In March 2017, the average house price for NSW was $886,800 (Source: ABS 2017), the highest in Australia. However, there is a large difference between average house prices in the state overall and those in the capital city, Sydney, where the median house price has soared to an average of $1,200,000. (Source: BIS Oxford Economics)
It seems that high property prices haven’t deterred buyers. LocalAgentFinder data reveals that buyers are showing more interest in properties with potential for development or renovation; lifestyle choices like closeness to schools and amenities are also important to buyers.
How do real estate agent fees shape up in New South Wales?
A flourishing property market combined with historic low in interest rates are responsible for generally low average commission rates in New South Wales. While the state is showing some of the lowest real estate agent fees across Australia in the capital city Sydney, often falling below the 2% mark, the average fee varies depending on location and can rise to high levels in regional areas.
A deregulated market in New South Wales means that real estate agents can set their own rates, and those rates are often driven by free market regulation. Agents often base their fees on a number of factors, including the level of market activity and competition in an area. It’s for this reason that agents in rural regions often charge more than agents in built-up city areas, where a higher population often means higher competition among agents and lower rates.
Real estate agent fees are generally lower in urban areas of Greater Sydney, with the average at the average sitting at 2.05%. In regional areas outside of Sydney, the average commission rate starts to creep up.
While low commission rates are an important factor when choosing your agent, it is crucial to ask an agent what is included in the agent fee. Some agents include services like marketing in their commission rate, while other agents charge extra for these services.
What to consider when finding the right agent to sell your home
- An agent based in a country or regional area of New South Wales is likely to charge a higher fee compared to a Sydney-based agent, but this doesn’t mean they aren’t worth the extra. A local agent who knows the area may also know potential buyers, or how to market your property in just the right way.
- Selecting an agent on price alone is not a great idea. Consider other factors like experience and expertise; an agent who keeps up-to-date on the latest New South Wales property law and taxes, like Stamp Duty, is worth their pay packet.
- The property market is quite competitive in New South Wales so most agents will offer good deals, but it is always better to compare a number of agents in your local area to see who is best suited to selling your property.
Interested in finding out more about your local real estate agent fees?
Discover what agents are charging in your area by comparing a range of fee information from local agents. If you’re thinking about selling your property, you can compare real estate agents at LocalAgentFinder, including performance data, homeowner reviews, agency information, fees, commissions and more. Find out more about real estate agent fees and commissions across Australia.
- Real Estate Agent Fees & Commission VIC
- Real Estate Agent Fees & Commission QLD
- Real Estate Agent Fees & Commission ACT
- Real Estate Agent Fees & Commission NT
- Real Estate Agent Fees & Commission WA
- Real Estate Agent Fees & Commission SA
- Real Estate Agent Fees & Commission TAS
To determine the average commission by state, LocalAgentFinder took the average commission of all active agents in each state respectively on 5 June 2017. This included agents with tiered and fixed commission structures based on a $500,000 selling price. The same method was applied to calculate the average commission in capital cities.
This article was updated on the 5th June 2017.