Worked Cost Examples and Checklists
How to choose a real estate agent: interview questions and a scoring checklist
A practical method for comparing selling agents in Australia, with questions to ask, how to test price estimates against comparable sales and a weighted scoring example.
Choose a selling agent on evidence, not the highest price estimate. Interview at least three agents who sell homes like yours in your area, ask each for a written proposal with commission, GST and an itemised marketing budget, and check their estimated selling price against comparable sales you have looked up yourself. Then score them on a few weighted criteria. In the example below, the agent with the lowest commission came second, and the one with the highest estimate came last once their estimate was tested against actual sales.
This guide belongs to the net sale proceeds worked example section. For how commission is regulated, see agent commission by state.
Step 1: build a shortlist
Look for agents who have recently sold similar homes nearby: same type (house, unit, townhouse), similar size and price band. Signboards, sold listings on property portals and your neighbours' experience all help. Before interviewing, check that each agent holds a current licence or registration on your state regulator's public register.
Step 2: do your own price homework
Find five or six sales from the past six months that are genuinely comparable. Note the price, land size, bedrooms, condition and date. Adjust roughly for differences. This gives you a range to test the agents against. Agents in every state must give you an estimated selling price, and in Victoria and New South Wales the rules on underquoting mean that estimate is also the basis of advertised price guides. See underquoting and price guides.
Step 3: questions to ask at the appraisal
About price
- Which sales did you use for your estimate, and how did you adjust them?
- What do you expect the first offer to be, and how long do similar homes take to sell?
About cost
- What is your commission in dollars at your estimated price, including GST?
- Is commission payable on settlement only?
- What does the marketing budget include, and when is it payable? Is it payable if the home does not sell?
- Do you receive any rebate or commission from the advertising or service providers you recommend?
About the agreement
- How long is the exclusive period and how do I end it?
- How long does the introduction clause run after the agreement ends?
- Who will actually run open homes and negotiate with buyers?
About method
- Auction, private treaty or expressions of interest, and why for this home?
- What would you change about the home before listing, and what would it cost?
Step 4: score the agents
An illustrative scoring for a $900,000 house, out of 5 on each criterion:
| Criterion | Weight | Agent A | Agent B | Agent C |
|---|---|---|---|---|
| Estimate supported by comparable sales | 30% | 4 | 5 | 2 |
| Recent results with similar homes | 25% | 4 | 4 | 3 |
| Total cost (commission plus marketing) | 20% | 5 | 3 | 3 |
| Agreement terms (period, marketing, termination) | 15% | 3 | 4 | 3 |
| Communication and plan | 10% | 3 | 4 | 5 |
Weighted score = sum of weight x score:
- A: 0.30 x 4 + 0.25 x 4 + 0.20 x 5 + 0.15 x 3 + 0.10 x 3 = 1.20 + 1.00 + 1.00 + 0.45 + 0.30 = 3.95
- B: 1.50 + 1.00 + 0.60 + 0.60 + 0.40 = 4.10
- C: 0.60 + 0.75 + 0.60 + 0.45 + 0.50 = 2.90
Agent A had the lowest fees; Agent C gave the highest estimate, $980,000, but could not support it with sales above $910,000. Agent B, slightly dearer, wins on these weights. Change the weights to suit what matters to you, but keep price evidence near the top.
Step 5: compare the costs in dollars
| Agent A | Agent B | Agent C | |
|---|---|---|---|
| Commission quoted | 1.8% + GST | 2.0% + GST | 2.3% + GST |
| Commission at $900,000 | $17,820 | $19,800 | $22,770 |
| Marketing | $5,000 | $6,800 | $8,500 |
| Total | $22,820 | $26,600 | $31,270 |
The difference between A and B is $3,780. If B's campaign and negotiating realistically add more than that to the price, B is the better choice; if not, A is. Enter each agent's figures into the selling costs calculator to compare net proceeds.
Warning signs
- An estimate well above every comparable sale, often called "buying the listing"
- Pressure to sign the agency agreement at the first meeting
- A long exclusive period combined with marketing that is payable upfront
- Reluctance to put the commission in dollars or itemise marketing
- No answer about who will actually run the campaign
The paperwork checklist
Use the selling costs checklist before signing. In short: commission rate and GST, when it is payable, itemised marketing and timing, exclusive period and termination, introduction clause, rebate disclosure, and the estimated selling price.
Frequently asked questions
Should I pick the agent with the highest estimate?
No. The estimate does not set the price; buyers do. A high estimate that the market does not support can lead to a long campaign and price cuts. Choose the agent whose estimate is best supported by sales.
How many agents should I interview?
At least three. More helps only if they genuinely sell homes like yours in your area.
Can I use more than one agent?
Under an exclusive agreement, no. Under a general or open listing, several agents can market the home and only the one who finds the buyer is paid. Open listings are less common for homes.
Can I check an agent's complaint history?
Licence registers show whether an agent is licensed, and some regulators publish disciplinary outcomes. See complaints about agents.
Official sources
- NSW Fair Trading — licence check and agency agreements
- Consumer Affairs Victoria — estate agent licence register and underquoting
- Queensland Office of Fair Trading — licence search for property agents
- Consumer and Business Services SA — land agent register
