How much is real estate commission?
Real estate commission rates in New South Wales, including Sydney, are not set by law.
This means you can negotiate with an agent about their real estate commission rates.
The real estate commission rates charged by Sydney real estate agencies can and do vary widely.
As a guide, agents real estate commission in Sydney generally range from 2 to 3.5%. This is a large range and is is a guide only.
On the Central Coast above Sydney we have been advised the real estate commission rate can be 2.7% plus gst plus advertising.
However, often real estate commissions are not the only fees to be charged to a prospective seller.
Vendors may also be charged other real estate fees such as marketing costs, auction campaigns and some real estate agents even charge prospective vendors a large upfront fee for marketing. As well as being charged realestate commission, sellers may also be asked for Vendor paid advertising or VPA as it is commonly known. These extra fees on top of the agents real estate commission can be many thousands of dollars.
We think it is essential to have a professional marketing programme that will allow a vendors property to be marketed in the best light. What we are not in favour of, is vendors being charged many thousands of dollars upfront for marketing a normal residential home. For this reason even the basic Bricks and clicks marketing campaign which charges a modest marketing fee, uses professional photography.
It is important to understand all the fees and charges you may be charged when selling your property.
We believe one of the best ways to sell a normal property is through a professional agent, using professional photography and a professional marketing campaign, for a low real estate commission.
Marketing aside, we are of the opinion you should never pay more than one percent plus gst real estate sales commission on the sale of your property. This should be the highest agents commission you should be charged when selling your property.
Further, you should never be asked for many thousands of dollars money upfront for Vendor Paid advertising when marketing by normal sale.