The truth is that there are no standard real estate agent commissions for Australian property sales.
The market in Australia is deregulated, which means that agents can set their own fees based on supply and demand.
A small difference in percentage can mean thousands of
dollars, so it is vital that you search for an agent that offers you the best
overall deal.
Generally speaking, agents can charge either a fixed or
tiered commission rate, when selling your house that is based on the final sale
price.
·
Fixed Rate Fees
These fees are usually a percentage of the final dollar
value and are a pre-determined one off percentage, that is payable once the
property sells.
The commission is negotiable and is usually around 2-3%.
· Tiered Percentage Commission Rate
This is a specific percentage of the total sale price that
increases depending on the final sale of your property. The rate is agreed upon
before the sale and operates on a sliding scale, so that it encourages agents
to sell for a higher price.
Remember that fees are always negotiable and that GST is
payable on all commissions. Fees may not include advertising costs and legal
and conveyancing costs will be additional.
Pay special attention to your contract because in some
cases, you may still have to pay if the sale falls through before the
settlement (unconditional commission).
If your property is taking a long time to sell and you are
getting lower offers, you can ask the agents to renegotiate the commission on
this basis.
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Marlene Liontis
Thursday, 10 October 2019
