Traditionally in Australia, agents have charged commission when they sell a property, which is calculated as a percentage of the property’s final sale price. Now, some real estate agents are charging a fixed fee for managing the sale of a property, which isn’t impacted by the sale price.
- Using a fixed-fee agent could save you money when selling your house, for example:
- If you sold a $1 million property in Sydney where the average commission is 2.01%, you’d be looking at paying just over $20,000 in fees to your real estate agent. Most fixed-fee agents charge between $7,000 and $10,000, which is significantly cheaper.
- However, commissions can vary considerably depending on the location and value of the property, so a saving isn’t guaranteed
- Also, a commission-based agent has an incentive to sell your property for the highest price – which could lead to a better return even if the cost is higher
- Don’t focus solely on an agent’s fee structure – do your research to find one with local market knowledge and a solid track record