Located in Australia's southeast, the Australian Capital Territory (ACT) is home to a stable housing market, steady employment and rapid population growth. It's the most densely populated Australian state, as over 400,000 people reside in Canberra, the state's only city.
Real estate agent fees and commissions in the ACT have fluctuated slightly over the last two years, with commission rates sitting in the middle in comparison to the rest of Australia. Interestingly, most of Canberra's population works directly or indirectly for the government, so the ACT's real estate industry is closely linked to the staffing policies of the elected government.
In the ACT, real estate agent fees are deregulated, which means that agents are free to set up their own commission and fee structure. However, agent fees are driven by a few key factors:
The market's supply and demand is the main factor driving an agent's fee and commission structure. For example, real estate agents in regional areas usually charge a higher commission than agents in metro Canberra. This is because there is less market activity and fewer agents, which equals less competition when selling property.
In contrast, Canberra agents charge lower commission rates as there's greater competition. It's in an agent's best interest to offer competitive rates to win your business. Prices also generally increase closer to city areas, so agents charge a better price for properties with higher sale prices.
Depending on the region, suburb and property type, real estate agent fees can also differ significantly. Suppose you're trying to sell an unusual property. In that case, most agents will ask for a higher commission to compensate for the extra time and effort involved in the selling process and advertising such an exclusive property to a smaller set of potential buyers. On the other hand, a higher property value typically equals a higher commission.
Typically, you'll find that local agents have a lower commission rate at the beginning of their careers compared to experienced agents as they don't yet have the sales history or market knowledge. Before deciding on which real estate agent to choose, do your research via LocalAgentFinder to find a quality agent that has experience selling similar properties, comprehensive local knowledge of the property market and offers a reasonable commission.
Another important factor to consider is what exactly is included in the commission and fees. Typically, the commission is the actual percentage allocation of the total property sale, and fees are an additional cost. Real estate agents usually include their marketing, advertising, and administrative costs under "other fees." It's a good idea to learn more about your agent's fee structure before signing the agency agreement.
Regardless of how an agent sets up their fee and commission structure , every homeowner should feel comfortable negotiating the commission and fee rate with their agent.
The average commission rate in NSW is the third lowest in Australia at 2.01%, sitting above Australia's lowest average, South Australia at 1.94%, and Victoria at 2.0%. Over the past two years, the average commission rate in New South Wales has remained relatively flat. As mentioned, NSW's low rates compared to the rest of the country can be attributed to the higher levels of competition in inner-city Sydney and larger rural towns such as Newcastle. This is in comparison to smaller states like Tasmania and the Northern Territory, where they have fewer high-density areas and thus less competition
It's important to remember that not all agents include their marketing and advertising fees in their commission rate. Whatever way your agent chooses to charge their commissions and fees in New South Wales, make sure you know how to negotiate this if required. Many agents are willing to negotiate their fees and commissions.
In recent times, Canberra has become a popular focus for both investors and owner-occupiers. In fact, Canberra is the only Australian city with house price growth over the last quarter. This could explain the drop in ACT agent commission rates over the last two years, as agents don't need to raise their commission in response to a slowing market. In Canberra specifically, homeowners are saving up to hundreds on commission rates compared to 2019.
ACT average commission rates vary significantly depending on where you're selling. There are more than 250 real estate agents across the ACT, and according to LocalAgentFinder, they charge an average commission rate of 2.17%. The average commission rate is higher in districts south of Canberra CBD, such as Chifley and Gordon, with commission rates sitting at 2.27% and 2.18%, respectively.
The table below illustrates how ACT real estate agent fees stack up compared to the rest of Australia. It's important to remember that rates can change over time, but this is the most accurate available average commission data in Australia. Keep in mind that what you end up paying will depend on your property, the local market and the selected agent.
In recent times, Canberra has become a popular focus for both investors and owner-occupiers. In fact, Canberra is the only Australian city with house price growth over the last quarter. This could explain the drop in ACT agent commission rates over the last two years, as agents don't need to raise their commission in response to a slowing market. In Canberra specifically, homeowners are saving up to hundreds on commission rates compared to 2019.
