Home to 1.7 million people, South Australia, also known as the Festival State and Wine State, has around 75% of the state's population living in the capital, Adelaide. In recent years, South Australia has seen significant growth in the property market, especially in comparison to other states and territories. Investment opportunities, particularly around the Adelaide area, are looking good in SA. Recent upward trends show South Australia becoming popular with renters and buyers thanks to good affordability and low rental rates.
According to LocalAgentFinder research, the properties that buyers are seeking are those with good lifestyle benefits. Homes close to shopping districts, schools and public transport are in demand. In terms of lifestyle benefits, the Mediterranean and arid/semi-arid climate found in South Australia is attractive. The state also has the lowest commission rate and fees in Australia, and this means 2022 is a great year for you to sell.
Throughout South Australia, the fees and commission structure is deregulated. In short, deregulation means that agents are empowered to set the structure of how commissions and fees are charged. Several key factors drive what real estate agents charge when selling property, including:
An agent's fees will depend on supply and demand. The more agents that operate in a certain area, the lower the commission is likely to be. For example, you can expect a lower commission rate in high-density urban areas like Adelaide compared to rural towns, where fewer agents are competing for your business.
However, the final sale price of houses in Adelaide is typically greater than in other places in SA, so Adelaide agents can afford to charge a lower fee. Meanwhile, agents in rural towns charge a higher commission to compensate for the lower selling price and the decreased competition in the market.
In general, an agent will do their best to offer competitive rates to ensure they can get business. Commission rates are also usually a negotiable factor with your agent.
If your property is unusual or expensive, most agents will ask for a higher commission to compensate for the extra time and effort involved in marketing such an exclusive property.
Depending upon location and agency, newer real estate agents may have a lower commission rate compared to an experienced agent as they need the sales history and market knowledge (yet). Do your research via LocalAgentFinder to find a quality agent that has recent sales similar to your property, comprehensive local market knowledge and offers a reasonable commission.
It's a good idea to get an understanding of what other people in your area are paying in agent commissions and fees. While the average acts as a good guide, it's equally important to understand what exactly is included in the commission rate. Generally, an agent will charge a commission as a percentage fee of the total sale of your property, and fees will be an additional cost. This typically includes marketing costs and the auctioneer's fee
Clarity is best when dealing with the commission agents charge. It's always a good idea to be upfront and ask questions. Remember that your home is one of the most important and valuable assets you will sell in your lifetime. Speak to your agent and understand their costs to ensure you are getting the best possible deal for your personal circumstances.
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.
As noted, the average commission rate in South Australia is the lowest in the country, sitting at 1.94%. This strongly indicates the volume of real estate agents operating in the country and the growth of relocation to SA.
The below data looks at average commission rates across Australia's real estate industry, with SA having the lowest average commission rate compared to all other Australian states.
As mentioned, regional areas with slower property markets, higher prices and fewer real estate agents are often more likely to have higher real estate agent fees. Meanwhile, lower real estate fees are visible in city areas with lively property markets and higher competition among real estate agents. In the case of SA's capital Adelaide, the average commission rate in the capital is lower than Melbourne and Brisbane, sitting at 1.90%, but is slightly higher than Sydney's average.
While understanding average rates in SA helps you make an informed decision, it's not always wise to make commissions the central deciding factor when choosing an agent. Ideally, you want to find an experienced agent with a good commission rate, local knowledge, and recent sales similar to your property.
As noted, the average commission rate in South Australia is the lowest in the country, sitting at 1.94%. This strongly indicates the volume of real estate agents operating in the country and the growth of relocation to SA.
The below data looks at average commission rates across Australia's real estate industry, with SA having the lowest average commission rate compared to all other Australian states.
If you're selling your home in SA this year, you can look forward to negotiating what may be among some of the lowest commission rates in the country. Here are some things we've learnt along the way to assist you when selling your home.
We've done the hard work in terms of finding commission rate averages in your area to help act as a guide. But commission rates vary depending on a host of other factors, as mentioned above, so only use this as a guide. Sometimes expensive agents are worth the higher commission.
As a rule of thumb, it's a good idea to dig deeper when it comes to selling your property. This is particularly important regarding your agent's marketing campaign, as this will be a vital strategy used in selling your home. You should have every confidence in their ability to market your home to the right audience of prospective buyers.
While commission rates are important, they shouldn't be the deciding factor. You ideally want an agent with a great sales success rate, a good reputation and a wealth of local knowledge. Do a background check and research their work history via LocalAgentFinder to find the right real estate agent for you.
Speaking of LocalAgentFinder, use our free comparison service to compare several local agents that match what you're looking for.
With lower commission rates currently accessible across South Australia, you may want to start the search for your real estate agent sooner. The good news is the best agent for the job may be just around the corner. Here's some information about how we work to help you find the best real estate agent for you to sell your property in South Australia:
Getting the right information will help you make the best decision when it comes to choosing a licensed real estate agent to sell your home. Remember to take into account factors like their personality, sales history and the passion they have for selling your property so you get the best possible sale price.
Yes, you can negotiate real estate agent fees and commissions in SA. When it comes to negotiating fees and commissions in South Australia, rates are lower overall, and competition is strong, which puts you in a good negotiating position. In general, there are more competitive rates in city areas compared to regional areas with less competition, so agents can afford to structure a higher fee and commission approach.
Knowing the agent's service fee, commission structure and performance in your suburb before you meet them can make all the difference and put 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 local real estate agents, here are some tips for effectively negotiating fees and choosing the right agent to sell your property.
The terms fixed fee, flat rate or flat fee mean the same thing. You and your agent agree to a set predetermined rate, and you'll pay the same fee no matter the amount your property sold for. Although you know exactly what you’ll pay, the potential disadvantage of this commission method is that the agent may sell the house quickly, even if that results in a price lower than the property's worth.
The tiered percentage fee option works on a sliding scale and 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 if the property is sold for more. 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 $2,000). The total commission payable would be $11,600.
Some real estate agents include marketing fees within their commission, and some agents charge it as an additional cost. Request a breakdown of marketing costs from your agent beforehand so you know exactly what to expect. Marketing and advertising costs vary widely. For example, a $500,000 home may have an advertising budget of between $2000 and $5000.
The best real estate agent will create a print and digital marketing campaign that expertly targets your key buyer demographic. The more potential buyers who know your property is for sale, the likelihood you'll sell for the highest price possible. The marketing costs should include the following:
Similar to advertising costs, most real estate agents will charge auctioneer fees on top of the commission amount. 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 selling price possible. In SA, the average auctioneer fee is currently $400.
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 selling your property: