GOOD MORNING FROM ELITE AGENT 👋

TRUE OR FALSE?

In Spain, if a buyer pulls out of a signed property agreement, they automatically lose their deposit, but if the seller pulls out, they must pay double.
(Scroll to the bottom for the answer!)

In today’s edition of The Brief

• What if real estate paid people differently?

• Happy Mother’s Day: mum and daughter duos in real estate

• Four pre-auction offers trigger zoom sale

Today’s read time: 5 minutes, 10 seconds

New to The Brief? Join us for free 🤝

OPINION

Commission under scrutiny: who does it really work for?

Commission shapes almost everything about how real estate operates in Australia – who enters the industry, who survives, who earns, and ultimately how clients are served. But what would actually change if agents were paid differently? In this three-part series, Elite Agent Managing Editor Samantha McLean draws on her background in salaried tech sales, alongside academic research and industry data, to unpack a question the industry has long avoided: whether the commission model truly aligns agent behaviour with client outcomes.

The debate isn’t new. In 2008, economist Steven Levitt analysed more than 100,000 home sales and found agents achieved better results when selling their own properties than when selling for clients – holding out longer and securing higher prices.

While the industry has often leaned on the idea that “we do well when you do,” the economics behind that claim is more complicated. At the same time, commission isn’t just a pay structure – it’s tied to identity. Research in self-determination theory shows it reinforces autonomy and competence, helping explain why agents may reject higher-salaried roles. But that same structure creates a powerful filter.

With the ATO placing median agent income at $69,157, commission-only work doesn’t simply reward performance – it selects for those who can afford to stay long enough to succeed, shaping both who remains in the industry and how it is perceived over time.

What you'll learn in the full article:

• The Levitt study: Why agents sell their own homes for 3.7% more – and what it reveals about commission alignment

• The structural flaw: How real estate lacks the systems tech sales built decades ago

• The identity paradox: Why "salaried agent" feels like a demotion – and whether that has to be true

• The survivorship bias: The hidden financial filter that shapes who enters and who stays

This is Part 1 of a three-part series that follows the question wherever it leads – including into franchise models, portals, and what AI changes next.

Read the full article

ICYMI yesterday, we discussed the supply squeeze on the Gold Coast.

MOTHER’S DAY

Mother-daughter teams on working together

Two mother-daughter teams – one managing 500+ rentals, one in sales – are proving family can sharpen a real estate business. At Woodards Croydon, Sarah Steel says her mum Wendy was "probably tougher on her than anyone." At Ray White, Bianca Verheijen found "a whole new level of respect" for her mother's work.

MARKET

Investor lending hits decade-high as first buyers retreat

A $42 billion surge in investor borrowing over the past year is the fastest growth in a decade, per Reserve Bank data. Owner-occupier lending rose just 6.2%, and one Sydney broker says first home buyer applications dropped by a third after the March rate rise.

HOW IT SOLD

Four offers led to a Monday Zoom auction

Three weeks into a Darlinghurst campaign, Nick Papas had 81 inquiries, 41 inspections, and four buyers all wanting to make pre-auction offers. Rather than manage drawn-out negotiations, he brought the auction forward and ran it on Zoom – all participants online. The one-bedroom sold for $830,000, $80k above the vendor expectation, in 24 days.

A listing lasts weeks. The case study lasts forever. getailsa.com

CELEBRITY HOMES

Ex-husband buys Real Housewives star $8.4M villa

Alexia Nepola's divorce from Todd Nepola has taken an unexpected turn – he's just bought her a Miami Beach villa. The Real Housewives of Miami star's new home sits in the Ritz-Carlton Residences.

MOVERS + SHAKERS

Vern Fitzgerald joins Ideal Buyer's Agency

The former wine industry sales leader has partnered with his sister Jade to specialise in Brisbane's Bayside market, bringing his negotiation expertise to the buyer's side. More here.

Ray White Burwood doubles down with Blackburn launch

Directors Henry Lin, Hans Liu and Jichen Quan are expanding into Melbourne's east with a second office and a combined team of more than 30 staff. More here.

Success doesn’t rest on weekends! 
Get the latest on top agent and agency moves every Sunday with our weekly roundup in Movers & Shakers. Subscribe now.

AGENTS ON SOCIAL

A good agent is basically there for every property mood swing - from “just looking” to “we’ve emotionally moved in already.” 🏡😅

Seen an Agent On Social we should include? Let us know here (email link)

TRUE OR FALSE:

In Spain, if a buyer pulls out of a signed property agreement, they automatically lose their deposit, but if the seller pulls out, they must pay double.

And the answer is …

TRUE. In Spain, property deals come with a surprisingly brutal little rule baked in called arras penitenciales. Once a buyer puts down a deposit (often around 10%), the commitment becomes very real: if the buyer walks away, they lose the deposit - no arguments, no drama. But if the seller changes their mind, they don’t just refund it… they have to pay double. It’s written into the Spanish Civil Code, and the whole point is simple but effective: once you’ve signed, both sides are financially locked in.

Wishing you a productive day!

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