Updated October 2026
Contract for Sales Seller’s Most Asked Questions Article 7
Choosing the right real estate agent is an important decision when selling property in NSW. A capable agent can help with pricing, marketing, buyer enquiries and negotiations, but no agent can guarantee a particular price or sale date. The strongest choice combines relevant experience, clear communication and a realistic strategy. Before signing, compare proposals, verify credentials and understand the agency agreement. Your solicitor should also review the legal arrangements for the sale.
1 Compare recent sales and local experience
Experience and local market knowledge are valuable qualities in an agent. Ask for recent sales of properties similar to yours, including their condition, location, campaign length and final price. A record of selling large houses may be less relevant if you are selling a small strata apartment.
The NSW guide to choosing an agent recommends speaking with at least three agents. Ask each to explain the likely buyer group, competing listings and their proposed sales method. Check whether the results discussed were personally handled by the agent or achieved by other people in the agency. Use comparable evidence to assess their recommendations.
2 Verify licences and professional credentials
Use the free Service NSW property licence check to check the individual and relevant business credentials. Confirm that the licence is current and appropriate for the work. Review the compliance section for recorded enforcement or disciplinary action, rather than relying solely on an agency logo or business card.
Ask about professional indemnity insurance and who will supervise the sale. Membership of an industry body such as REINSW can be useful background information, but it does not replace the required licence. A clean register entry also does not guarantee the quality of a future campaign. Combine the checks with references and a detailed discussion of the service.
3 Test the proposed selling price
Do not choose an agent simply because they give the highest appraisal. Ask for the evidence behind the figure, including recent comparable sales and adjustments for your property’s features. An appraisal is an estimate, not a promise that a buyer will pay that amount.
Under the current NSW underquoting guidance, an agent must include a reasonable estimated selling price in the agency agreement and provide supporting evidence. If expressed as a range, the upper figure cannot exceed the lower figure by more than 10%. The estimate must be revised when it is no longer reasonable. Ask how buyer feedback will be recorded and communicated.
4 Assess communication and compatibility
Choose an agent who listens to your priorities and explains their advice clearly. Tell them about relocation plans, settlement requirements or other timing constraints. Establish who will conduct inspections, negotiate offers and contact you with updates. The person delivering the initial presentation may not handle every part of the campaign.
Agree on a reporting schedule and ask what information you will receive about enquiries, inspections and offers. Discuss how the strategy will be reviewed if interest is weak. Prompt, specific answers during the selection process can help you assess whether the working relationship will suit you.
Find out how many campaigns the agent is handling and who covers their absences. Ask whether someone will be available when an urgent offer arrives. Clear arrangements are particularly useful if you live interstate or need to coordinate instructions with another owner. Record the agreed contact arrangements with your campaign notes.
5 Examine the marketing strategy
A good marketing plan should suit the property and likely buyers. Ask the agent to explain the purpose and cost of online listings, photography, floor plans, social media, print advertising and inspections. You do not need every available advertising product simply because it appears in a package.
Request examples of previous campaigns and agree which expenses require your approval. The NSW advertising guidelines require agents to avoid misleading photographs and descriptions. Professional presentation should accurately show the property. If it is tenanted, ask how photography, inspections and any required tenant consent will be managed.
6 Compare fees and commission carefully
Agent commissions, fees and expenses are negotiable. Request a written breakdown showing commission, GST, advertising, auctioneer charges and any other costs. Ask when each amount becomes payable and what you will owe if the property does not sell. A low commission may be accompanied by substantial additional charges.
Compare proposals using the same assumed sale price and marketing scope. Ask how any incentive commission works and calculate the total before agreeing. Consider the service and likely net proceeds alongside the price. The NSW agency agreement guide explains fees, appointment types and potential commission liabilities.
7 Read the agency agreement before signing
Check the appointment period, services, authority, termination requirements and commission triggers. An exclusive agency agreement may require commission even if you find the buyer yourself. Changing agents without properly ending the first appointment can expose you to competing commission claims, including where an earlier agent introduced the eventual buyer. Obtain advice before signing overlapping agreements.
For residential or rural sales, the agency agreement’s cooling-off period ordinarily ends at 5 pm on the next day that is a business day or Saturday, excluding public and bank holidays. Signing on Friday can therefore mean a Saturday deadline. This differs from a purchaser’s cooling-off rights under a sale contract. Extensions and valid waivers can affect the position; cancellation requires written notice.
8 Check references and potential conflicts
Read reviews critically and ask for references from sellers with comparable properties. Ask those sellers about communication, unexpected expenses and how the agent handled difficult negotiations. A friend’s recommendation is a useful starting point, but it should not replace your own checks.
The NSW rules of conduct require agents to address conflicts of interest and act in their clients’ best interests. Ask about referral relationships or financial interests relevant to the sale. Obtain independent legal advice if the agent, a relative or a connected company proposes buying your property.
A real NSW case about an agent’s conflicting interests
In Pedersen v Larcombe (2008), an elderly owner engaged his real estate agent to sell a Manly duplex for the best available price. The agent did not properly advertise or market it. A company he controlled bought the property for $880,200 in 2006 and resold it for $1.935 million the following year.
The NSW Supreme Court found that the agent had put his own interests ahead of his duty of loyalty to the seller. His company knowingly participated in the breach. The seller was entitled to elect between an account of the company’s profits and equitable compensation; further orders and costs remained to be addressed.
The lesson is to examine the proposed price, marketing process and any connection between the agent and buyer. A familiar agent or an apparently convenient private transaction does not remove the need for independent advice.
What recent enforcement figures show
In a release dated 4 September 2026, NSW Fair Trading reported almost 80 open-home inspections over the preceding two months. The operation resulted in 10 agents receiving fines totalling $20,900, alongside five warnings and 16 education directives. These were targeted inspection results, not a measure of misconduct across all agents or evidence that particular agents achieve higher prices.
The 2026 property law reforms are being introduced in stages. Some enforcement changes commenced on 29 June 2026. As at 19 October 2026, Fair Trading lists further underquoting changes, including Statements of Information, as awaiting a commencement date. Ask prospective agents how they keep their practices current.
Get advice before problems become expensive
If concerns arise, put them in writing and keep the agreement, appraisals, advertising, offers and correspondence. NSW Fair Trading offers a free property complaint service. A disappointing price alone does not establish negligence or an entitlement to recover the difference from an earlier appraisal.
Contact CM Lawyers for advice about an agency agreement, commission dispute or proposed property sale. Early review can help you understand your obligations before committing to a campaign or changing agents.
Key resources
- Using an agent or selling privately and property licence checks — NSW guidance on choosing an agent and checking credentials.
- Underquoting guidance — Current requirements for reasonable estimates, supporting evidence and price ranges.
- Property advertising guidelines — Accurate marketing and photography requirements.
- Agency agreement guide and agency agreement requirements — Fees, appointment terms, commission and cooling-off rights.
- Rules of conduct — Professional duties, conflicts and referrals.
- Pedersen v Larcombe (2008) — Official NSW Supreme Court judgment concerning an agent’s breach of fiduciary duty.
- Open homes on notice in latest underquoting blitz — NSW Government enforcement figures published 4 September 2026.
- Changes to property and stock agents laws — Official explanation of the staged 2026 reforms.
- Property complaints and enquiries — NSW Fair Trading’s complaint service.
