The Northern Territory (NT) is the least populous of Australia's eight states and territories. House prices in Darwin have increased 9% over the past year. Optimists in the real estate industry believe the decreasing median sale price for property in Darwin and the Northern Territory will increase affordability and increase investment.
The average commission rate sits higher than all other Australian states and territories except for Tasmania and Queensland. This is to be expected when the Northern Territory's population is significantly lower, so there's less property for sale and less competition between real estate agents, allowing them to increase their rates.
In the Northern Territory, real estate agent commission rates and fees are deregulated. This gives local agents the authority to create the structure of their commissions and fees. The key factors driving an agent's commission rate include the following:
Supply and demand refer to the volume of agents operating in the area and the level of competition. The higher the volume of real estate agents working in a certain area, the lower the commission.
In contrast, because you'll find lower selling prices, decreased competition, fewer agents and slower market activity in regional areas expect to pay a higher commission rate.
Real estate agent fees can also differ significantly depending on the region, suburb and property type. If you're trying to sell an unusual property, most agents will ask for a higher commission rate to compensate for the extra time and effort involved in the selling process. On the other hand, higher property prices typically equal higher commissions.
A newer agent may offer a lower commission rate than an experienced agent as they still need to gain more first-hand selling experience and market knowledge. To find the best agent to sell your property , do your research via LocalAgentFinder to find the best real estate agent for you. You ideally want someone who has experience selling similar properties, has comprehensive local knowledge of the property market and offers a reasonable commission.
State average commission rates are a good guide for the estimated amount you should pay in fees and commissions when selling your property. In addition to the average costs of fees and commissions in the Northern Territory, it's advantageous to have a clear understanding of what each term means.
For example, fees usually refer to marketing and advertising costs and/or administrative fees. It's common practice for an agent to charge commission as the percentage allocation of the total sale price and for fees to be an additional cost.
What generally falls under commissions and fees can sometimes be a little unclear. We recommend having an open conversation with your real estate agent and seeking full clarity on what these terms mean and the expected deliverables.
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.
A lower level of competition amongst real estate agents affects Northern Territory commission and fee rates. The average commission rate currently sits at 2.49% and is the third-highest in Australia, behind Tasmania and Queensland. The below table shows how the NT commission rate compares to other states and territories across Australia.
A lower level of competition amongst real estate agents affects Northern Territory commission and fee rates. The average commission rate currently sits at 2.49% and is the third-highest in Australia, behind Tasmania and Queensland. The below table shows how the NT commission rate compares to other states and territories across Australia.
With years of experience in the real estate market, we’ve learnt a few things along the way.
When it comes to choosing the right real estate agent, every homeowner has different needs. Ensuring your real estate agent is the person for the job can be a little bit of a task, but that doesn't mean you need to spend precious time and energy finding them during this busy time.
LocalAgentFinder is a smart tool designed for busy people like you who need to find the right agent. Through our platform, you can easily view their sales history and independent advice from fellow homeowners. We source local agents based on your requirements, and you contact the most suitable agents.
We understand that commission fees will always be an important consideration for every homeowner, but we don't believe it should be the deciding factor. There are other essential factors to consider, such as an agent's local expertise, their proposed marketing plan and their reputation.
Ask your agent about their proposed marketing campaign for your property, as you'll want to have confidence in their ability and feel comfortable with their plans. Your agent should have a vast knowledge of the local market and experience with the best way to market your home to prospective buyers.
The good news is the best agent for the job may be easier to find than you think, thanks to LocalAgentFinder.
Here's some additional information about how we work to help you further understand LocalAgentFinder's mission.
Yes, negotiating fees is par for the course in the NT's real estate industry. We understand that the commission and fee structure can sometimes cause confusion. The best way to ensure you’re in a strong negotiating position that avoids the feeling of smoke and mirrors is to fully understand the different commission structures available, which we explain below. Generally, you'll find more competitive rates and flexibility with city-based real estate agents compared to their rural counterparts, where there's less competition.
Knowing the agent's fees, commissions and experience selling property in your local area before you meet them puts you in a great position to negotiate. LocalAgentFinder's leading online comparison platform, selling guide and agent questionnaires gives you access to this information and more.
Once you've done your research via LocalAgentFinder and have a shortlist of two to three real estate agents, follow these negotiating tips:
A fixed-rate or flat fee commission means you agree to pay a set, predetermined amount upon the sale of your property. Because the rate is fixed, you'll pay the same fee no matter the final selling price. Many people prefer this method because it offers peace of mind. However, a possible disadvantage is a fear the agent will opt for a quick sale, even if that results in a lower price.
The tiered percentage option works on a sliding scale, encouraging agents to secure a higher sale price. For example, you may agree to a 2% commission rate if your property's sale price is $480,000 or less and an additional amount for a higher price. So, if the sale price is $500,000 you’ll pay 2% on the 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.
This method's premier advantage is that it incentivises the agent to secure the best possible price. The potential disadvantage is that you may pay more in commission than you had initially anticipated. But this is a Catch-22 situation, as a higher commission means the highest price for your property.
Now, while some NT agents include marketing and advertising 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 value is $500,000, budget $2000 to $5000 for marketing and advertising.
Top agents will create a print and digital marketing campaign that expertly targets your key buyer demographic. The more prospective buyers that know your property is for sale, the likelihood you'll sell for the best 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 and can cost between $200 and $1000.
Here are some other selling costs to consider when selling your property: