Key red flags include response times exceeding 24 hours, a lack of comparable sales in your suburb within the last 6–12 months, and non-itemised advertising costs. You should also be wary of price guides that do not reflect the reserve or agents who cannot provide a written Comparative Market Analysis (CMA).
Many vendors mistake a high appraisal for a competent strategy. In the current Melbourne market, the ability to generate genuine competition is more valuable than a flattering price estimate that lacks data grounding.
Responsiveness as a performance indicator
An agent who takes more than 24 hours to respond to your initial inquiry is a significant red flag. This delay usually signals how buyer inquiries will be managed during a campaign, where slow response times lead to lost momentum and missed offers.
Pricing strategies and underquoting
Price guides set 10–15% below eventual sale prices remain common in Melbourne’s inner and middle-ring suburbs, despite Consumer Affairs Victoria (CAV) regulations. It is a red flag if an agent cannot explain their pricing logic or if the guide does not reflect the reserve.
Transparency in commissions and VPA
Commission rates in metropolitan Melbourne are fully negotiable, averaging between 1.87% and 2.1% (OpenAgent, WhichRealEstateAgent). A red flag is any Sales Authority where Vendor-paid advertising (VPA) costs are not itemised or where the agent does not pass on portal rebates to the vendor.
The appraisal spread
You will likely receive different price ranges from the three agents you interview. This discrepancy is a standard market reality and doesn’t necessarily indicate a “wrong” number, but rather different interpretations of comparable data.
| Region/Category | Commission Rate (2026) |
|---|---|
| Metropolitan Melbourne (Average) | 1.87%–2.1% |
| Metropolitan Melbourne (Range) | 1.6%–2.5% |
| Inner City (e.g., Fitzroy) | 1.7%–1.9% |
| Regional Victoria | 2.5%–3.5% |
| Victorian Average | 2.05%–2.1% (OpenAgent, WhichRealEstateAgent) |
Frequently asked questions
How much should I budget for advertising in Melbourne?
A standard Melbourne campaign typically costs between $6,500 and $8,000, covering professional photography, portal listings, brochures, and signboards. Premium packages, including drone photography and 3D tours, range from $8,000 to $12,000. All these costs must be itemised in your Sales Authority.
Are real estate commission rates capped in Victoria?
No, commissions are not capped or regulated by Victorian law and are fully negotiable. Agents are legally required to disclose that the commission is negotiable before you sign the Sales Authority, and the fee must be stated as both a percentage and a dollar amount.
How can I tell if an agent is actually successful?
Review their sold listings on realestate.com.au and domain.com.au for properties in your suburb sold within the last 6–12 months. Check if properties sold at or above the guide, the average days on market, and whether there were frequent price reductions during the campaigns.
What happens if my property doesn’t sell at auction?
You should ask your agent for a written post-campaign strategy before signing the authority. This ensures there is a clear plan for managing the property if it passes in, rather than relying on ad-hoc decisions after the auction has failed to meet the reserve.
Questions to ask your agent
- How many properties have you sold in this specific suburb in the past 12 months, and how did you arrive at your price estimate for my home?
- Who is the primary point of contact for all buyer inquiries throughout the campaign—you personally, or an assistant?
- What is the specific termination clause in the Sales Authority if the marketing plan is not executed as proposed?
This article contains general market information based on data current as at April 2026. It does not constitute financial, legal, or real estate advice specific to your property or circumstances. For an appraisal and tailored advice, speak with a Fletchers agent in your area.