Real Estate Agent Fees in Northern Territory

Yes, negotiating fees is par for the course in the NT's real estate industry. We understand that the commission and fee structure can sometimes cause confusion. The best way to ensure you’re in a strong negotiating position that avoids the feeling of smoke and mirrors is to fully understand the different commission structures available, which we explain below. Generally, you'll find more competitive rates and flexibility with city-based real estate agents compared to their rural counterparts, where there's less competition.

Knowing the agent's fees, commissions and experience selling property in your local area before you meet them puts you in a great position to negotiate. LocalAgentFinder's leading online comparison platform, selling guide and agent questionnaires gives you access to this information and more.

Once you've done your research via LocalAgentFinder and have a shortlist of two to three real estate agents, follow these negotiating tips:

1. Ask the real estate agents about their commission rate and structure. Don't be shy about mentioning that they're competing with other agents. If they're eager to sell your property and know there's competition, they might be more willing to "price match" a competitor and offer a better price.
2. Ask if the real estate agent is happy to use your preferred commission structure, whether that's a tiered or fixed fee. Remember, a tiered commission incentivises the agent to obtain the highest possible sale price.
3. Ask what the real estate agent's commission rate involves and whether there are additional costs to effectively compare agents.
4. Remember, you're better positioned to negotiate a reasonable price if your property value is higher than average.
5. Don't leave without getting the real estate agent's fees and commission rate in writing or specified in your agency agreement.

A fixed-rate or flat fee commission means you agree to pay a set, predetermined amount upon the sale of your property. Because the rate is fixed, you'll pay the same fee no matter the final selling price. Many people prefer this method because it offers peace of mind. However, a possible disadvantage is a fear the agent will opt for a quick sale, even if that results in a lower price.

The tiered percentage option works on a sliding scale, encouraging agents to secure a higher sale price. For example, you may agree to a 2% commission rate if your property's sale price is $480,000 or less and an additional amount for a higher price. So, if the sale price is $500,000 you’ll pay 2% on the 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.

This method's premier advantage is that it incentivises the agent to secure the best possible price. The potential disadvantage is that you may pay more in commission than you had initially anticipated. But this is a Catch-22 situation, as a higher commission means the highest price for your property.

Now, while some NT agents include marketing and advertising 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 value is $500,000, budget $2000 to $5000 for marketing and advertising.

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

1. 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.
2. Print advertising, like property listings in local newspapers and magazines.
3. A for sale sign.
4. Professional photography and videography.
5. Flyer and brochure creation for open house inspections.
6. A social media campaign.

Most real estate agents will charge auctioneer fees on top of commission. This is the service fee for registered auctioneers on auction day and can cost between $200 and $1000.

Here are some other selling costs to consider when selling your property:

1. The conveyancing and legal costs of preparing your settlement contract can range from $700 to $1300.
2. If a mortgage remains when you sell your property, your bank will charge a mortgage discharge fee for the paperwork involved in discharging the mortgage. The fee varies depending on the bank or home loan lender, but it's typically around $1000.
3. It's best to budget about $800 for moving costs.
4. Capital gains tax.