Average real estate agent fees & commissions in Victoria
When selling their property, many homeowners don’t realise just how many hidden costs are associated with putting a home on the market. As such, sellers are often caught by surprise when the real estate agent assisting them with the sale of their house mentions marketing costs, home staging fees and the like.
Of course, a seller in Tasmania won’t pay the same amount for these services that a seller in Sydney might. This is because there are no set rates for services in the real estate industry – and this includes estate agents’ commission, which is also deregulated in Australia.
These fees may, in fact, also even wary widely within the same state, and there are often differences between what agents and service providers charge in more rural regions, when compared to metropolitan areas.
Real estate commissions in Victoria
When using a real estate agent to help you sell your property, paying a percentage of commission based on the price the home ultimately sells for comes part and parcel of accessing the services offered by agents and agencies. Commission structures may be either fixed or tiered, depending on what is agreed upon with your real estate agent, prior to them initiating the marketing of the property.
In Victoria, home sellers can expect to pay an average of between 1.6% and 2.5% of the ultimate selling price to their real estate agent in commission fees, although commission rates differ across the state. In Melbourne, for example, sellers pay an average of 1.96% in commission, while the average commission rate in the port city of Geelong is 2.23%.
Despite property values typically being lower in regional areas, the commission paid to real estate agents following the sale of the property tends to be higher than it is in metropolitan areas. The reason for this difference in commission rates boils down to the availability of real estate agents. When there are more agents vying for business, commission rates are driven down due to competition between agents and agencies, while fewer agents in the countryside means that they have more leeway to charge what they want in terms of commission – it’s simple supply and demand.
When paying commission to a real estate agent, home sellers aren’t only paying for the marketing of the property, but they also gain access to various other perks. Real estate agents have spent their entire professional lives navigating the tides of the property market and understand the world of real estate in a way that us mere mortals simply don’t. Add to this that you’ll be getting access to a large database of potential buyers and an all-inclusive service, which also means you won’t have to try and understand the difficult legal jargon in the significant paperwork associated with selling a property, and the amount that is paid in commission seems far too small.
Real estate marketing fees in Victoria
When interviewing real estate agents, it is important to gauge exactly what is included in their service offering. Some agents will count marketing fees as a part of their commission, while others will charge for marketing separately, and in addition to the agreed-upon percentage of commission.
Marketing a property includes listing the property on real estate websites, as well as in print media like magazines and newspapers, and on social media. Real estate agents will provide a signboard, which is traditionally put up in front of the property, and will also be in charge of creating and printing brochures and flyers that can be handed out at the open house. As professional videography and photography of the property is essential if the home is to be put in the best possible light and create a great first impression among potential buyers, this will also form a part of the marketing of the property.
In Victoria, the average marketing cost associated with the sale of a property may range from $500 to $2000, depending on the type of marketing plan chosen and how long the property is marketed for.
Home staging fees in Victoria
The staging of the home refers to decorating and styling it in a way that appeals to the largest group of potential buyers. This is done by removing all sentimental and quirky décor in favour of a more neutral palette, and arranging furniture in a way that puts all the rooms in the best possible light.
While home staging needn’t be done by a professional and can be undertaken by the home seller or by their real estate agent (who knows exactly what type of look puts off and appeals to prospective buyers), home staging services are offered by professional companies as well.
In this regard, home staging costs in Victoria range from $2000 to $8000 (usually including an initial consultation fee of between $150 and $500). Costs vary, depending on the size and amount of rooms of the property, the level of service provided, and the amount of time that the property is staged for.
Auctioneer’s fees in Victoria
Some home sellers decide to take their property to auction instead of going the traditional route of advertising it to private buyers. Selling a home through auction can come with a number of benefits for the seller, including marketing to serious buyers and knowing exactly when the property will be sold. Auctions also let the focus fall on their specific property, instead of it being just one in a sea of others on the market. Should a bidding war ensue between buyers, chances are that the home could ultimately fetch a better price than it would, had it been sold in the traditional way.
If sellers in Victoria go for this option, they can expect to pay between approximately $200 and $1000 for the services of a qualified auctioneer.
How do real estate fees in Victoria compare to the rest of Australia?
The location of a property has a central part to play in what it will cost to ultimately get the property sold. As mentioned earlier, the commission a real estate agent is paid for their services may also vary widely between regional and metropolitan areas. It makes sense, then, that commission rates are also quite varied in the different states of Australia. When compared to other Australian states, commission rates in Victoria are among the lowest in the country.
While home staging fees are quite similar across the board, Victoria’s marketing fees are in line with what is being charged in Queensland and New South Wales, but are higher than the fees sellers in Western Australia, the Australian Capital Territory, South Australia and Tasmania would pay.
|State||Average percentage of agent’s commission||Staging fees||Marketing fees|
|Australian Capital Territory||2.5% – 4%||$2000 – $8000, depending on the duration of the staging and the size of the property||$100 – $800|
|New South Wales||1.8% – 2.5%||$2000 – $8000, depending on the duration of the staging and the size of the property||$600 – $2000|
|Queensland||5% on first $18,000, 2.5% thereafter||$2000 – $8000, depending on the duration of the staging and the size of the property||$600 – $2000|
|South Australia||2% – 2.75%||$2000 – $8000, depending on the duration of the staging and the size of the property||$500 – $1000|
|Tasmania||3.25%||$2000 – $8000, depending on the duration of the staging and the size of the property||$400 – $800|
|Victoria||1.6% – 2.5%||$2000 – $8000, depending on the duration of the staging and the size of the property||$500 – $2000|
|Western Australia||2.44% – 3.25%||$2000 – $8000, depending on the duration of the staging and the size of the property||$400 – $1000|
Real estate agent’s commission, the marketing fees of a property, home staging costs and auctioneers fees in Victoria can vary widely, even within the state.
Whilst real estate agents in cities like Melbourne might charge similar amounts of commission, these percentages are quite a bit lower than their counterparts in the countryside are charging. As is the case in every industry, supply and demand are at play – and when there are more agents vying for the attention of home sellers, it stands to reason that they will have to lower their commission rates if they are to do business.
With that being said, what sellers gain in commission, they may well pay in marketing fees and other voluntary costs that help properties to sell, depending on where they are selling.
Many real estate agents come with all the skills and contacts in tow, though, which is why sellers should never deem the amounts they pay real estate agents unnecessary. In fact, a trustworthy, experienced and qualified real estate agent is simply the most important expense home sellers are likely to incur as they set out on getting their property from “for sale” to “sold”. Still haven’t found an agent that understands your needs and suits your pocket? Let Perfect Agent recommend a number of agents to choose from, at no cost to you! Simply complete a quick questionnaire and tell us what you are looking for.