The property market in Western Australia is playing catch up to the hot property pockets of the eastern states, after performance down due end of the mining boom.
In March this year, the average house price in Western Australia was $535,900, which stands as the fourth highest out of all states and territories. This has dropped by a significant 3.18% since March the previous year. (Source: ABS 2017)
It’s not all doom and gloom for the West. Median house prices are set to grow by 3% by 2020 in Perth, currently sitting on $540,000 (Source: BIS Oxford Economics 2017)
What do real estate agents charge in WA?
In Western Australia, real estate agents usually charge an average of 2.31% in commission when selling a home. However, the amount that a real estate agent charges can differ greatly depending on region, suburb or even property type, not to mention whether or not an agent includes all services in the commission.
Real estate agent fees are deregulated in Australia, which means that agents can set their own commission rates, usually in negotiation with the home seller. Agent fees are usually guided by the economic principle of supply and demand, which means areas with a higher number of operating agents and higher numbers of sales tend to display lower commission rates. While areas with fewer agents servicing them and fewer sales generally have higher commission rates.
In comparison to other capital cities, Perth’s average commission sits higher than Sydney, Melbourne and Adelaide at 2.24%, but less than Gold Coast and Brisbane. The average commission in Perth is lower than the Western Australian average, most likely due to increased competition compared with regional areas. Find out more about real estate agent fees and commissions across Australia.
What to consider when finding the right agent to sell your home in WA
- As Perth housing prices continue to drop, it’s important to select an agent based on criteria other than the commission fee charged. Compare a number of agents based on other factors like experience and expertise, as well as knowledge of your local market.
- Agents that operate in regional WA and outer metro areas will generally charge more than city-based agents due to less competition. It’s a good idea to compare commissions to find out the average agent fee in your area.
- Not all real estate agent fees are created equal, it’s essential to ask what is included in your agent’s fee before going forward. Some agents will charge extra for services like marketing, while others cover this expense in the commission rate.
Want to find out what real estate agents are charging in your area?
Comparing local agents is a great way to discover the average agent fee charged in your local area. You can compare real estate agents at LocalAgentFinder, including performance data, homeowner reviews, agency information, fees, commissions and more.
- Real Estate Agent Fees & Commission NSW
- 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 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 21st June 2017.