Knowing real estate agents often work on a commission basis is a start, but do you know exactly how much to budget for when it comes to selling a Sydney property?
The fact is costs do differ between agencies, and there are other fees to be aware of when you’re choosing someone to take care of your property sale.
How much are average agent commissions in NSW?
It probably won’t surprise you to know that the average agent’s commission differs from state to state. Luckily for our clients, NSW has one of the lowest average commission rates in the county at just over 2%. This means that, on average, a seller will pay just over $20,000 in agent commission fees on a $1 million property sale.
While 2% is the average, Sydney commission percentage rates tend to drop as you move closer to the city centre. For example, a seller in Ryde is likely to pay a slightly lower percentage commission fee than someone selling a property in Blacktown or Richmond.
Fixed fee versus commission sales
There are agencies out there that will charge a fixed fee to sell your home, no matter what price it goes for. On paper fixed fee agencies can appear to be charging much less than you’d expect to pay through commission, but we still tend to caution against this approach. There’s always the risk you’ll end up paying more than necessary through costs that aren’t included in the fixed rate, and, of course, an agent working for a lower rate isn’t likely to go the extra mile to make the most out of the sale.
Other charges to be aware of
Agent commission fees aren’t the end of the story when it comes to selling. Other fees to factor in include legal fees, stamp duty and any money your agent might charge to market your property – including on real estate websites. So factor these into your budget and don’t hesitate ask prospective agents what other costs will be involved before you make your final decision.
It pays to shop around
Because agent fees and commissions do vary, it never hurts to contact a number of agents and compare costs. But keep in mind that a lower overall cost doesn’t necessarily mean a better deal. The most important factor in choosing an agent to sell your home is how hard they’re prepared to work to promote your property and reach the highest possible sale price.
Always look for agents with:
- a proven track record in terms of recent sales and client testimonials
- expert knowledge of your market and the changes you’re likely to see over the coming months
- great communication skills – your agent should never leave you wondering what the next step is in selling your home.
At Snowden Parkes, this emphasis on putting client needs first is part of our mission. We also work on a no sale, no fee basis, with no upfront marketing costs. If you’d like to discuss our fee structure and discuss how we’ll manage your sale, don’t hesitate to contact us.