Real Estate Agent Fees in South Australia

Home to 1.7 million people, South Australia, also known as the Festival State or Wine State has a around 75% of the state’s population living in the state capital, Adelaide. In recent years, South Australia has shown strengthening signs in the property market. Investment opportunities, particularly around the Adelaide area are looking good in SA, recent upward trends show SA becoming popular with renters and buyers with good affordability and low rental rates.

According to LocalAgentFinder research, the properties that buyers are seeking are those with good lifestyle benefits; homes close to shopping districts, schools, and public transport are in demand. In terms of lifestyle benefits – the Mediterranean and arid/semi-arid climate found in the SA is attractive to many. South Australia has the lowest rate of commission and fees across all of Australia and this could mean that 2018 is a great year for you to sell.

How do real estate commission and fees work in SA?

Throughout Southern Australia, we note that 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. The ways in which an agent will do this will be dependent on supply and demand. The higher the number of agents that operate in a certain area, the lower the cost of commission is likely to be. In general, an agent will do their best to offer competitive rates in order to ensure they can get business. Commission rates are usually a negotiable factor with your agent.

It’s a good idea to get an understanding of what other people in your area are paying in commission and rate fees. An average will act as a good guide but it’s equally important to understand what exactly is included in your commission cost. In general, an agent will charge commission as the percentage allocation of the total sale of your property, where the fee allocation would sit outside of this. Sometimes a fee can cover the allocated costs of marketing or other administration costs.  

Clarity is best when dealing with commission, it’s a good idea to be upfront and ask questions. Defining how your agent charges and allocates monetary value to commission and fees is a good idea. Remember that your home is one of the most (and often for some people – thee most), important and valuable asset you will sell in your lifetime. Speak to your agent and understand their costs in order to ensure you are getting the best possible deal.

What is the average real estate commission rate in SA?

As noted, the average commission rate in South Australia is the lowest in the country. This is a strong indication of the volume of real estate agents operating in the country and the growth of relocation in SA.

The below data looks at average commission rates across all of Australia, with SA boasting the most noticeably lower average.

StateAve. Fees
ACT2.18%
NSW2.03%
NT2.43%
QLD2.62%
SA1.99%
TAS2.96%
VIC2.05%
WA2.45%

Regional areas with slower property markets, higher prices, and fewer real estate agents are often more likely to have higher real estate agent fees. While lower real estate fees are shown in city areas with lively property markets and a higher competition among real estate agents. In the case of SA’s capital Adelaide, the average commission rate in the capital is lower than Melbourne, Sydney and Brisbane at city 1.94%.

We recommend that while understanding averages in SA is great to help you make an informed decision, it’s not always a wise idea to make commissions the central deciding factor when choosing an agent. It’s a good idea to find a real estate agent who has more than just a good commission rate, you’ll want to find someone who’s confident, informed and an expert in their field.

Negotiating fees and commissions in SA

When it comes to negotiating fees and commissions in South Australia, rates are lower overall and so this tells us that competition is strong which puts you in a good negotiating position. In general, we note that more competitive rates occur in city areas compared to regional areas where competition is low, so agents can afford to structure a higher fee and commission approach. In Adelaide for example you should expect to find lower commissions rate due to the competitive market here. However, if you’re selling a property in a more rural area, you may be likely to pay a higher price.

The idea of commissions itself can also create some confusion. You may have some questions such as how exactly will my agent calculate my commission rate and how will I know if this is fair or normal? These are all valid questions. We’ll help you with averages to give you a guide of what is normal in your state. With regards to understanding how commission is calculated, generally speaking, an agent will do this in one of two ways.  

The fixed rate commission-based approach

The term fixed rate means you will agree to pay a specific amount after your property is sold and as the rate is fixed, it doesn’t matter what the final price is. Although you know exactly what you’ll pay, the potential disadvantage of this commission method may cause fear that the agent will sell the house quickly, even if that results in a lower price.

The tiered percentage approach

The tiered percentage option works on a sliding scale and this should encourage agents to secure a higher sale price. For example, you may agree to a 2% commission rate if the sale price is $480,000 or less, and an additional amount if the property is sold for more than that. So, if the sale price is $500,000 you’ll pay 2% on first $480,000 (being $9,600) and, for example, 10% on the additional $20,000 (being $2,000). The total commission payable would be $11,600.

Top tips for selling your house in SA

If you’re selling your home in SA this year, you can look forward to negotiating what may be amongst some of the lowest commission rates in the country. Selling your property is not always an easy task and as one of the most valuable things you own, it’s necessary to take every precaution possible to make sure you’re doing things the right way.

Here are some things we’ve learnt along the way to help you with selling your home.

  1. Only use these averages as a guide. We’ve done the hard work in terms of finding commission rate averages in your area to help act as a guide, but commission rates can vary depending on a host of other factors – your location (regional, metro), your property type etc. In addition, there are other factors you should be considering outside of commission when choosing an agent (for example, local knowledge and the sales history of agent).
  2. Ask more questions. As a rule of thumb, it’s a good idea to dig deeper when it comes to selling your property. Particularly when it comes to your agents marketing plan, as this will be a vital strategy used in selling your home. You should have every confidence in their ability to market your home to the right audience.
  3. Check the history of your potential real estate agent. It’s normal to check the work history of your agent and we provide the service for you at LocalAgentFinder. Finding out the work history of your agent will help inform your decision.

With lower commission rates currently accessible across Southern Australia, you may want to start the search for your real estate agent sooner. The good news is, the best agent for the job may be just around the corner. Here’s some information about how we work to help you understand a little bit more about LocalAgentFinder.

  • We recommend the most suitable agents for your sale requirements
  • The comparison service is completely anonymous, so those who you don’t contact will never attempt to get in touch
  • Hidden fees may be a concern when selling your house and the good news is that LocalAgentFinder is completely free for you. The agent you choose will only pay LocalAgentFinder a referral free after successfully selling your property.

Getting the right information will help you make the right decision when it comes to choosing a real estate agent to sell your home. It’s a good idea not to solely rely on commission rates to make your decision, but also take into consideration other important factors like your agent’s personality, their history and the passion they have for selling your property. Need a helping hand? Take a look at LocalAgentFinder today and see if we can help. We also have a fully operational Australian based call centre, so if you have any questions, give us a call on 133 033.  

Fee & Commissions by State

To determine average commission rates, LocalAgentFinder took the average commission of all active agents respectively on 1 May 2018. This included agents with tiered and fixed commission structures based on a $500,000 selling price. This page was updated on 4th May 2018.

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