Can you negotiate fees and commissions in ACT?

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 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.

Real Estate Agent Fees ACT | LocalAgentFinder

Real Estate Agent Fees in ACT

LocalAgentFinder provides you with the tools to compare and select the right agent to best suit your needs

A quick introduction to ACT real estate agent fees

Located in Australia's southeast, the Australian Capital Territory (ACT) is home to a stable housing market, steady employment and rapid population growth. It's the most densely populated Australian state, as over 400,000 people reside in Canberra, the state's only city.

Real estate agent fees and commissions in the ACT have fluctuated slightly over the last two years, with commission rates sitting in the middle in comparison to the rest of Australia. Interestingly, most of Canberra's population works directly or indirectly for the government, so the ACT's real estate industry is closely linked to the staffing policies of the elected government.

How do real estate commissions and fees work in the ACT?

In the ACT, real estate agent fees are deregulated, which means that agents are free to set up their own commission and fee structure. However, agent fees are driven by a few key factors:

Supply and demand

The market's supply and demand is the main factor driving an agent's fee and commission structure. For example, real estate agents in regional areas usually charge a higher commission than agents in metro Canberra. This is because there is less market activity and fewer agents, which equals less competition when selling property.

In contrast, Canberra agents charge lower commission rates as there's greater competition. It's in an agent's best interest to offer competitive rates to win your business. Prices also generally increase closer to city areas, so agents charge a better price for properties with higher sale prices.

Property value and type

Depending on the region, suburb and property type, real estate agent fees can also differ significantly. Suppose you're trying to sell an unusual property. In that case, most agents will ask for a higher commission to compensate for the extra time and effort involved in the selling process and advertising such an exclusive property to a smaller set of potential buyers. On the other hand, a higher property value typically equals a higher commission.

A beginner versus an experienced real estate agent

Typically, you'll find that local agents have a lower commission rate at the beginning of their careers compared to experienced agents as they don't yet have the sales history or market knowledge. Before deciding on which real estate agent to choose, do your research via LocalAgentFinder to find a quality agent that has experience selling similar properties, comprehensive local knowledge of the property market and offers a reasonable commission.

Another important factor to consider is what exactly is included in the commission and fees. Typically, the commission is the actual percentage allocation of the total property sale, and fees are an additional cost. Real estate agents usually include their marketing, advertising, and administrative costs under "other fees." It's a good idea to learn more about your agent's fee structure before signing the agency agreement.

Regardless of how an agent sets up their fee and commission structure , every homeowner should feel comfortable negotiating the commission and fee rate with their agent.

What is the ACT's average real estate commission rate?

In recent times, Canberra has become a popular focus for both investors and owner-occupiers. In fact, Canberra is the only Australian city with house price growth over the last quarter. This could explain the drop in ACT agent commission rates over the last two years, as agents don't need to raise their commission in response to a slowing market. In Canberra specifically, homeowners are saving up to hundreds on commission rates compared to 2019.

ACT average commission rates vary significantly depending on where you're selling. There are more than 250 real estate agents across the ACT, and according to LocalAgentFinder, they charge an average commission rate of 2.17%. The average commission rate is 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 agent fees stack up compared to the rest of Australia. It's important to remember that rates can change over time, but this is the most accurate available average commission data in Australia. Keep in mind that what you end up paying will depend on your property, the local market and the selected agent.

State	Ave. Fee
ACT	2.17%
NSW	2.01%
NT	2.49%
QLD	2.56%
SA	1.94%
TAS	2.71%
VIC	2.00%
WA	2.32%

From LocalAgentFinder Data Researched September 2022

Top Tips for selling your house in Australian Capital Territory

Selling your home is one of the most important decisions of your lifetime, and it's not always easy. We know this because we speak to local home sellers daily. Our highly trained customer assistance team have expert knowledge of the ACT property market. They continually analyse the most relevant and up-to-date data available to ensure they recommend the most suitable agents for your unique selling situation. With that in mind, here are some things we've learnt along the way to help you with your property sale:

