Whatever they like. That’s the simple answer to the question, ‘what do real estate agents charge in Australia’? Real estate commissions are unregulated and technically a registered agent can charge whatever they can convince a seller to pay. That’s why, as a property owner, you should do your research so you can be discerning when you decide which agent is the right one to sell your home.
What’s normal when it comes to real estate agent commissions?
There is no ‘normal’ when it comes to commissions. It’s a jungle out there. But as a rule of thumb, commissions will usually vary from between 1.0% for a very basic non-personal service, up to 4% of the value of the property sold. Generally, agents will charge a higher percentage of commission for lower priced properties and the percentage will reduce as the price increases.
What about the new flat fee real estate agents like Purple Bricks?
We’ve all seen the ads about avoiding commissions, so is Purple Bricks the answer to paying the right amount when selling your home? Again, there’s no easy answer. There’s no doubt Purple Bricks is cheaper than a traditional agent but the downside is you have to pay up-front. It means agents may well be less motivated to get your home sold at the best possible price. And a really worrying sign is the company doesn’t reveal its conversion rate from listings to successful sales. In other words they may be good at signing up sellers, but not at selling their homes. You could be left with a big bill and a home that’s still for sale.
Can I negotiate my agent’s fees?
Competition in the real estate industry is fierce, and as homeowner you hold the item of value. Agents want your listing and the thousands of dollars of commission that comes with achieving the sale. If faced with the prospect of reducing their fees or you going elsewhere, agents will almost always choose keeping the listing and making a little less money. The problem is agents are master salesmen so pushing down their price can be difficult, confronting and awkward. And to really harness the power of competition and make sure you’re getting the best deal, you may have to face the hard sell several times over.
How do I make sure I’m getting the best agent at the best price?
To harness the power of competition, before you put your property on the market to buyers, put your listing on the market to agents, on negotiagent.com.au, Australia’s only real estate agent marketplace. You’ll get to see what features agents are offering, how well the present specific to your needs and their plan for getting your home sold at the highest possible price. And when it comes to fees, agents already know the competition’s fierce so they’ll put their best foot forward and there’s nothing stopping you from negotiating even further. Negotiagent allows you to remain anonymous until you’re comfortable. It levels the playing field when dealing with master negotiators, so you can be one yourself!