Real Estate Agent Fees in Melbourne
Over the last year, Melbourne has experienced unprecedented growth in the property market. Record low interest rates combined with a surge in foreign investment and housing development, have prompted a massive jump in property values across the capital city. The median sale price has increased by 6.6% over the last 12 months, with the median house price for Melbourne now standing at $638,445.
With such a strong seller’s’ market, it’s no surprise that many homeowners are now considering selling while Melbourne’s hot streak continues. Melbourne has achieved historically high auction clearance rates in 2015, repeatedly reaching above 80%. Indeed, LocalAgentFinder research reveals that 71% of Melbourne based real estate agents believe auctions to be the preferred method of sale in the current market.
In terms of buyer interest, the most desirable properties right now are those located close to amenities such as schools, supermarkets and shopping hubs, while properties with development potential are becoming increasingly popular.
What you need to know about real estate agent fees in Melbourne
Real estate agent fees in both Victoria and Melbourne are the lowest in Australia. The average real estate agent commission rates across the state sits between 2.5% to 3%, while average agent fees in metropolitan Melbourne range from 1.6% to 2.5%, depending on location. Average real estate agent fees are influenced by a range of factors, and vary depending on a suburb’s location, and proximity to services, amenities and lifestyle interests.
In Victoria, agent fees are deregulated, meaning agents can set their own commission rate, and fees are driven largely by free market competition. The densely populated inner city areas, which have a higher number of agents servicing them, and where properties are typically the most expensive, generally have the lowest real estate agent fees. Outer metro areas however, tend to have the highest agent fees, fuelled by sparser population, less demand, and fewer agents in operation.
Melbourne’s most popular, and fastest growing suburbs see agents charging some of the lowest fees. The median sale price of inner city suburbs of South Yarra and South Melbourne has increased by a whopping 30% and 25% respectively, yet the hot suburbs’ average commission rate range rests at a cool 1.35% to 1.89% – the lowest range across the city.
Across ‘middle Melbourne’ suburbs within 10–20 kilometres from the city, higher average agent real estate agent fees begin to creep in, with many suburbs like Burwood and Oakleigh attracting an average range between 1.9%-2.2%. Further out, suburbs like Reservoir, Epping and Doncaster peddle higher real estate agent fee ranges of 2.21% to 2.6%. This trend continues into ‘outer Melbourne’ suburbs, with average agent commission rate ranges climbing as high as 3.90% in some areas.
While there is a clear correlation between proximity to the Melbourne CBD and average real estate agent fees, rates will vary from suburb to suburb, and there are exceptions on both ends of the scale. To properly understand what agents are charging in your area, it’s worth comparing commission fees from a range of local agents.
Find out more about real estate agent fees and commissions across Australia.
What to consider when researching real estate agent fees in your area
- A real estate agent’s fee is certainly a key consideration when selecting an agent, however it should not be the only one. Agents base their fee on a range of criteria, such as their experience, marketing strategy and expertise, and these factors should be researched and considered with equal weight.
- Real estate agent fees across Melbourne will generally be lower the closer your property is located to the CBD. In order to get a good idea of agent fees in your suburb and what services they can offer you, it’s worth comparing several local agents.
- Proximity to amenities, like local schools and shopping centres are among buyer’s top priorities, so it’s important to select an agent that has a deep local knowledge of your area and its features.
Want to find out exactly what agents are charging in your area? LocalAgentFinder is an impartial, online comparison service that lets you compare a wide range of local agents to find the agent that’s right for you. Get started now, so you can make the right decisions, right from the start.
- Real Estate Agent Fees & Commission Sydney
- Real Estate Agent Fees & Commission Brisbane
- Real Estate Agent Fees & Commission Canberra
- Real Estate Agent Fees & Commission Darwin
- Real Estate Agent Fees & Commission Perth
- Real Estate Agent Fees & Commission Adelaide
- Real Estate Agent Fees & Commission Hobart