Yes, you can negotiate commissions and real estate fees in Tasmania. Negotiations can be a tough time, and that’s why it’s essential to have as much information as possible so you're in the strongest position to negotiate.

In a property market like Tasmania's, your commission's final cost will depend heavily on location, location, location. For example, we know that Hobart has a more competitive market compared to regional areas, meaning you’re likely to pay a lower commission rate.

Knowing a real estate agent's service fee rate, commission structure, and previous local performance puts you in a great position to negotiate. roomr's leading online comparison platform, selling guide and agent questionnaires gives you access to this information and more.

Once you've done your research via roomr and have a shortlist of local agents, follow these tips for effectively negotiating real estate fees and choosing the right agent to sell your property.

1. First, ask the real estate agents about their rates and commission structures and mention they're competing with other agents. If they're keen and know there are other agents competing for the sale, they might be more willing to "price match" a competitor.
2. Ask if the real estate agent is happy to use your preferred commission structure, whether that's a tiered or fixed fee. Tiered commission incentivises the agent to obtain the highest possible sale price.
3. Ask what the real estate agent's commission rate involves and whether there are additional costs to compare agents effectively.
4. Remember, you're better positioned to negotiate a lower rate if your property value is higher than average.
5. Don't leave without getting the real estate agent's fees and commission rate in writing.

A fixed-rate or fixed fee commission rate means a home seller agrees to pay a set, predetermined amount to their real estate agent after their property sells. As the rate is fixed, you pay the same amount, no matter the final sale price. This method offers peace of mind as you pay the same fee regardless. However, the potential disadvantage is the fear that the agent will sell the property quickly, even if that results in a lower price.

The tiered percentage option works on a sliding scale, which encourages agents to secure a better price. For example, you may agree to a 2% commission rate if the sale price is $480,000 or less, and an additional amount for a higher selling price. 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 $2000). The total commission payable would be $11,600.

Most agents charge advertising and marketing fees as an additional cost. So you know what to expect, request a breakdown of these costs beforehand. However, remember that marketing and advertising costs vary widely, depending on the campaign and your property's location. For example, if your property value is $500,000, budget $2000 to $5000 for marketing and advertising.

Experienced real estate agents will create a print and digital marketing campaign that expertly targets prospective buyers. The more potential buyers that know your property is for sale, the better. Marketing and advertising costs should include:

1. Property listings (with floor plans and compelling copy) on real estate websites like realestate.com.au and domain.com.au. The copywriting should be compelling and entice people to view your property. Online advertising alone in Tasmania can range from $400 to $2000 for a premier listing.
2. A property listing in local newspapers and magazines.
3. A for sale sign.
4. Professional photography and videography.
5. Flyer and brochure creation for open house inspections.
6. A social media campaign.

Similar to advertising costs, most real estate agents will charge auctioneer fees on top of the commission amount. This is the service fee for registered auctioneers on auction day. Ask your agent for recommendations on an auctioneer who will use their skills to get you the highest selling price possible. In SA, the average auctioneer fee is currently $400.

Home staging services include preparing your home for inspections, a professional photo shoot and auction day. It may involve simple styling tips or furnishing the entire property for the selling campaign's duration.

A good agent can either give you home staging advice themselves, generally as part of their commission, or connect you with local professional home stagers.

Home staging costs range from $2000 to $8000 depending on the level of service, property size and the campaign's duration. We recommend getting tips from your real estate agent as a first step and hiring a professional based on their recommendation.

Here are some other fees to consider when selling your property:

1. Conveyancing fees. Yes, you need to hire a solicitor when buying and selling a property. The South Australian conveyancing process is quite complicated, with over 10 steps and the average conveyancing fee in SA is $800.
2. Mortgage discharge fee. If a mortgage remains when you sell your property, your bank will charge a fee for the paperwork involved in discharging the mortgage. Fees vary depending on the bank or home loan lender, but it's typically around $1000.
3. Moving fees. It's best to budget about $800 for relocating your furniture and worldly possessions, but this depends on the amount of furniture and where it's moving to.
4. Capital gains tax (applicable in some situations).