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Brisbane is Queensland's capital, and with its subtropical climate, laid-back lifestyle and buzzing city lifestyle - it is fast becoming home to many. One theory is the belief that people are choosing to leave expensive and crowded Sydney and Melbourne and relocate to laid-back Queensland. Some experts believe this laidback lifestyle, smaller mortgage and sought-after eastern suburbs (Pallara, Nudgee, Highgate Hill) attract people to Brisbane.
Brisbane is an investor's market, so it's no surprise that city-based homeowners are now considering selling and buying properties with development potential. LocalAgentFinder research reveals that the most desirable properties in Brisbane are those that can be renovated, as well as those with lifestyle benefits like schools and shopping districts close by.
In general, Brisbane boasts lower house and unit prices averages, and this has nominated Brisbane as a city with strong investor potential. Perhaps the average house price is even more attractive by the drastically higher costs of the neighbouring capital city, Sydney.
Like the rest of the real estate market in Queensland , Brisbane real estate commissions and fees are deregulated. A deregulated fee and commission structure mean that an agent can create their fee structure based on supply and demand. Fees in Brisbane are amongst the highest of all capital cities in Australia, which tells us that the market in Brisbane is not in demand enough to warrant a competitive lowering of fees. With this in mind, it’s a good idea to understand how commissions and fees work in Brisbane to ensure you are in the best possible position for negotiations.
Real estate agent fees and commissions can vary depending on the location of your home within Brisbane, your property type and the overall property condition. It's a good idea to understand the average costs of real estate agent commissions to help guide you before committing to an agent. Comparing real estate agents will help you understand how commissions and fees are allocated and the various ways in which this occurs. Comparing real estate agents in your area will also help give you an overview of how agents create their fee structure and what is included in that structure.
It's also a good idea to understand the basic allocations that fall under each term “commission” and “fee”. More often than not, we will bundle this term together, and we don't realise that in the real estate world, commission and fees are two separate costs.
Commission is usually the term for the sole allocation of the percentage of the total cost that your property has sold for, whereas agent fees can sometimes cover the more external costs involved in selling a property – like real estate marketing fees and/or administration costs.
With commission and fee costs higher in Brisbane than in most of the country, it's more important than ever that you ask for full transparency on what your real estate agent costs will cover. This way, you can be sure that no external costs will occur with your agent.
Brisbane is an investor's market, so it's no surprise that many homeowners are now considering selling and buying properties with development potential to prospective buyers. So, if you're considering selling in Brisbane, what commission rate should you expect to pay?
The average real estate commission rate in Brisbane is 2.52%. The below chart looks at how Brisbane compares to the rest of Australia's capital cities.
| City | Ave. Fee |
|---|---|
| Canberra | 2.19% |
| Sydney | 1.87% |
| Darwin | 2.49% |
| Brisbane | 2.52% |
| Adelaide | 1.90% |
| Hobart | 2.67% |
| Melbourne | 1.93% |
| Perth | 2.28% |
Brisbane ranks highly, second only to Hobart , which has notably higher commission rates when compared to all other capital cities. A lower level of competition generally means that agents can set their commission fees at higher prices, as there isn't a need to drive them down to contend with fellow local agents. However, Brisbane slightly bucks this trend as many real estate agents have a high average commission rate and a relatively competitive property market.
It can be revealed that the average commission rate is more or less consistent across Brisbane and doesn't fluctuate to a high degree, even when Brisbane CBD is compared to the outer regions of the capital city.
While Brisbane's commission rates are less than thrilling for the homeowner seeking to sell, it's important to remember that commission rates are only one part of the consideration.
It's also a good idea to consider an agent's sales history, local knowledge and confidence in their ability to sell your home. Commission and real estate fees are important factors but don't necessarily need to be the basis for your decision.
With such a high fee; it makes sense to gather every piece of information possible to help you negotiate. We've created a guide to help you better understand how fees and commissions work in order to put you in a stronger position.
Real estate agent commission is generally structured in one of two ways.
A fixed-rate agreement means that you will always pay the same amount, and the amount you agree to pay will never change, regardless of the price your property will sell for. This approach is good because it allows for peace of mind around the money you are paying and enables you to reach your bottom line on commissions. However, the potential drawback of this method is the danger of your agent selling your property quickly, resulting in a lower price for you.
Tiered percentage works a little bit differently. The tiered percentage is more suitable for a larger house in a popular area. As the option operates on a sliding scale, it is believed to encourage agents to get a higher price for a property. 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 than that. 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. However, the potential drawback is that you may end up paying more commission than you had initially believed you would. There is no certainty around what you will pay in commission, which can cause unease.
The commission structure you choose, the size of your property, the current market, and the suburb you are based in Brisbane will all contribute to determining how much commission you will pay. It's also a good idea to consider that while commission rates are naturally going to contribute to your overall decision when choosing a real estate agent, there are other factors to consider, such as reputation, local knowledge and the agent's background.
We understand that higher averages like the ones seen in Brisbane can be intimidating, but once you compare agents and have all the information, you should feel more comfortable. LocalAgentFinder keeps up to date with local data and trends to better inform our audience. We've already given you averages and definitions that should help with the negotiation process, but we also have some further top tips to help you out.
Your house is an incredibly valuable asset, don't leave it in the hands of anyone less than perfectly qualified for the job. LocalAgentFinder uses a list of your requirements to source suitable agents in your area and delivers them straight to you.
Hidden fees are a watch out for anyone selling their home. The good news is that LocalAgentFinder is completely free for homeowners. The agent you choose will only pay LocalAgentFinder a referral fee after successfully selling your property.
The marketing plan for your property, what marketing costs fall under fees, and the options available to you in terms of commission structure – these are all questions you should be asking. How much should you expect to pay in marketing and advertising costs? How do I understand my property value? A good agent will provide complete visibility to you. You should feel comfortable asking questions and seeking detail.
Selling your home in Brisbane? We know the challenge you face, and we're here to help! If you'd like to compare real estate agents in the Brisbane region, look at LocalAgentFinder today and see if we can help. We also have a fully operational Australian-based call centre, so if you have any questions, call us at 133 033.
The suburbs with the highest real estate commission rates in Brisbane as of May 2021 are Anstead, Bellbowrie, Darra, Moggill and Seventeen Mile Rocks, with an average commission rate of 2.77%, followed by Sinnamon Park at 2.76%. This is based on a property sale of $500k.
The suburbs with the lowest real estate commission in Brisbane as of May 2021 are Keperra and Rocklea, with an average commission rate of 2.25%, followed by Algester, Ferny Grove, Nathan and Upper Kedron at 2.29%. This is based on a property sale of $500k.
In areas closer to the Brisbane CBD, real estate agents commission rates are generally lower because there's high competition, and the agents try to offer competitive rates. When it comes to regional areas, the commission rates tend to be higher because there's less competition for the agents, and they can charge higher rates.
As of May 2021, Brisbane - South region has the highest real estate commission rate in Brisbane with an average commission rate of 2.54%, followed by Brisbane - East and Brisbane - West at 2.53%. This is based on a property sale of $500k.
As of May 2021, Brisbane - North has the lowest commission rate in Brisbane, with an average commission rate of 2.42%, followed by Brisbane Inner City at 2.48%. This is based on a property sale of $500k.
To determine average commission rates, LocalAgentFinder took the average commission of all active agents respectively on September 2022. This included agents with tiered and fixed commission structures based on a $500,000 selling price. This page was updated on 20 October 2022.