Throughout South Australia, the fees and commission structure is deregulated. In short, deregulation means that agents are empowered to set the structure of how commissions and fees are charged. Several key factors drive what real estate agents charge when selling property, including:
Supply and demand
An agent's fees will depend on supply and demand. The more agents that operate in a certain area, the lower the commission is likely to be. For example, you can expect a lower commission rate in high-density urban areas like Adelaide compared to rural towns, where fewer agents are competing for your business.
However, the final sale price of houses in Adelaide is typically greater than in other places in SA, so Adelaide agents can afford to charge a lower fee. Meanwhile, agents in rural towns charge a higher commission to compensate for the lower selling price and the decreased competition in the market.
In general, an agent will do their best to offer competitive rates to ensure they can get business. Commission rates are also usually a negotiable factor with your agent.
Property values and type
If your property is unusual or expensive, most agents will ask for a higher commission to compensate for the extra time and effort involved in marketing such an exclusive property.
Experienced versus newer agents
Depending upon location and agency, newer real estate agents may have a lower commission rate compared to an experienced agent as they need the sales history and market knowledge (yet). Do your research via LocalAgentFinder to find a quality agent that has recent sales similar to your property, comprehensive local market knowledge and offers a reasonable commission.
It's a good idea to get an understanding of what other people in your area are paying in agent commissions and fees. While the average acts as a good guide, it's equally important to understand what exactly is included in the commission rate. Generally, an agent will charge a commission as a percentage fee of the total sale of your property, and fees will be an additional cost. This typically includes marketing costs and the auctioneer's fee
Clarity is best when dealing with the commission agents charge. It's always a good idea to be upfront and ask questions. Remember that your home is one of the most important and valuable assets you will sell in your lifetime. Speak to your agent and understand their costs to ensure you are getting the best possible deal for your personal circumstances.