Real Estate Agent Fees in TAS
Tips on shortlisting agents
There’s a lot to think about when it comes to finding the right real estate agent in Tasmania. You’re not only finding someone to handle the sale of your property, but also someone to represent you and, what is most likely, your largest financial asset. Hence, choosing an agent is not a decision to be taken lightly.
One thing to look out for when finding a suitable agent is local knowledge and experience. A good agent should know their serviced area like the back of their hand. They should always be up to date on how the local market is performing and be well informed about all the facilities in the area.
"A good agent should know their serviced area like the back of their hand."
It’s also beneficial if they particularly specialise in your type of property. Some agents, for example, are specialists in apartments and only handle properties of that category.
Another thing to consider is the overall cost of the agent’s services. Paying your agent is a crucial part of the house selling process, so it’s of utmost importance that you know how everything will add up. When it comes to agent expenses, costs are generally broken down into two main categories - fees and commission.
Fees are there to finance the marketing and advertising campaigns. They’re usually a set payment that covers the cost of high-resolution photos, flyers, online advertisements and other materials needed to market your property. You can expect fees to set you back anything from $500 for a basic package, to any amount in the thousands for a comprehensive campaign. As a general rule of thumb, however, it’s recommend for vendors to budget approximately 0.5% to 1% of the total property value for marketing and advertising.
On the other hand, commission works a little different. It’s calculated as a percentage of the total cost of the property selling price and is what an agent is paid for successfully selling your property. Unlike marketing and advertising fees, there are many variables that influence the commission charged to a vendor. The population density and urbanisation of an area, for example, are major factors that impact commission. Regional areas, as a result of its lower levels of competition, fewer customers and smaller markets, tend to have higher rates. But metropolitan areas, on the other hand, have lower commission rates due to its saturated markets, increased supply and increased demand.
On a national scale, the lowest commission you'll find will approximately be 1.6%, while the highest will be around 4%. With this in mind, the average charge for Tasmania currently sits at about 2.96%.
This means if you sell your house for $500,000, then commission billed at an average rate will cost you $14,800.
Despite this, not all agents structure their commission and fees the same way. Some will include advertising and marketing costs into their commission rate and therefore quote a percentage a little higher to cover the expenses.
Another structure that you’re likely to come across is ‘tiered’ or ‘sliding scale’ commission. It offers agents a certain percentage of the property sale price up to a certain amount and a higher percentage for anything above it. For example, 2% on the first $600,000 and 5% on anything more. The idea is that it rewards agents for achieving high sale prices and incentivises them to work hard for you. Tiered commission rates are particularly popular in urban areas where real estate markets are dynamic and competition is rife.
Clearly, there are a lot of possible options when it comes to fees and commission, but for good reason - commission structures are intended to be flexible. It allows room for vendors and agents to negotiate, as there are no longer any government regulations regarding commission in the real estate industry.
"Clearly, there are a lot of possible options when it comes to fees and commissions, but for good reason - commission structures are intended to be flexible."
To estimate how much commission you could be paying for the sale of your home, try using our handy commissions calculator. Or to find out more about commissions and how to negotiate, take a look at our commissions guide.
Real Estate Agents in TAS
There are a lot of real estate agents in Tasmania, so it can often be difficult to make the right choice. But don’t worry, we’re here to help. With over 1339 reviews on 134 agents, our site makes it easy to compare agents in your area. We can help you not only find an agent that charges a fair commission, but also strives to get you the best possible price for your property.
As with all other states, the property market in Tasmania varies by location. However, being the state’s capital city, Hobart has the most active landscape. Saturated markets, such as Hobart, generally harbour lower commission rates due to the heightened competition between agents and increased supply and demand. Within these areas, you can expect commission rates to sit between 2.5% and 3%, while in rural and semi-rural areas you can expect a slightly higher commission range between 3% - 3.5%.
Given all this, the average commission rate in Tasmania is currently 2.96%. Keep in mind, however, that area is not the only factor that will determine an agent’s commission. Experience and proven track records on delivered promises will also have an impact and can result in agents charging more for their services.
Why OpenAgent is different
OpenAgent was born out of a need to fill a gap in the Australian real estate landscape. Sellers these days want more information on agents and the property selling process so that they can make the most informed decisions possible when transacting their largest financial assets. Despite this, doing all the research can be a difficult and time-consuming task.
To tackle this problem, OpenAgent has collected information on real estate agents across Australia to help sellers condense the research into a much shorter process. Think of it as a directory that’ll allow you to compare agents side by side. The best thing? It’s completely free!
How it works is when a property is sold, the real estate agent pays OpenAgent an industry standard referral fee of 20% of their commission. Our goal as a company is to provide a forum where customers and agents can all benefit from our services. Sellers get access to a personalised customer experience to help them find the right agent, while agents are rewarded for their honesty, integrity and exceptional sales abilities with online promotion and continuous business growth.
"Our goal as a company is to provide a forum where customers and agents can all benefit from our services."
To make this all happen, our team at OpenAgent is comprised of experts from a diverse range of backgrounds, including ex-real estate agents, designers, IT wizards, marketing specialists and business professionals.
Find Agents in TAS
It doesn’t matter what area you’re considering, OpenAgent can take the hassle out of researching for and comparing agents in Tasmania. Our search function allows you to view top agents in a particular area based on sales, average listing prices, reviews as well as customer testimonials. It’s our mission to help you make the most informed decision possible when choosing an agent.
For any questions regarding our service, feel free to contact us directly at OpenAgent on 13 24 34. As Australia’s number one real estate agent comparison website, we can help you sell your property for the best possible price.
Are cheap agents worth it?
