In Australia, real estate agents earn a commission, typically ranging from 1% to 4% of your property’s sale price. These rates can differ by suburb and agent. While commission is the standard payment method in real estate, it’s important to consider not just the fee, but also the agent’s experience, track record, negotiation skills, and marketing strategy.
Asking about average commissions and what is fair for your property can help you make an informed decision when selecting an agent.
Commission rates are merely a small piece of the bigger real estate puzzle. Their strategic approach to marketing in the digital age is critical.
Typically, real estate agents may be open to discussing their fee structure. The two most common types of fee structures are fixed rate and tiered percentage.
Fixed Fee
A fixed rate or flat fee arrangement entails paying a predetermined dollar amount upon the sale of your property, irrespective of the final selling price. This approach provides clarity and predictability regarding costs.
Tiered Percentage
Tiered percentage operates on a sliding scale based on the final price achieved. This has the potential to encourage agents to secure a higher sale price, however, remember that the final price, and commission, is influenced by current market conditions. Please not – not all agents work with tiered percentage commissions.
Best advice – discuss the options with your agent and what you are most comfortable with.
What Are The Additional Cost Options?
Marketing your property once it’s on the market can be an additional cost. Most agents will guide and advise you on the best options and charges to present and market your property. Online listings with digital platforms [like The Fold – Real Estate!], styling, minor repairs, display signage, digital property showcase, social media: there’s a lot to consider.
Considering all these factors, and discussing options with a trusted real estate agent, should make the process of successfully selling you home easy and profitable.