Think outside of commission and fee rates. Yes, they're important, and this guide is advantageous when negotiating a fair commission rate in your selling location. But it's a good idea to also consider the agent's past sales history, local market knowledge, reputation and independent homeowner reviews.
Speaking of, while you may be tempted to bring on the agent with the lowest commission rate, this can be risky. Sometimes low commission equals less experience, which can lead to a lower selling price. This tactic may inevitably cost you more money if your house sells for a lower price or you have to extend your marketing campaign. Ensure you always look at the past performance of cheap and expensive agents via LocalAgentFinder to see their recent sales and how long similar properties remained on the market.
Compare agents. Everyone's needs vary widely when it comes to selecting the right agent. LocalAgentFinder recommends the top three local agents based on your preferences and their market performance. Beyond the top three, you can also access your full agent results for further comparison.
Your agent needs a good marketing campaign that lives online and offline to reach the highest number of potential buyers. Ensure your agent gives you a detailed overview of their marketing campaign.
LocalAgentFinder is the perfect tool for finding new agents. It also allows you to do a background check and view an agent's sales history and performance reviews. This means you can make an informed decision based on real data and independent advice from fellow homeowners who have previously used your recommended agents.

Selling your home or investment property 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 sale price with the best possible agent.

LocalAgentFinder: a free comparison service provider

Here are some fun facts about LocalAgentFinder to further understand how we work:

Our comparison service is completely anonymous. So until you decide to contact an agent, you can make your shortlist as short or as long as you like. The agents you don't contact will never know.
At LocalAgentFinder, you can compare the most comprehensive set of real estate agent commission rates in the country. You can't find ACT commission and fee data like this anywhere else online.
Sometimes hidden costs creep in, but you don't have to worry about that LocalAgentFinder. We're a free comparison service for all Australian homeowners looking for the right real estate agent. The agent you choose will only pay LocalAgentFinder a referral fee upon the successful sale of your property.

Can you negotiate fees and commissions with ACT real estate agents?

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 ensure the best possible price for my property?

To negotiate fees and commissions with your potential real estate agent, it’s vital that you have the correct, up-to-date information and data to inform your bottom line and fully understand the process of how commissions and fees are calculated.

Fortunately, we’ve supplied you with the updated information right here. Our expert team have analysed the relevant data and calculated the averages to help you determine what you’re willing to pay in commission and fees. While this information is helpful, we encourage you to consider it as a guide only.

It's also important to remember that commission and fees depend on several other circumstances, like a property's size and current market conditions. To get exact commission rates for agents in your area, visit our comparison platform.

Knowing the agent's fees, commissions and performance in your suburb before you meet them puts you in a great position to negotiate. LocalAgentFinder's leading online comparison platform, selling guide and agent questionnaire gives you access to this information and much more.

What is fixed rate commission?

Fixed-rate or fixed fee means you agree to pay a set, predetermined amount upon the sale of your property. Because it's a fixed fee, you pay the same amount, no matter the final sale price. This flat fee approach gives you certainty over the fee, but it can also sometimes cause fear that the agent will sell the house quickly, even if that results in a lower price.

What is a tiered commission structure?

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 for a higher sale price. 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 $2000). The total commission payable would be $11,600.

What are the average real estate marketing fees?

Now, while some ACT real estate agents include advertising and marketing fees within their commission, most agents charge it as an additional cost. So you know what to expect, request a breakdown of these costs beforehand. However, remember that advertising and marketing costs vary widely, depending on the campaign and your property's location. For example, if your property is listed for $500,000, budget $2000 to $5000 for marketing and advertising.

What's included in the marketing costs?

Experienced real estate agents will create a print and digital marketing campaign that expertly targets your key buyer demographic. The more prospective buyers that know about the property sale, the likelihood you'll sell for the highest price possible. The marketing and advertising costs should include the following:

Online advertising, including 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 in Canberra ranges from $400 for a standard listing to $3600 for a premier listing.
Having the property advertised in local newspapers and magazines.
Open house signs and a for sale sign.
Professional photography and videography
Flyer and brochure creation for open for inspections
Social media amplification of your property listing

How much are auctioneer fees?

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.

What are home staging fees?

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.

What other potential real estate fees should you be aware of?

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

The conveyancing fees and legal costs involved with preparing your settlement contract are typically not included in agent fees. In the ACT, conveyancing is a separate fee ranging from $700 to $1300.
If a mortgage remains when you sell your property, your bank will charge a mortgage discharge fee for the paperwork involved. Fees vary depending on the bank or home loan lender, but it's typically around $1000.
It's best to budget about $800 for moving costs.
Capital gains tax.