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New South Wales is home to Australia’s most populous city, Sydney. Over the past couple of years, New South Wales real estate agent commission rates have remained low in comparison to the rest of the country, and relatively flat year on year. However in 2019, when we look at Sydney specifically, commission rates have shifted up slightly since mid 2018, perhaps a result of falling property prices and real estate agents protecting themselves in light of changing market conditions.
The New South Wales market is deregulated, meaning there is no standard practice when it comes to allocating commission and fee rates. More often than not, these fees are driven by a number of key factors, for example, the level of market activity and competition in an area. For this reason, it makes sense to assume that agents in rural regions often charge more than agents in built-up city areas, where a higher population (like Sydney) often means higher competition among agents and therefore lower rates.
The bar chart below highlights how the NSW average commission rate compares to the rest of the country.
The average commission rate in NSW is second lowest in Australia at 2.02%, sitting just above Australia's lowest average, South Australia at 1.96%. Over the past two years, the average commission rate in New South Wales has remained relatively flat. As mentioned, NSW’s low rates in comparison to the rest of the country can be attributed to the higher levels of competition in inner city Sydney and larger rural towns such as Newcastle, as compared to smaller states like Tasmania and the NT where they have fewer high density areas.
It’s important that you understand that agents don’t always include their marketing and advertising fees in commission. Whatever way your agent chooses to charge their commissions and fees in New South Wales, make sure you know how to negotiate this if required. Many agents are willing to negotiate their fees and commissions.
As mentioned, it’s good news if you’re selling a home in New South Wales when it comes to real estate agent commission rates and fees. NSW has a below-average rate of commission and this is especially true in Sydney. With a market slowdown currently occurring in many areas of New South Wales, finding the best real estate agent and ensuring you get the best possible price for your home is very important.
Real estate markets differ significantly in NSW and this is due to the changes in economic activity which impacts locations in different ways. Below is an outline of how regional areas compare to metro areas in NSW which will help you understand the commission trends in NSW.
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We believe that it’s just as important to know how to find an agent who understands local conditions as it is to find one who charges affordable fees. Commission rates are important, but they're not everything. Your agent should have more than simply a competitive commission and fees rate – a good agent will also have a sound marketing strategy and strong sales history.
In addition to the commission, real estate agents may charge you a marketing fee, and sometimes an auction fee, or a staging fee depending on the situation.
Some real estate agents in NSW include marketing fees within their commission, and other agents will charge marketing fees in addition. It's a good idea to request a breakdown of marketing costs from your real estate agent before you sign them on, to ensure you'll get the most bang for your buck.
Similar to marketing fees, some real estate agents will charge an auctioneer fee on top of the commission amount. This is for the services of the auctioneer on auction day. An auctioneer fee generally sits at around the $600 dollar mark.
Home staging is the process of preparing your home for inspections, photography and selling day. It may involve simple styling tips, all the way through to furnishing your home for the duration of the selling campaign.
A good real estate agent will either be able to give you staging advice themselves, generally as a part of their commission, or may connect you with professional home stagers in your area.
Staging can cost you a few thousand dollars, but again can vary depending on the size of your property and the duration of the campaign. We recommend getting tips from your real estate agent as a first step and hire a professional if they recommend doing so.
At LocalAgentFinder, we have expert knowledge of the current real estate market and we stay up to date with important data, figures, and trends to give you the very best possible advice.
Here are some tips we’ve learnt along the way to help you with selling your home.
If you’re thinking of selling your property in New South Wales, you’ll want every possible chance to make the process as stress-free as possible. At LocalAgentFinder, we can help with some of the heavy lifting. Here are some facts about us to help you better understand how we work:
If you’re selling your home in New South Wales and want to have a chat, feel free to contact us. We have a fully operational Australian based call centre, so if you have a question, call us 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.