Yes, negotiation is par for the course. We understand that negotiating fees and commissions can be challenging for some sellers. Generally, you'll find more competitive rates and flexibility with city-based real estate agents compared to their rural counterparts, where there's less competition.

Knowing the real estate agent's service fee, commission structure and local performance before you meet them can make all the difference and put 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 two to three local real estate agents, here are some tips for effectively negotiating fees and choosing the right agent to sell your property.

1. First, ask the agent what their commission rate is and feel free to mention that they’re competing with other agents. If they want your property and know there's competition, they might be more willing to "price match" a competitor.
2. Ask if the real estate agent is happy to use the tiered commission structure mentioned below if it's your preference. This commission structure should incentivise the agent to get you the highest price.
3. Ask them exactly what their commission rate involves and whether there are additional costs to compare agents effectively.
4. Remember that if your property value is higher than average, you're in a better position to negotiate a lower rate.
5. Ask the real estate agent to provide their fees and commission rate in writing.

The term fixed rate, flat fee or fixed fee refers to one of three main commission structures in Western Australia. It means you agree to pay a specific predetermined rate after the property sells, and you pay the same fee no matter the final sale price. This method gives you peace of mind and certainty over the agent fee. However, this commission structure's potential disadvantage is that the real estate agent will sell the house quickly, even if that results in a lower price, as they need a high turnover of properties to meet their yearly salary expectations.

In the real estate industry, the tiered percentage commission structure works on a sliding scale and encourages agents to secure a higher sale price. You agree to a certain percentage commission, and they receive an additional bonus if they obtain 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 if the property reaches 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.

Now, while some WA real estate agents include marketing and advertising fees within their commission, most agents charge it as an additional cost. So you know what to expect, request a breakdown of these costs from your agent 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 your key buyer demographic. The more potential buyers that know your property is for sale, the likelihood you'll sell for the highest price possible. The marketing and advertising costs should include the following:

1. Online advertising is the most valuable marketing channel in real estate. You'd expect 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 Perth can range from $400 to $1000 for 45 days.
2. Property listings in local print publications such as newspapers and magazines.
3. Open house signs and a sale sign.
4. Professional photography and videography.
5. Flyer and brochure creation for open house inspections.
6. A social media campaign.

Most real estate agents will charge auctioneer fees on top of commission. 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 possible selling price. A Western Australian auctioneer can cost between $200 and $1000.

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).