Selling in Melbourne: How to Choose an Agent and Avoid the Underquoting Trap
Selling in Melbourne? Melbourne is where vendor advocacy is most established in Australia, and for good reason. It's an auction-driven, highly competitive market where pricing strategy and agent choice make a significant difference to the result.
What Melbourne agents charge
Melbourne commission typically ranges from around 1.6% to 2.5%, compared with roughly 2.5% to 3.5% in regional Victoria. Melbourne's rates are among the lowest in the country because of the number of agents competing for listings.
Marketing, known as vendor-paid advertising (VPA), is separate. Commission must be disclosed in both percentage and dollar terms in the Sales Authority, and doesn't include VPA. Two rules worth knowing: agents must pass on any advertising rebates or discounts to you, and any commission-sharing with another party must be disclosed before you sign.
Understand Victoria's underquoting laws
Victoria has Australia's strictest pricing rules, and understanding them helps you as a seller, not just buyers.
Agents must give you an estimate of your property's selling price, must not advertise below it, and the estimate must be reasonable and take into account three comparable sales listed on the Statement of Information. If the estimated selling price changes, the agent must tell you and update the sales authority.
Why this matters to you: the estimate an agent writes into your authority is a formal, accountable figure. Compare it with what they told you verbally at the appraisal. If an agent's pitch was high but the written estimate is noticeably lower, that tells you a lot.
The rules have recently tightened. In November 2025 the government announced updated guidelines requiring agents to use the most appropriate local comparables, after a taskforce found agents selecting properties that differed greatly in age, size, location or school zone. Ask every agent which three comparables they'd use for your property, and why.
How to choose the right Melbourne agent
Ask about auction performance specifically: clearance rates, how often they sell before auction, and how often properties pass in. Ask what their reserve-setting process looks like and when they'll give you a frank recommendation on price.
Be sceptical of agents who propose a very high marketing budget. A big VPA spend benefits the agent's profile as much as your sale. Ask what each line item achieves, and negotiate.
Finally, check the length of the exclusive authority and what happens if the property passes in. You want flexibility if the campaign isn't working.
Let us do the hard part
Our Agent Select Vendor's Advocate service appraises your property independently, shortlists Melbourne agents with strong results in your suburb and property type, runs the interviews with you and negotiates commission, VPA and authority terms. There's no fee to you; the chosen agent pays us a referral fee, disclosed in writing before you sign. For support through the campaign and auction, Sale Managed is a flat $3,500.
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