Real estate fees are deregulated in Western Australia, which means agents are free to set their own commission rates. Most real estate agents base their fees on supply and demand. In metropolitan areas like Perth, there's a stronger demand for agents. A higher population means more homes and more agents competing for your business.
This trend is also seen in reverse, as you'll find more expensive commissions in regional areas with less competition. It's important to note that Perth is a relatively small city, so competition isn't as high compared to cities like Sydney and Melbourne. This explains why we see a slightly higher average commission rate in Perth compared to bigger capital cities.
So, how can you ensure you are getting the best possible price for fees and commissions in Perth? Comparing local real estate agents via
is a good place to start and will help you understand how agents charge and structure their commissions.
Commissions and fees are terms that often get bundled together. However, the commission rate typically refers to the percentage allocation of the total cost of the property the agent sold. Fees are usually an additional cost and can include administrative and marketing costs.
It makes sense to define what exactly your agent intends to charge under these terms before entering into a contract, so there are no surprise costs down the line. The right real estate agent will be honest and upfront about all costs involved, including advertising costs and marketing fees.