Agent commissions in NSW surprisingly low

Agent commissions in NSW surprisingly low


Property
Real estate agent commission rates in NSW are believed to be around 1.5 to 1.6pc in Sydney and from 2.8 to 3.4pc in regional areas.

Real estate agent commission rates in NSW are believed to be around 1.5 to 1.6pc in Sydney and from 2.8 to 3.4pc in regional areas.

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If you are selling property in NSW, the commission you pay your agent will be among the lowest in Australia.

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If you are selling property in NSW, the commission you pay your agent will be among the lowest in Australia.

But there is a disparity between metropolitan areas and regional areas, with commissions averaging at least half a per cent higher in the bush.

A survey by the website LocalAgentFinder.com.au found the national average commission was 2.07 per cent in metropolitan areas compared with 2.54pc in regional areas.

Though not cited in the report, the figures for NSW are believed to be around 1.5 to 1.6pc in Sydney and from 2.8 to 3.4pc in regional areas.

South Australia had the lowest commission at an average of 2pc, with NSW and Victoria next lowest at 2.05pc, followed by Western Australia at2.32pc, Queensland on 2.61pc and Tasmania, 3pc.

Gone are the days when vendors think negatively about commissions. - Matt McCann

Chief executive of the website, Matt McCann, said the average commissions in NSW and Victoria were indicative of the robust markets in those states.

He said the higher average commission in Queensland could be because, prior to commissions being deregulated in that state they had been capped, so the higher average could be carrying on as an effect of that.

The fact property prices in Queensland were slightly lower on average than the rest of Australia was another factor.

However, lower agents’ fees were not necessarily the main factor driving vendors’ selection of an agent Mr McCann said.

He said that for the majority of vendors using the organisation’s platform to select an agent, the final decision came down to an agent’s local knowledge and expertise.

“In fact three quarters of vendors rate an agent’s ability to get the best outcome as the number one factor when choosing an agent when they register on the platform,” he said.

This indicated that agents should focus on demonstrating how they would achieve the best price for the vendor’s property, based on their experience in the area from recent sales success, rather than through cutting commissions.

When comparing a fixed percentage rate or a tiered rate vendors were favouring a tiered percentage model to encourage agents to secure a higher price for their property.

“Gone are the days when vendors think negatively about commissions.

“They know that an agent will be motivated to secure the highest price for a property regardless and they understand a tiered commission structure is one tactic that may encourage their agents towards this.”

Mr McCann said that vendors generally understood that a lot of time and work went into selling a property.

“They know that they might be paying their agent a little more through a tiered percentage model, but their agent may have achieved them an extra $50,000 to $100,000”.

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