Let’s start with how an agent charges commission in Canberra. Like the rest of ACT, real estate agent fees are deregulated. A deregulated fee and commission structure mean that agents usually set fees based on market demand. Market demand in Canberra is higher, as the states capital city we would be more likely to encounter a high level of market activity when compared to regional areas in the ACT. In city areas, there’s a high demand for real estate agents, so agents generally charge a lower commission rate, whereas regional areas have fewer servicing real estate agents, so a higher commission rate is usually the norm.
Real estate agent fees can vary dramatically depending on location and property type, so it’s always worth researching what agents are charging in your local area by comparing a number of local agents. Comparing agents will help you understand the varying factors that contribute to a difference in commissions and fees charges.
Commissions and fees in Canberra will be charged at a lower rate than the rest of the state (generally speaking) and that’s good news for those selling property in Canberra. It’s also important to consider how we define what is charged under the terms “commissions and fees”. Agents will usually allocate different costs under the term “commission” and “fee”. For example, the term commission will usually refer to the percentage allocation of the total cost of the property sold. Fee, however, is sometimes charged a little bit differently. Marketing and advertising costs can sometimes sit under the term fee and so it’s important to define how much you are willing to pay for both commission and fee as a separate value.
Real estate agents in Canberra are aware of the competition in the market and so are usually willing to negotiate fees and commission rates with homeowners in order to win your business.