In the Northern Territory, real estate agent commission rates and fees are deregulated. This gives local agents the authority to create the structure of their commissions and fees. The key factors driving an agent's commission rate include the following:
Supply and demand
Supply and demand refer to the volume of agents operating in the area and the level of competition. The higher the volume of real estate agents working in a certain area, the lower the commission.
In contrast, because you'll find lower selling prices, decreased competition, fewer agents and slower market activity in regional areas expect to pay a higher commission rate.
Property value and type
Real estate agent fees can also differ significantly depending on the region, suburb and property type. If you're trying to sell an unusual property, most agents will ask for a higher commission rate to compensate for the extra time and effort involved in the selling process. On the other hand, higher property prices typically equal higher commissions.
Experienced versus newer agents
A newer agent may offer a lower commission rate than an experienced agent as they still need to gain more first-hand selling experience and market knowledge. To find the
best agent to sell your property
, do your research via LocalAgentFinder to find the best real estate agent for you. You ideally want someone who has experience selling similar properties, has comprehensive local knowledge of the property market and offers a reasonable commission.
State average commission rates are a good guide for the estimated amount you should pay in fees and commissions when selling your property. In addition to the average costs of fees and commissions in the Northern Territory, it's advantageous to have a clear understanding of what each term means.
For example, fees usually refer to marketing and advertising costs and/or administrative fees. It's common practice for an agent to charge commission as the percentage allocation of the total sale price and for fees to be an additional cost.
What generally falls under commissions and fees can sometimes be a little unclear. We recommend having an open conversation with your real estate agent and seeking full clarity on what these terms mean and the expected deliverables.