How to choose a real estate agent to sell your home in NSW

The short list that matters

The best agent for your home is the one with a strong recent record selling homes like yours, nearby, who gives you an evidence-based price, explains every cost in writing and communicates the way you want. The agency brand, the size of the signboard and the highest price quoted matter far less. Wherever you are in NSW, from a Sydney suburb to a country town, local knowledge counts for more than almost anything else, because homes and buyers change from one area to the next.

1. Start with local results

Look up recent sales in your suburb on realestate.com.au or Domain and note which agents sold them. You want someone who has sold homes like yours, in your area, recently. An agent who mainly sells new homes in Penrith may not be the right fit for a weatherboard cottage in Mount Victoria, and the reverse is also true.

2. Ask for an appraisal with evidence

Invite two or three agents to appraise your home. Each should give you a price range and the recent comparable sales behind it, and explain why your home sits above or below each one. Be wary of the highest figure if it comes with the least evidence. Overquoting to win a listing is one of the oldest tactics in real estate, and the price usually drops once the campaign starts. Read appraisal vs valuation for how a good appraisal is put together.

3. Check the licence

Every agent selling property in NSW must hold a licence or certificate of registration. You can check any agent for free on the NSW Government's Verify a licence service. It takes a minute and also shows whether a licence has conditions.

4. Compare the full cost

Ask each agent for their commission, the marketing budget and every other cost, in writing. Then compare the total, and weigh it against their results. Our article on real estate agent commission in NSW explains what is normal and how to negotiate.

5. Find out who you will actually deal with

In some agencies the person who appraises your home hands the campaign to someone else. Ask who will run the open homes, take buyers' calls, negotiate offers and keep you updated. Meet that person before you sign.

6. Ask how they will find your buyer

A good agent can tell you who is likely to buy your home and where they are coming from. Outside Sydney that might be families moving from the city for more space, retirees, commuters who need the train, or locals moving up. A specific plan, naming those buyers, beats a generic marketing package.

7. Test their communication

Notice how quickly they reply, whether they answer the question you asked, and whether they are straight with you about the weak points of your home. How an agent treats you before you sign is a good preview of how they will treat you during the campaign.

8. Read the agency agreement before you sign

In NSW the agreement sets out the commission, costs, the agency period and the agent's estimated selling price. Check how long it runs, what happens if you want to end it, and whether it is an exclusive agency. The agent must also give you the NSW Fair Trading guide to agency agreements. If anything is unclear, ask before signing.

How many agents should you talk to?

Two or three is usually enough. Fewer gives you nothing to compare, and many more becomes hard to keep straight. Give each one the same information about your home, ask each the same questions, and compare their answers side by side.

What about agent comparison sites?

Comparison and referral sites can be a quick way to find names, and many publish useful data on fees and sales. Know how they work: they are usually paid by the agent, often from the commission, when a sale happens through them. That does not make the agents they suggest worse. It is simply worth checking each agent's local results yourself, the same way you would for an agent you found on your own.

Red flags

• A price well above every other agent's, with little evidence behind it.
• Pressure to sign on the spot, or before you have seen the agreement.
• Vague answers about commission or marketing costs.
• No recent sales in your area, or reluctance to show you any.
• Criticising other agents instead of explaining their own approach.

Choosing an agent outside the big city

In regional NSW, from the Blue Mountains and the Central West to the coast and the New England, a few things matter more than in a typical Sydney suburb:

• Town-by-town knowledge. Towns a few kilometres apart can behave very differently. In the Blue Mountains, for example, prices and buyers in Leura, Hazelbrook and Glenbrook are not the same. Ask the agent which streets and which outlooks buyers pay more for in your area.
• Bushfire, flood and planning questions. Large parts of regional NSW are mapped bushfire prone or flood-affected, and some towns have heritage areas or mine subsidence districts. A good local agent will tell you what paperwork buyers will ask for before you list.
• Climate and presentation. In the colder parts of the state, such as the mountains and the tablelands, a cold, dark home inspects badly. An agent who knows the area will plan inspection times and heating around it.
• Where the buyers come from. Many regional buyers are moving from Sydney or another city. An agent who reaches them well, as well as local buyers, widens your market.

Want a second opinion first?

If you would like an honest view of your home's value before you interview agents, our free report comes with a call from Matt, our approved local agent, with no obligation. Then go into your agent interviews with our 21 questions to ask a real estate agent.