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Selling Secrets

Why aren’t advertising costs included in the agency commission?

I often hear many sellers say that advertising costs should be included in the agency commission. On the surface this seems reasonable, however these costs have a significant effect on the agent’s income.

Here is an example from the agency and salespersons point of view:

For a $500,000 property, the total agency commission would be approximately $12,950. The salesperson receives approximately $2,933.74 net. The cost of advertising is usually split 50/50 between the agency and salesperson.

A middle of the range online advertising campaign costing approximately $3,250 for a $500,000 home means that both the salesperson and the agency would reduce their take home pay by $1,625 per sale. For the salesperson, this reduces their net income to only $1308.74. That is just not enough for most people to cover their daily expenses, household bills and put food on the table.


Most buyers come from internet advertising. Buyers don’t care which agency has the property listed. If they see the property they want they will buy it from any agency. Agency branding will not send buyers to your property.


A good salesperson is very critical selling success. A very good salesperson will recommend the best advertising approach and market the property that will attract the maximum number of buyers through the property. They will also research and consider current market conditions. A good salesperson will work for their client to negotiate the very best price from the buyer for you and the property.


Presentation is critical to the end result. Keep in mind that you are selling a high cost, high-end product. Properties with immaculate presentation tend to yield a commensurate price. Properties with poor presentation tend to sell at a lower price. You don’t need to spend a lot of money to have great presentation.


Pricing is critical to the number of buyers looking through your property. Avoid selecting an agent who tells you an unrealistically high price. You will be on the never-ending spiral of price reductions, agency changes and mounting marketing costs. Do your research and select a price that sounds realistic and you will sell the property within the reasonable time frame of up to 90 days.

Open Homes

Many buyers are time poor, so open homes on Saturday’s provide an excellent opportunity to house hunt. Doing open homes from a vendor’s point of view is often an inconvenience. However attracting buyers to the property is also very important if you want the property sold.
Our office policy is to continue doing open homes until the property is sold. We don’t want to miss any opportunity for a buyer to view the property. Ongoing open homes may be painful for sellers but a necessary part of marketing property, especially in a digital age.


If you choose not to spend money on advertising, your property will take a long time to sell and in a lot of cases when it does sell it will be at a very low price. Don’t skimp on an advertising campaign match it to market conditions. This will result in a great sale price within a reasonable selling time up to 90 days. A very good advertising campaign can be created for around the $1500.00 mark based on current charges by internet portals.

Important factors when listing your home for sale
  • Select an experienced salesperson with good track record
  • Set a realistic listing price for your property
  • Choose an advertising campaign suited to your property and budget
  • Invest time into your property’s presentation
  • Do as may open homes as possible
  • Don’t expect your property to sell immediately. Currently median priced homes in Brisbane are taking up to 90 days to sell. Homes prices higher than median could take longer to sell