Finding bargains and low prices are tempting - let’s make no mistake - but choosing an agent shouldn’t be solely dependent on commission rates. It’s not quite as simple as trying to score the best sale at a shop. With real estate, you’re better off selecting an agent who has successfully handled your particular property time a number of times and has a proven track record in the area they’re based in.
Although they might come at a slightly higher price tag, paying a little extra commission for experience and assurance will save you the hassle and heartache of a regretful sale in the long run. It’s like most things in life: you get what you pay for.
"Although they might come a slightly higher price tag, paying a little extra commission for experience and assurance will save you the hassle and heartache of a regretful sale in the long run."
Negotiating fees with agents
Once you’ve shortlisted your 2 or 3 agents using OpenAgent’s free service, the next step is to conduct face-to-face interviews to find out more about each agent, their fees and how they work. Here are our tips for negotiating with an agent to get the best deal for you.
A good place to start is by asking agents about their commission structures. This will help you to compare their fees and services with other agents that you’re interviewing.
If you want a suburb record sale for your property, don't expect an agent to significantly lower their commissions. Record prices require a lot of hard work, especially in terms of running comprehensive marketing campaigns, open homes and buyer follow-up activities successfully.
Consider implementing a tiered or sliding scale commission structure. It’s a great way to incentivise an agent to go above and beyond for your property.
As previously discussed, don’t just look for the cheapest commission. Experience, skills and assurance don’t come cheap.
Marketing and advertising may or may not be included in an agent's commission rate, so it’s always a good idea to ask and go through the terms and conditions of the agreement with your agent. This will help you to have a clear understanding of the partnership and what expenses are covered in the fees.
If your property is in a particular dynamic or saturated market, expect to see lower commission rates than region areas. The higher supply and demand, higher median prices and increased competition mean agents not only have more wiggle room to compete against each other, but they can also earn a sustainable income.
Because commissions are unregulated in Australia, be sure to negotiate with your agent a rate that’s suitable for you and your property.
Lastly, be sure to ask for all fees and costs in writing from the start of the process. A reference point will allow you to look back on the terms and conditions of your agreement and prevent nasty surprises from leaving you high and dry when it comes to selling time.
Are you ready to interview agents? Take a look at the essential questions that you need to ask to find the right agent for you in our handy interview checklist.
Don't have the time to start interviewing agents?
Don’t have time to interview agents? Don’t worry, we’ve got you covered. Here at OpenAgent, we offer free agent pre-screening services to take the stress out of doing agent research and help you narrow down your options as quickly as possible.
Final cost tips
Before you draw up the all-important budget, here’s a quick guide to help you estimate your overall costs. Being informed from the very start can prevent nasty surprises from springing up later on down the track.
Advertising and marketing fees
As previously stated, not all agents will include their marketing and advertising costs into their commission. For this reason, it’s important to find out what kind of structure your agent uses, so that you can factor it into your budget and better prepare yourself.
It’s generally recommended for vendors to spend between 0.5% to 1% of the total property value on marketing and advertising. This means if your home is valued at $500,000, your recommended budget would be between $2,500 and $5,000.
Some agents might offer discounted marketing campaigns, but if fees end up less than $1000, don’t expect anything more than a simple online listing. Great campaigns that create buzz around your property and have a big reach will come with a higher price tag. To find the most interested buyers and achieve an excellent sell price, it’s wise not only to invest in a top agent, but also in a comprehensive marketing campaign.
"To find the most interested buyers and achieve an excellent sell price, it's wise not only to invest in a top agent, but also in a comprehensive marketing campaign."
Unconditional commission is very common and it’s something you need to be wary of. Many real estate agent contracts state that once a sale is complete, the commission payable will be unconditional. This means that, even if the sale falls through, you’ll still be liable to pay your agent the commission. To cover yourself, it’s a good idea to make sure your deposit covers the figure of your agent’s commission.
One measure you can take to prevent nasty surprises, such as this, from happening is to have a solicitor review all agent contracts prior to signing to make sure that all clauses are reasonable and fair.
Don’t forget to include GST into your budget. A 10% tax is required on all real estate transactions. This is in addition to any real estate commission charged.
Capital Gains Tax
A CGT Tax applies to the sale of any property that you don’t live in - for example, investment properties, industries properties or commercial premises.
CGT generally doesn’t apply to dwellings that you’ve lived in as an owner occupier. But the factors that define this include the location where your mail is delivered to, where you are registered on the electoral roll and where all of your personal belongings are kept.
If you’d like to take your property to auction, you’ll need to pay the auctioneer. Most real estate agents are not registered auctioneers, so this cost will need to be considered as a separate fee to your agent’s payment.
On average, auctioneers costs around $400.
Other selling costs to consider
Conveyancer or solicitor fees
A lot of people are surprised to learn that a conveyancer or solicitor is needed not only when you are buying a house, but also when you are selling. The legal process that needs to be completed is the same at either end of the transaction.
You should set aside at least $800 to pay a conveyancer or solicitor.
Mortgage discharge fee
If you have a mortgage on your house when it comes time to sell, you will usually be charged a discharge fee by your bank for the paperwork involved in releasing the mortgage.
These fees vary between banks and home loan terms, but as a general rule, $1,000 is a good estimate.
If you’re not planning on making any major renovations to your property before you sell, it’s still a good idea to leave some room in the budget for a last minute minor makeover.
Small adjustments like changing handles and taps, planting new foliage, repainting walls and fixing cracks will help make a good impression on your audiences and ensure your property is looking its very best.
For this, it's recommended that you set aside $1000.
For more information and ideas on how to prepare your property for the market, take a look at our comprehensive renovation guide.
After you sell your house, it’ll inevitably be time to get moving. Hence, you’ll need to factor in the costs of moving into your budget.
Unless you have 5 friends who own utes, it will generally cost about $800 to hire a removalist.
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