Tasmania, known colloquially as Tassie, is Australia's only island state. The whole state encompasses the main island of Tasmania (the world's 26th largest island) and the 334 surrounding islands. With a population of half a million people, the majority of Tasmanians live in Hobart, Launceston, Devonport, Burnie and Ulverstone. In recent years tourism and investment have soared in Hobart, Tasmania's capital and most populous city.
In the real estate industry, it's unsurprising that the property market is rising. Over the last 12 months, Hobart house prices have increased by 3.4%, which is a testament to the property for sale and tourism in the state's capital city.
Tasmania has some of Australia's highest commission fees. So if you're thinking of selling your property, it's now more important than ever to understand how commissions and fees work. Tasmania's real estate commission and service fee structure is deregulated. Deregulated fees give the agent the authority to set the price of their commission and fee structure in the way they choose. A few key factors drive real estate agent fees in Tasmania:
Essentially, an agent will create their commission rate based on supply and demand. For example, when more agents are working in a certain area (like metropolitan areas), you can expect lower commission rates as agents compete for your business. On the flip side, the lower the activity in the property market (like in rural areas), the higher the fee will be. The lack of competition and lower selling prices allows the agent to set a higher commission.
A real estate agent's fees can also differ significantly depending on the region, suburb and property type. Most agents will ask for a higher commission if you're attempting to sell an unusual property. This is 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. Alternatively, if you want to sell a property with a big price tag, expect a big commission.
You'll find that newer Tasmanian real estate agents may have a lower commission rate 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 ticks these three main boxes:
Knowing the average commission rate for your state is a great guide for what you should be paying. However, it's also worthwhile getting a solid understanding of what is included in your commission and fee structure and what falls under each category:
Because Tasmanian commission rates are among Australia's highest, we recommend having an open conversation with your real estate agent and seeking full clarity on what costs fall under each term. This way, you'll be able to make an informed decision on what you feel is a fair commission and fee rate for selling your property.
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.
LocalAgentFinder research indicates that Tasmania has Australia's highest real estate agent fees, with the overall average commission rate sitting at 2.71%. This higher rate reflects the low level of competition amongst real estate agents. The below information shows how Tasmania compares to the rest of the country.
LocalAgentFinder research indicates that Tasmania has Australia's highest real estate agent fees, with the overall average commission rate sitting at 2.71%. This higher rate reflects the low level of competition amongst real estate agents. The below information shows how Tasmania compares to the rest of the country.
At LocalAgentFinder , we make it our business to understand real estate trends to give you the most relevant information possible. We analyse data daily to find the most suitable real estate agent for thousands of Australian home sellers every month.
We've learnt some things over the years that may help you when you begin looking for the right real estate agent to sell your home.
We know the current agent fees in Tasmania are less than attractive when compared to the rest of the country. But with the right agent, you're more likely to come to agreeable terms. LocalAgentFinder helps Tasmanian home sellers like you every day.
Here’s some more information about how we work:
Finally, don't rely solely on commission rates to make your decision. Remember to consider other important factors like your agent's personality, history and passion for selling your property.
Yes, you can negotiate commissions and real estate fees in Tasmania. Negotiations can be a tough time, and that’s why it’s essential to have as much information as possible so you're in the strongest position to negotiate.
In a property market like Tasmania's, your commission's final cost will depend heavily on location, location, location. For example, we know that Hobart has a more competitive market compared to regional areas, meaning you’re likely to pay a lower commission rate.
Knowing a real estate agent's service fee rate, commission structure, and previous local performance 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 local agents, follow these tips for effectively negotiating real estate fees and choosing the right agent to sell your property.
A fixed-rate or fixed fee commission rate means a home seller agrees to pay a set, predetermined amount to their real estate agent after their property sells. As the rate is fixed, you pay the same amount, no matter the final sale price. This method offers peace of mind as you pay the same fee regardless. However, the potential disadvantage is the fear that the agent will sell the property quickly, even if that results in a lower price.
The tiered percentage option works on a sliding scale, which encourages agents to secure a better 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 selling 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.
Most agents charge advertising and marketing fees as an additional cost. So you know what to expect, request a breakdown of these costs beforehand. However, remember that marketing and advertising 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.
Experienced real estate agents will create a print and digital marketing campaign that expertly targets prospective buyers. The more potential buyers that know your property is for sale, the better. Marketing and advertising costs should include:
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: