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Types of real estate agent commission structure
Fixed rates
A fixed rate percentage is when you pay a specific dollar amount upon the sale of your property. There’s no standard commission rate, and they can vary from agent to agent. No matter what the sale price is, this approach gives you certainty over the fee, but also encourages a quick sale, even if that means a lower sales price for you.
Flat rates
There are a select few real estate agents who’ll agree to a flat fee structure rather than commissions. This means as a customer, you’ll know what the cost of selling your house is, no matter what the price.
Tiered rates
This means that you’ll pay a commission rate depending on the sale price of your property. Tiered rates are intended to encourage real estate agents to obtain a higher sale price than expected. For example, you could agree to pay a 2% commission at a sale price of $480,000 or less, then you might agree to pay 10% commission on anything above $480,000.
Other fees to consider
Online Marketing cost
The three main websites agents use to sell property are Realestate.com.au, Domain.com.au and Realestateview.com.au. Listing your property on these websites are well worth it as you’re likely to attract buyers through these channels.
Traditional Marketing cost
Depending on the agent you choose and the area you live in, other forms of advertising could include local newspapers, flyers, brochures or signboards for the front of your property.
Conveyancing costs
A professional conveyancer or conveyancing solicitor helps with settlement and title transfer process. It’s a good idea to budget between $600 to $1200 for conveyancing. Again, these costs can vary depending on where you’re located and the service you choose.
Photography
Good photography can make a huge difference to your listing, both online and in the press. A good real estate agent will either have an in-house photographer, or they might outsource.
Auctioneers
If you’re selling your house via auction, there may be a fee paid to the auctioneer that’s separate to the agent’s commission fee.