Selling your property can be a nerve racking experience, especially for the uninitiated! We can all agree on this.
Following this guide will give you an understanding of fees and commissions as they apply to Western Australia.
That is why we created this guide on the selling process in Western Australia and on real estate agent costs operating in Perth and surrounds.
Let us show you how.
Select Selling or Renting (in map) to show correct type of commission rate for your situation.
The figures shown are an average. Agents charge different amounts based on a range of factors including property, price and likelihood to sell.
As you may already know:
When it comes to selling your property, WA real estate agents charge a commission fee.
How much you pay varies on the agent and the location of your property. We have found that agents generally charge between 2.5% and 3.25% to sell a unit or house.
Our experience has shown us that agents on average charge around 2.44%, meaning that on the sale of a $500,000 property, you will need to pay $12,200 in commission.
Did you know?
Western Australia has the fourth highest agent commission rates in the country, behind QLD, NT and TAS.
You will find that agent fees are not regulated in WA.
This means that it is up to you to agree upon a percentage by entering into negotiations with your agent.
The Real Estate Institute of Western Australia (REIWA) does not make any recommendations to its registered agents on what fees to charge.
It could be seen as a breach of the Trade Practices Act.
REIWA suggests that prospective clients research and compare agents to get the best deal for themselves.
Use the real estate agent fee calculator below to determine how much it will cost to sell your property in WA.
Amounts calculated include 10% GST, but exclude other costs an agent may charge such as advertising and marketing.
Enter your property value and local agent fee percentage.
Here are some general guides to finding out about commission rates, but please note that what your local real estate agent will charge depends on a number of factors:
Your negotiation tactics: If you come armed with quotes and expense details from other agents in the area, you may score a desirable rate with your chosen agent.
There are also some other fees to be aware of when selling property in WA.
It is a great idea to advertise your property via online websites. In WA, the best websites to use are realestate.com.au and domain.com.au.
What’s the cost?
To list your property on these sites, you will find that the fees can vary from around $400 for a standard listing and up to $7,000 for a Premier listing on realestate.com.au in high-value suburbs such as Peppermint Grove.
Using print advertising can help reach more potential buyers, especially national newspapers like Perth Now and The West Australian.
Use local publications to help reach your target audience such as:
Needless to say:
The effectiveness and cost of ads will vary according to your property’s target demographic.
An advertisement in a local newspaper will generally cost less, around the $1,440 mark for a quarter page listing.
Try using alternative forms of advertising such as:
When preparing your property for sale, you need to remember that a prospective buyer will build a first impression on your property within seconds.
It is crucial that your property is clean, tidy and fresh smelling. It is also a great idea to have a professional floor plan designed, as well as have professional photographs taken.
Photographs say more than words. They give an accurate picture of what your property looks like both internally and externally.
Why engage a professional?
A professional photographer has the skills and experiences to take photographs that will encourage buyers to visit your property themselves.
Make sure that before a prospective buyer visits, you stage effective props such as a vase of flowers or a bottle of wine and glasses on the patio table to help paint a picture in the mind of viewers.
When preparing to sell your property, having a professionally drawn floor plan is recommended. The advantages of a floor plan is that it gives physical viewers something to remind them about your property features, as well as guides them through it when they visit.
Generally, there are 14 stages associated with purchasing and selling a property in WA.
The seller will need to have a Contract for Sale of Land by Offer and Acceptance and Joint Form of General Conditions for the Sale of Land prepared by their solicitor, conveyancer or real estate agent.
This is the time when an interested purchaser makes an offer on the property. The seller may accept the offer or decide to enter into negotiations over the price and terms of the sale.
A holding deposit is given to the seller by the purchaser as a way of showing genuine interest in buying the property.
It is generally non-refundable.
The fourth stage of the selling process is to put the property up for sale at an auction.
Before the auction, the purchaser has all their property inspections done and finances sorted. The seller’s solicitor or conveyancer should have inspected the sale contract to make sure that everything is in order.
There is usually a further fee for the purpose of:
Before the auction:
The seller needs to state the lowest price they would accept to sell their property. This is called the reserve price and the purchaser does not usually know the actual amount.
A word of caution:
If the bidding does not reach the reserve price, the property will either go back on to the market or the seller’s agent will try and negotiate a higher price to sell it.
When it comes to the fifth stage of exchanging contracts, in WA both the seller and purchaser sign one copy each, which the real estate agent usually exchanges. The deposit is about 5% of the agreed upon sale price of the property.
Before settlement occurs, purchasers may choose to insure their new property. Although the seller is legally responsible for any damage up until settlement, many purchasers choose to take insurance out earlier in order to reduce their risk. Full property insurance costs vary according to the size and location of the property.
Did you know?
In Western Australia, a cooling off period does not exist.
The eighth stage is when the property title transfer occurs. The purchaser’s solicitor or conveyancer needs to:
The stamp duty varies depending on the property value.
The purchaser’s solicitor or conveyancer then sends the transfer to the seller’s solicitor or conveyancer, which the seller then signs.
WA has an average time for completion of 4 to 6 weeks, although this is longer if the property is still under construction. It is confirmed or set between the seller and the purchaser at this stage.
But that’s not all:
Requisitions on title occurs when a list of formal questions is sent to the seller by the purchaser’s solicitor or conveyancer.
These questions are asked to help determine various factors such as:
The answers to questions can include information, which may not have been disclosed or even discovered during the inspection of the property.
If the answers are not satisfactory or according to the contract disclosures, then the purchaser has the opportunity to:
If revocation by purchaser or seller takes place, it cannot be done until a Default Notice has been issued to the other party who is given a minimum of 10 business days to remedy the default. The cost of this is usually included in the final settlement.
Requisitions are not used within Western Australia if the land is Torrens Title and the standard contract has been used.
But it doesn’t stop there!
The seller’s mortgagee needs to be contacted at this stage, a payout number obtained and the mortgagee should attend at settlement to hand over a discharge of mortgage as well as the certificate of title or title deed.
The twelfth stage of adjustments can mean that the purchaser is liable for more expenses.
This is mostly because the seller has paid in advance such bills as:
Settlement is when the title documents are exchanged for payment between the solicitors, mortgagees or conveyancers.
The sale is final:
When any adjustments are made and the purchaser pays the balance of the purchase price.
During settlement a final search of the title is also done to make sure that the property does not have any added interest or obstacles.
If the settlement does not occur within 3 business days of the scheduled date, then the purchaser is liable to pay interest to the seller.
This stage requires that the purchaser or purchaser’s mortgagee registers the transfer documents with the Land Titles Office.
This means that there will be:
The Land Titles Offices will then advise the relevant authorities that the property has a new owner.
If you are looking for further information on the selling process in WA, then visit the following websites:
On the REIWA website you can find information such as:
REIWA are agent advocators, but still provide information for the general public.
The Department of Commerce has articles regarding the process on selling properties, such as what to expect when selling and a property inspection checklist.
If you’d like an insider’s guide to selling your home, then you’re in for a treat.
It’s jam packed with useful information including:
Here is your insiders guide for download
One of our friendly, Australian agent comparison consultants will get in touch to see if we can assist further.