ACT average commission rates vary significantly depending on where you're selling. There are more than 250 real estate agents across the ACT, and according to LocalAgentFinder, they charge an average commission rate of 2.17%. The average commission rate is higher in districts south of Canberra CBD, such as Chifley and Gordon, with commission rates sitting at 2.27% and 2.18%, respectively.
The table below illustrates how ACT real estate agent fees stack up compared to the rest of Australia. It's important to remember that rates can change over time, but this is the most accurate available average commission data in Australia. Keep in mind that what you end up paying will depend on your property, the local market and the selected agent.
trained customer assistance team have expert knowledge of the ACT property market. They continually analyse the most relevant and up-to-date data available to ensure they recommend the most suitable agents for your unique selling situation. With that in mind, here are some things we've learnt along the way to help you with your property sale:
Selling your home or investment property in the ACT can be a challenge, but with the right help and tools, we're confident you'll succeed in securing the best possible sale price with the best possible agent.
Here are some fun facts about LocalAgentFinder to further understand how we work:
Your ability to negotiate fees and commissions will depend on your location (whether you’re closer to the CBD or further out). We understand that you may have questions about how commission works, and you shouldn’t be afraid to ask them. For example, you may ask questions like how effective is the commission-based model as an incentive for agents? Or will a commission-based structure ensure the best possible price for my property?
To negotiate fees and commissions with your potential real estate agent, it’s vital that you have the correct, up-to-date information and data to inform your bottom line and fully understand the process of how commissions and fees are calculated.
Fortunately, we’ve supplied you with the updated information right here. Our expert team have analysed the relevant data and calculated the averages to help you determine what you’re willing to pay in commission and fees. While this information is helpful, we encourage you to consider it as a guide only.
It's also important to remember that commission and fees depend on several other circumstances, like a property's size and current market conditions. To get exact commission rates for agents in your area, visit our comparison platform.
Knowing the agent's fees, commissions and performance in your suburb before you meet them puts you in a great position to negotiate. LocalAgentFinder's leading online comparison platform, selling guide and agent questionnaire gives you access to this information and much more.
Fixed-rate or fixed fee means you agree to pay a set, predetermined amount upon the sale of your property. Because it's a fixed fee, you pay the same amount, no matter the final sale price. This flat fee approach gives you certainty over the fee, but it can also sometimes cause fear that the agent will sell the house quickly, even if that results in a lower price.
The tiered percentage option operates on a sliding scale, and many believe this is a better option as it encourages agents to secure a higher sale price. For example, you may agree to a 2% commission rate if the sale price is $480,000 or less and an additional amount for a higher sale price. So, if the sale price is $500,000 you’ll pay 2% on first $480,000 (being $9,600) and, for example, 10% on the additional $20,000 (being $2000). The total commission payable would be $11,600.
Now, while some ACT real estate agents include advertising and marketing fees within their commission, most agents charge it as an additional cost. So you know what to expect, request a breakdown of these costs beforehand. However, remember that advertising and marketing costs vary widely, depending on the campaign and your property's location. For example, if your property is listed for $500,000, budget $2000 to $5000 for marketing and advertising.
Experienced real estate agents will create a print and digital marketing campaign that expertly targets your key buyer demographic. The more prospective buyers that know about the property sale, the likelihood you'll sell for the highest price possible. The marketing and advertising costs should include the following:
Most real estate agents will charge auctioneer fees on top of commission. This is the service fee for registered auctioneers on auction day. Ask your agent for recommendations on an auctioneer who will use their skills to get you the highest possible selling price. A Western Australian auctioneer can cost between $200 and $1000.
Home staging services include preparing your home for inspections, a professional photo shoot and auction day. It may involve simple styling tips or furnishing the entire property for the selling campaign's duration.
A good agent can either give you home staging advice themselves, generally as part of their commission, or connect you with local professional home stagers.
Home staging costs range from $2000 to $8000 depending on the level of service, property size and the campaign's duration. We recommend getting tips from your real estate agent as a first step and hiring a professional based on their recommendation.
Here are some other fees to consider when your property sells: