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.
Below, we'll cover the following:
How do Real Estate Agent Fees Shape Up in New South Wales?
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.
Average Commission Rate by State
| State | Commission Rate |
|---|---|
| SA | 2.00% |
| NSW | 2.02% |
| VIC | 2.04% |
| ACT | 2.23% |
| WA | 2.40% |
| QLD | 2.58% |
| NT | 2.52% |
| TAS | 2.84% |
How does the New South Wales average commission compare 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 2.00%. 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.
Average commission rates in regional vs metro areas of NSW
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.
Average rates across New South Wales
| City | Ave. Commission Rate | Lowest Rate | Highest Rate |
|---|---|---|---|
| Sydney | 1.84% | 1.00% | 3.30% |
| Regional | 2.41% | 1.10% | 3.90% |
From LocalAgentFinder Data Researched November 2019
*Average commission rates across New South Wales based on a property sale of 500k
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.
Additional real estate agent fees to consider
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.
Marketing fees
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.
What’s usually included in marketing costs?
- Property listings on real estate websites
- Property listings in local print publications such as newspapers and magazines
- A signboard for the front of your property
- Professional photography and videography
- Flyer and brochure creation for open for inspections
- Social media amplification of your property listing
Auction fees
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.
Staging fees
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.
Top Tips for Selling your Home in New South Wales
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.
- Commission rates and fee averages are not the sole decision-makers: Knowing the commission rates and fees is useful. The really important factors to consider when choosing an agent are things like their sales success rate, reputation, and local knowledge. You don't need to pin everything on commission rates – it can be a consideration, not a decision-maker.
- Clear marketing plan: Your agent should have a sound plan for both the online and offline marketing of your property. You should have every confidence in their ability to market your home to the right audience.
- Do a background check: It’s okay to check the work history of your agent. LocalAgentFinder helps you find the perfect agent and look into the background and history of potential real estate agents. This gives you the power to make informed decisions based on real information.
- Compare agents: It's a good idea to compare agents in order to ensure your needs are well looked after. LocalAgentFinder does the hard work for you, we’ll recommend a number of agents that match your requirements to allow you to get on with the more important things at this busy time.
Free comparison service by Local Agent Finder
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:
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- Our free comparison service is completely anonymous until you decide to get in touch with your selected agent, meaning you’re able to shortlist the agents without them knowing.
- No other online real estate agent comparison site compares such comprehensive commissions and fees data online, and our expert homeowner assistance team are here to help talk you through this information.
- Understandably, you may be worried about hidden costs. The good news is, we’re a free service for all people in New South Wales who are seeking to sell their home. The agent you choose will only pay LocalAgentFinder a referral fee, only upon successful sale of your property.
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.
Real Estate Agent Fees & Commissions by State
To determine average commission rates, LocalAgentFinder took the average commission of all active agents respectively in November 2019. This included agents with tiered and fixed commission structures based on a $500,000 selling price. This page was updated on 27 November 2019.