Like the rest of the state, Adelaide commission rates are deregulated. This means that an agent who works in Adelaide is empowered to decide and create their own commission and fee structure. The market demand in Adelaide is higher and as a result there are more real estate agents who work in the city. This creates increased competition and we see a drop in commission rates averages as agents work to compete for business.
The location of your home in Adelaide and the property type will also have an effect on the total fee you will pay for commission. With this in mind, it makes sense for you to compare agents in the Adelaide market. Comparing local agents will help you understand how commission is charged and the variable factors that contribute to the final figure and the different ways in which agents will attribute various factors to commissions and fees.
It’s also a good idea to understand what an agent considers under the term “commission” and “fee”. It’s common to consider these terms as having the same of similar meaning but when it comes to selling your home, this is not the case. Here are some definitions that will help guide you:
Commission: This is the term usually referring to the percentage allocation of the total price of the property sold.
Fee: This is a term that is commonly associated with marketing, advertising and administrative costs.
Agents will have different allocations for both these terms so make sure you know what is included in this fee to help you understand the bottom-line figures. Real estate agents are usually willing to negotiate fees and commissions due to the competition found in the city, so you are in a strong position to negotiate.