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The Australian Capital Territory (ACT) is located in the south-east side of the country. The ACT is home to a stable housing market, steady employment and rapid population growth.
The Australian Capital Territory is the most densely populated of Australia’s states and territories and over 400,000 people reside in Canberra, the only city in the state. Real estate agent fees and commissions in the ACT have fluctuated slightly over the last two years. Commission rates in the ACT sit in the middle in comparison to the rest of the country.
Interestingly, most of the population of Canberra work directly or indirectly for the government, so the ACT’s property market is closely linked to the staffing policies of the elected government.
In the state of Australian Capital Territory, real estate agent fees are deregulated. Deregulated agent fees mean that agents are free to set up their own commission and fee structure. So, what does this mean for residents of ACT who are selling a property? Well simply put, it means that agents are free to set up a fee structure that is guided by ‘supply and demand’ of the free market. So, for example, real estate agents in rural areas of the ACT usually charge a higher fee than agents in metro Canberra, simply because there is less market activity and less competition when selling a home. As well as this, prices are generally inclined to increase closer to city areas, agents also charge a lesser commission on properties with these high price tags.
Another part of the fee structure question that’s important to consider is what exactly is included in your commission and fees. Agents don’t always include their marketing and advertising fees in commission, in fact, more often than not, this may sit within the terms “fees”. Sometimes we look at both the terms (commissions and fees) as one general cost, when in fact agents use these two terms to allocate different costs within different parts of the selling process. Commission is the actual percentage allocation of the total property sale, and fees sit outside of this – often allocated to marketing or other administrative costs. It’s a good idea to find out more about your agent’s fee structure before making an agreement.
Regardless of the way an agent sets up a commission and fee structure in the ACT, as the homeowner, you should comfortable enough to negotiate the commission and fee rate with your agent.
In recent times, Canberra has become a popular focus for both investors and owner occupiers in the Australian Capital Territory. Canberra is the only city in Australia that has had a house price growth over the last quarter. This could explain the recent drop in ACT commission rates over the last 2 years as agents don't need to raise their commission rates in response to a slowing market. The ACT commission rates mean homeowners are saving on agent commission costs. In Canberra specifically, homeowners are saving up to hundreds on commission as rates as compared to 2019.
ACT agent commission rates vary significantly depending on where you're selling. There are more than 250 real estate agents across the ACT. Real estate agents on the LocalAgentFinder panel charge an average commission rate of 2.14%. The average commission rate tends to be higher in districts south of Canberra CBD, such as Chifley and Gordon with commission rates sitting at 2.27% and 2.18% respectively.
The table below illustrates how ACT real estate agents’ fees stack up compared to the rest of the country. It’s important to remember that rates can change over time. This is the most accurate available average commission data in the country, but keep in mind that what you actually end up paying will depend on your property, local market and the agent you select.
Your ability to negotiate fees and commissions will depend on your location (whether you’re closer to the CBD or further out). We understand that you may have questions about how commission works, and you shouldn’t be afraid to ask them. For example, you may ask questions like how effective is the commission-based model as an incentive for agents? Or, will a commission-based structure really ensure the best possible price for my property?
To you negotiate fees and commissions with your potential real estate agent, it’s vital that you a) have the correct up to date information and data to inform your bottom line, and b) fully understand the process of how commission and fees are calculated.
With regards to up to date information and data, we’ve supplied that to you right here. Our expert team have analysed the relevant data and pulled out averages to help you determine what you’re willing to pay in commission and fees. While this information is useful, we encourage you to consider it as a guide. We also encourage you to remember that commission and fees will depend on an array of other circumstances. For example, the size of your property and current market conditions. To get exact commission rates for agents in your area, you can compare real estate agents using our comparison platform.
With regards to fully understanding how commission works, we’re here to help you by giving you simple definitions that are designed to make things easy.
A commission-based approach is used to encourage the agent to secure a higher price for your home which earns the agent a bigger commission, so you could say it’s a win-win situation. However, your win would depend on what you deem to be a fair commission rate, and this will depend on many factors (including the size of your property, the location of your property and amenities in your area.). Some agents are willing to negotiate their fees, and the fee structure is usually one of the two most common; fixed rate and tiered percentage.
Option 1. Fixed rate means you agree to pay a specific dollar amount upon the sale of your property and because the rate is fixed, it doesn’t matter what the final price is. This approach gives you certainty over the fee, but this approach can sometimes cause fear that the agent will sell the house quickly, even if that results in a lower price.
Option 2. The tiered percentage option operates on a sliding scale and many believe this is a better option as it encourages agents to secure a higher sale 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 is sold for more than that. So, if the sale price is $500,000 you’ll pay 2% on first $480,000 (being $9,600) and, for example, 10% on the additional $20,000 (being $2,000). The total commission payable would be $11,600.
Selling your home is one of the most important selling decisions of your lifetime, and it’s not always easy. We know this because we speak to people who are selling their home in the Australian Capital Territory every day. Our highly trained customer assistance team have expert knowledge of the ACT market and continually analyse the most relevant and up to date data available to ensure you’re recommended with the right agents for your unique selling situation. With that in mind, here are some things we’ve found out to help you sell your home in the ACT.
Selling your home in the ACT can be a challenge, but with the right help and tools, we’re confident you’ll succeed in securing the best possible price with the best possible agent.
So, if you’d like to compare real estate agents, you can register with LocalAgentFinder today. We also have a fully operational Australian based call centre, so if you have any questions, we’re here to help. You can give us a call on 133 033.
To determine average commission rates, LocalAgentFinder took the average commission of all active agents respectively 26 May 2021. This included agents with tiered and fixed commission structures based on a $500,000 selling price. This page was updated on 20 June 2021.