Explaining Real Estate Commission and Marketing Fees with Confidence.

Sellers may combine every cost into one large figure unless the difference is explained.

Commission

Commission pays for the agency’s service in managing the sale.

This may include:

• Property and market research

• Campaign planning

• Buyer identification

• Enquiry management

• Inspections

• Vendor communication

• Campaign reviews

• Offer management

• Negotiation

• Contract support

• Team involvement

• Responsibility for the transaction

Marketing fees

Marketing fees cover the products and services used to present and promote the property.

These may include:

• Photography

• Floor plans

• Video

• Copywriting

• Property portal advertising

• Social media advertising

• Signage

• Printed material

• Auction promotion

• Database campaigns

• Other property-specific activity

Keep the two conversations connected but distinct.

The seller should understand what they are paying the agency to do and what they are purchasing to market the property.

A marketing budget makes more sense after the seller understands the campaign.

Explain:

• Likely buyer groups

• How those buyers search

• What the property needs to communicate

• Which campaign materials are required

• Where the property should appear

• How enquiries will be managed

• Why each major item has been recommended

If you begin with a total figure and no explanation, the seller can judge only the cost.

When the strategy is clear, they can assess whether the recommended spending has a reasonable purpose.

Do not rely on a list of products and platform logos.

Explain what each item is expected to do.

For example:

• Photography: Present the home accurately and attract suitable buyers to the advertisement.

• Floor plan: Help buyers understand the layout, room connection and property size.

• Video: Show movement, scale, lifestyle and location features that still images may not explain.

• Property portals: Place the property where active buyers are searching.

• Social advertising: Reach selected buyer groups beyond people already searching on a portal.

• Signboard: Create local awareness and capture buyers moving through the area.

• Copywriting: Explain the property’s main points of difference clearly.

Avoid claiming that one item will guarantee extra offers or a higher price.

Its role is to support the overall campaign.

The seller should not have to calculate the costs themselves.

Provide a written summary showing:

• Commission structure

• Estimated commission at relevant example prices

• Marketing items

• Individual costs

• Optional items

• Total campaign cost

• When payments are due

• Treatment of GST

• Costs payable if the property does not sell

• Any withdrawal or cancellation costs

• Other charges that may apply

Check the figures before presenting them.

A calculation error in the proposal may cause the seller to question the accuracy of other information.

If the commission is percentage-based, show what it may look like at several possible sale prices.

Make it clear that the examples are calculations, not sale price promises.

For example:

“At a sale price of $X, the commission would be approximately $Y. At a sale price of $Z, it would be approximately $A.”

This helps the seller understand the likely amount more easily than a percentage alone.

Where a different commission structure is proposed, explain how it works in plain English and provide written examples. Ensure the structure is permitted, properly documented and approved through your agency.

Avoid saying only:

“My commission is two per cent.”

Explain the work behind it.

You might say:

“The commission covers the planning and management of the campaign, buyer follow-up, vendor communication, offer handling and negotiation through to the completed transaction. I will also remain your main point of contact throughout the sale.”

The explanation should match the service actually delivered.

If much of the campaign will be managed by associates or other departments, explain the team structure honestly.

Agents sometimes justify commission by claiming that their negotiation will add more than the fee difference to the sale price.

This may sound confident, but it is difficult to prove and can create an unrealistic promise.

Instead, explain:

• Your negotiation process

• How buyer interest is assessed

• How offers are confirmed

• How conditions are compared

• How competing buyers are managed

• How the seller remains involved in decisions

Show the process supporting your service rather than guaranteeing a particular financial outcome.

Do not criticise the other agent or immediately match the fee.

Ask:

“Have you had an opportunity to compare what is included in each service and who will personally manage the campaign?”

Useful points to compare include:

• Preparation

• Pricing evidence

• Marketing strategy

• Buyer follow-up

• Communication

• Reporting

• Inspection management

• Negotiation

• Team structure

• Relevant experience

A suitable response may be:

“I understand why the difference matters. My recommendation is that you compare the complete service, not only the percentage. I am happy to explain exactly what I will manage and what is included.”

The seller may still choose the cheaper agent. Remain professional.

Ask which items concern the seller and whether they are working within a set budget.

Then divide the plan into:

Essential

The items needed to present the property properly and support the recommended campaign.

Recommended

Additional activity likely to strengthen the campaign.

Optional

Items that may add value but could be changed if the budget requires it.

Do not remove important campaign elements simply to reduce the total figure without explaining the possible effect.

If a lower-cost option is available, show how the campaign would differ.

A standard package may be convenient for the agency, but it may not suit every home.

Marketing recommendations should consider:

• Property type

• Likely buyer

• Price range

• Location

• Property condition

• Sale method

• Campaign length

• Competition

• Seller’s timeframe

• Available budget

A one-bedroom apartment and a large acreage property may require very different presentation and advertising.

A tailored recommendation is easier to explain because every item has a reason.

Optional marketing can create confusion when it is not separated from the main recommendation.

For each optional item, explain:

• What it adds

• When it may be useful

• The cost

• Whether it can be added later

• Whether removing it changes the strategy

Avoid presenting an expensive option as essential if the campaign can work properly without it.

Clear choices help the seller control the budget without feeling that they are weakening the sale.

Your tone matters.

Avoid:

• Apologising for the fee

• Speaking too quickly

• Hiding the total

• Becoming defensive

• Criticising competitors

• Discounting before the seller asks

• Suggesting the seller is making a poor decision

• Pressuring them to approve immediately

Pause after presenting the costs and allow questions.

Ask:

“Would you like me to explain any part of the commission or marketing budget in more detail?”

A clear discussion is more professional than rushing past the subject.

Before the appraisal, understand:

• Your standard commission

• Any approved flexibility

• Minimum acceptable fee

• Which marketing items can be adjusted

• Agency policies

• Who can approve changes

• How changes must be recorded

Do not invent a discount during the meeting without understanding its effect.

If you agree to change a fee, confirm the final structure clearly in writing.

The seller should not find unexpected costs in the agency agreement.

Before signing, check that the document accurately reflects:

• Commission

• Marketing costs

• Payment timing

• Additional charges

• Approved variations

• GST treatment

• Any agreed conditions

Encourage the seller to read the documents and ask questions.

Confidence includes giving the client enough time to understand what they are signing.

Avoid:

• Combining commission and marketing without explanation

• Presenting costs before explaining the strategy

• Using the same marketing package for every property

• Hiding optional expenses

• Providing incorrect calculations

• Apologising for the fee

• Matching a competitor without comparing services

• Claiming your fee guarantees a higher price

• Failing to explain team involvement

• Leaving important costs until the agreement is signed

• Making verbal changes without recording them

Before the appraisal, check that you have:

• Confirmed the commission structure

• Calculated useful examples

• Prepared a complete marketing breakdown

• Checked GST treatment

• Separated essential and optional items

• Connected each cost with a clear purpose

• Understood your approved flexibility

• Prepared for common questions

• Checked all figures

During the discussion, check that you have:

• Explained the strategy first

• Separated commission from marketing

• Described what your service includes

• Avoided guarantees

• Allowed the seller to ask questions

• Compared services rather than attacking competitors

• Confirmed any changes in writing

• Ensured the agreement matches the discussion

Sellers do not expect real estate services to be free. They expect the costs to be clear and the value to be understandable.

When an agent explains commission and marketing fees calmly, accurately and without exaggeration, the conversation becomes part of building trust rather than something to avoid.