3 Ways to Increase Your Real Estate Commission Without Doing Any Extra Work

Real Estate Agents

October 12, 2023

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This blog is where to find articles on real estate, renovations & projects. For more info about Kristen and Wealth House, check out the
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I'm Kristen Jackson

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Have you ever thought about ways to increase your commission? As real estate agents, we know how important commissions are and that it’s usually the first point of negotiation when engaging with a vendor. And with prices in the millions for many Australian properties, the difference of just 0.2% can mean thousands of dollars.

So what if there were some strategic ways to increase your commission – without doing a lot of work. This isn’t about working harder; it’s about working smarter.

In this blog post, I’ll delve into three proven ways to elevate your real estate commission game, each tailored to the unique nuances of the Australian market.

So, why should you bother exploring these strategies? Beyond the obvious financial perks, it can set you apart in a competitive landscape. It’s about leveraging your expertise to its full potential and ensuring that your hard work translates into a more substantial reward.

Grab your notepads, because I’m about to unlock the secrets to increasing your real estate commission without adding a single item to your to-do list. Let’s dive in!

1. Negotiate a Higher Commission Percentage

Photo of Kristen sitting at the desk in the Sandringham NSW pre-sale renovation

The most obvious way to increase your commission is to increase the commission rate.

For example, on a $1 million property at 1.8% commission you would make $18,000 vs. a 2% commission at $20,000. Sure, that’s only $2000 more, however if you’re able to negotiate this percentage on all your sales this year, that can add up to quite a bit more money.

Here’s my tip for negotiating a higher commission:

Show your value.

The reason that most agents charge the same percentage as everyone else in their market is that the vendor sees them as the same as every other agent in the market. Therefore, they are making their decision based on the price.

However, if they were to see you as providing more value, at some point the price becomes irrelevant.

Essentially they will view you as the one who can achieve their desired result, specific to them (they feel seen). And people will pay more.

There are many ways that you can add value to your service, and I recommend reading the book $100M Offers by Alex Hormozi to help craft your unique offer.

Here are some ideas:

  • Include all the marketing costs in your commission
  • Add additional marketing features like video and drone photography
  • Consider all aspects of the selling process. How can you make it easier for the vendor?
  • Consider all purchases vendors may be making in the selling process (like storage, moving services, moving boxes). Can you partner with businesses to provide free or discounted products or services?
  • Choose a niche or communicate to the vendor how you have helped a very similar vendor achieve their ideal outcome (such as a downsizer)

There are so many ideas of ways you can provide value to a vendor. And by not only addressing every problem they may face before, during & after the transaction but also customizing it to your business, you can stand out from all the other real estate agents.

When you stand out, you can ask for more.

2. Offer a Tiered Commission Rate

Image of the main bedroom of our Sandringham NSW pre-sale renovation

A tiered commission rate can be a great option, especially if you have a vendor that’s very resistant to a higher commission.

If you don’t know, a tiered commission rate works by offering a certain percentage up to a defined sales price. Then, you can have a different percentage for any number above that or a bonus structure.

Here’s an example:

  • 1.8% for a sales price up to $1 million
  • 1.9% for a sales price exceeding $1 million (and 10% bonus on anything over $1.1 million)

This is a very basic example and you can negotiate as many tiers as you want. Basically, the idea is that it will incentivize the agent to achieve the highest sales price possible. In the above example, it could mean the difference of an $18,000 commission (sale price of $1 million) vs. $32,800 (sale price of $1.2 million).

3. Add Value to Get a Higher Sales Price

The renovated bathroom in our Sandringham NSW pre-sale renovation
New bathroom in the Sandringham NSW pre-sale renovation

The final tip is an often overlooked strategy that can dramatically increase your commission.

Rather than listing the home as-is, it’s worth considering whether there are some strategic updates that can be done that will command a higher sales price, as well as to attract more buyers so you can have a bidding war.

Typically, curb appeal, updated kitchens and bathrooms, and new flooring will see the best return on investment. However, there are many things that can done to add value.

It may be worth consulting with a professional styling company or pre-sale renovation specialist to determine what projects are worth doing. After all, it’s not helping the vendor if they are going to go to the trouble to do work and not see a return on their money.

A pre-sale renovation company like Wealth House even offers a renovate now, pay at settlement program and full service design & project management so vendors don’t have to worry about having the cash on hand or all the difficulties that come with managing renovations.

I’ve been running case studies for properties in the Sydney area and have seen as much as a $2 million increase in value for a Fairlight unit with a harbour view. The real estate agent could potentially make $36,000 more just for making an introduction and waiting roughly 3 months for renovations to be completed.

Plus, if you combine it with some of the above strategies, you can dramatically increase your commission on this sale and any future listings for properties that aren’t quite a 10/10 and have the potential to get there.


The strategies to increase your commission aren’t difficult, yet many real estate agents haven’t thought through them.

This article has shown you that by negotiating a higher commission percentage, offering a tiered commission rate and adding value to the property, you can easily increase your commission.

And, if you are able do all 3 for all your listings, you’ll be a truly unstoppable real estate agent.

If you want to learn more about how Wealth House can add value to your client’s property (without you doing any extra work!), schedule a free consultation here.

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Increase your commission with proven strategies for Australian real estate agents, all without doing a lot of work. Learn how in this blog post.

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