Phone Which Real Estate Agent on 1300665557
FOLLOW US ON

Real Estate Agent Costs You Should Be Aware Of

Selling your property ranks in the top ten most stressful events of your life. It can also be one of the most expensive too. That’s why it is essential that you enter into the selling process knowing what real estate agent fees and expenses you will need to pay. Here at Which Real Estate Agent, we have had years of experience helping sellers find the best agent for them, as well as being able to collect helpful information on what type of costs sellers need to be aware of. So we’ve used our knowledge to explain for you the usual types of commission rates and other costs you will need to pay, as well as give you an approximate cost of them.

Types of real estate agent fees

agent fee calculator

In Australia, there are two main types of fees that real estate agents charge. They are a commission rate where they will receive a percentage of the total sale price of your property or a fixed amount where upon sale you pay a lump sum which is not related to the sale price.

But there are primarily two types of commissions that your agent could use, a flat rate commission or tiered percentage commission rate. A flat rate commission means that you pay an agreed upon percentage of your property’s sale price to your agent. A tiered percentage rate means that you will pay your agent a certain percentage for the price achieved up to a certain price. Then if the sale price achieved is higher, you pay a different (usually higher) rate on the amount above it. Both flat and tiered commission rates have the advantage that your agent has an incentive to work towards selling your property at the highest price they can, as they will get more money.

A fixed amount fee charged by an agent is when you and your agent agree that they will receive a certain sum when your property sells. This fee remains the same regardless of how much your property actually sells for. This has the advantage that you will know exactly what you need to pay your agent, but some research shows that agents may push you to settle quickly and for a lower price because they have no vested interest achieving a higher price.

Real estate agent commission rates across Australia

The average commission rates in Australia to sell a house or unit range between 1.6% and 3.5%. However these rates vary between states and the location of the property within a state. Generally you will find that if your property is located in a metropolitan area, your agent will charge a lower commission because there is a lot of competition between agents and properties sell quickly so they always have commission coming in. Agents in regional areas tend to have a higher commission rate because properties take longer to sell, so require more work from the agent and there is less competition between agents as there are less of them.

australia-real-estate-agents

Summary agents fees by state

However in TAS and QLD commission rates are a bit trickier.

Additional expenses to be aware of when selling your property in Australia

As well as having to pay a real estate agent a commission or fee to sell your property, there are some other types of expenses which you will need to budget for. They are the costs of having a professional photographer photograph your home for marketing purposes, having a floor plan of your property professionally drawn up and advertising online and /or in traditional media such as newspapers or magazines and other advertising mediums.

  1. Having professional photographs taken of both the inside and outside of your property is an essential marketing tool. Not only can the photos be used to attract potential buyers online to actually visit your property, but they can also be used to help prompt the memory of buyers who have visited, as to what the key features of your property were. Photos can also be used in marketing images such as flyers or billboards and will cost you anywhere between $100 and $500.
  2. A professionally drawn floor plan can help potential buyers find their way through your property when visiting it and let them make notes on it as to where they could put their own furniture. It can also be placed with your online listing, allowing online property buyers to visualise the layout of your property and decide if it would suit them. The cost of a floor plan is about $100 to $200.
  3. Advertising your property and targeting potential buyers is of course essential to selling it. You have the choice of selling it using different mediums such as online using property websites, in traditional media such as magazines and newspapers and other forms of advertising such as flyers, billboards or databases. Using an online property marketing website will cost you between $500 and $5000, depending on where your property is located and the size of the ad. You may also wish to advertise in national and local newspapers. A print run of flyers to hand out at open homes, a billboard at the front of the property and email blasts to the agents database are also additional costs that may be incurred.

In conclusion, selling your property in Australia will cost you either on average between 2.06% and 3.25% in agent commissions or an agreed upon fixed fee not based on the sale price. Then you will need to pay for other expenses such as photography, a floor plan and for advertising.


Top property articles from respected commentators sent to your inbox once a week