so a seller is not spending every Saturday with people who are not financially ready or genuinely interested. When interest turns into an offer, the negotiation needs to be calm, informed and focused on the seller's goals.

Reducing commission does not mean reducing standards. It means removing the assumption that a seller must pay a premium percentage simply because that is what a large franchise office has traditionally charged.

Why seller-led inspections can work

Some owners immediately like the idea of showing their own property. Others worry that it will feel awkward or that they will say the wrong thing. Both reactions are understandable.

The best approach is structured, not improvised. The agency can arrange inspection times, confirm attendees and qualify the buyer before they arrive. The seller can then welcome visitors, let them experience the property and answer practical questions about living there. Afterward, buyer feedback, follow-up and negotiations return to the agent.

This arrangement will not suit everyone. If you are living interstate, managing a demanding work schedule, have tenants in place, or simply prefer not to meet buyers, a more traditional inspection arrangement may be worth considering. But for sellers who are available and comfortable being involved, it can be an efficient division of responsibilities.

It also creates a more personal experience. Buyers often respond well when they can hear directly from the owner about a home's strengths, without any hard sell. The agent remains the professional buffer when it is time to discuss price, conditions, cooling-off periods or competing interest.

Compare the whole selling proposition

Before appointing any agent, ask for the commission rate in dollars based on your expected sale price. A percentage can sound small until it is applied to a property worth hundreds of thousands of dollars.

Then ask what happens before, during and after the campaign. Who handles buyer calls? How are buyers screened? Who negotiates offers? What marketing is included or arranged? Are there upfront costs? How often will you receive an update? Clear answers are a sign of a service built on transparency rather than pressure.

It is also worth asking about the minimum fee. A percentage model with a minimum can be particularly relevant for lower-priced properties, while a 1.5% rate becomes increasingly valuable as the sale price rises. On a $600,000 sale, the difference between 2.5% and 1.5% is $6,000. On a $1.2 million sale, it is $12,000. The numbers are not a reason to overlook service, but they are too significant to ignore.

A seller should never have to guess when they will pay or be surprised by costs. A paid-on-sale model with no upfront costs can provide reassurance because the agency is rewarded when the property sells, not merely when the listing is signed.

A smarter question than “What commission do you charge?”

A better question is: “What will I receive for this fee, and what will I keep if we achieve the right result?” That shifts the conversation away from glossy promises and toward practical value.

For the homeowner in this example, $9,000 is not a minor discount. It is a meaningful saving achieved without stepping away from strategy, campaign management, buyer screening and negotiation support. The owner contributes time by showing the home, while the agency handles the commercial work that keeps a sale moving.

Your property, availability and comfort level will shape the right choice. But when commission is transparent and support is personal, selling well does not have to mean paying more than necessary. Talk to the family business you can trust, ask the direct questions, and make sure more of your sale proceeds stay where they belong: with you.