Tasmanians Pay the Highest Agent Commissions in Australia
Perhaps one of the biggest mysteries of the real estate sales process is how much agents charge in commissions and fees. The national average, as we’ve previously written, is 2.41 percent, but that figure varies wildly, depending on which state or territory you live in, the value of your home, and the type of property you’re selling. While South Australia has the lowest agents fees and commissions (around 2.07 percent, on average), Tasmanians have long paid the most in agent fees and commissions, which edge up to an average of around 3.26 percent.
It’s worth noting that, by law, the Act governing real estate in Tasmania used to publish the recommended scale of agent fees and commissions, until 2005, when the new Property Agents and Land Transactions Act 2005 was introduced and the scale of agent fees and commissions was discontinued. Although real estate agent fees and commissions in Tasmania are, the Real Estate Institute of Tasmania (REIT) publishes its own guide to REIT member fees and commissions, to be used by consumers and agents as a guide only.
REIT Recommended Scale of Fees
Although the REIT scale of fees and commissions, sets out the charges for a number of different real estate services, such as leasing and managing property, commercial leases and the sales of businesses, for the purpose of this blog post we’re just going to concentrate on the fees for selling a residential property.
Where the purchase price:
Does not exceed $10,000 11.04% with a minimum on $100
From $10,001 to $50,000 $1,104 + 6.02% of excess over $10,000
From $50,001 to $100,000 $3,512 + 4.22% of excess over $50,000
From $100,001 upwards $5,622 + 3.99% of excess over $100,000
In Hobart, the median house price is $352,000, while the median unit price is $256,000, according to data collected by Domain Group. This puts the average commission payable to an agent for the sale of a house at around $15,676 and a unit at $5,628. These figures, unlike the fees and commissions for agents in most other states are also inclusive of GST.
Agent Fees May Still Be More or Less
It’s a good idea to keep in mind, however, that those fees, while accurate at the time of publishing, may vary from agent-to-agent. In Burnie, for instance, agents can charge as much as 4.82 percent to sell property, of course it helps to know that Burnie has the highest rates of joblessness and social issues in the country, with its unemployment rate currently sitting at 21 percent. Selling property in this part of Tasmania, then, will be extremely difficult, and so that’s reflected in the commission you’ll pay.
If you’re in Tasmania and you’re looking for an agent to sell your home, your first port of call should be the REIT member agents in your area. Research their sales history, and then ask them how much they’ll charge you in commission to sell your home. Remember that you’re still able to negotiate an agent’s commission, especially if it varies greatly from the REIT’s scale of fees and commissions. Don’t forget to shop around and speak with a number of agents in your area.
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