When it comes time to sell your house, the cost may be high.
Real Estate agent charges can take a reasonably high chunk of your final selling price, so ensure you are prepared for this expense when working out your net balance after sale.
An example of Real Estate agent commissions in Queensland, based on the standard rate of 5% of the first $180,000 + 2.5% of the balance, plus GST, is:
|Selling price||Commission||Selling price||Commission||Selling price||Commission|
|$200,000||$ 5,995||$250,000||$ 7,370||$300,000||$ 8,745|
Commission rates in Queensland have a maximum rate set by law in the Property Agents and Motor Dealers Act.
The Queensland Government has set the commission for real estate agents at a maximum of 5% of the first $18,000 of the sale price and 2.5% of the balance of the sale price. 10% GST is also payable on the agent’s commission. Source: www.reiq.com
Some Real Estate agents also charge advertising fees on top of the above, but these should be advised to you before you sign a contract. I have personally NEVER been charged these extra costs, in four property sales in Australia.
The Real Estate Institute of Tasmania recommends, as a GUIDE only, these rates:
Sale price does not exceed $10,000: 11.04% with a minimum of $100
From $10,001 to $50,000: $1,104 plus 6.02% of excess over $10,000
From $50,001 to $100,000: $3,512 plus 4.22% of excess over $50,000
From $100,001 upwards: $5,523 plus 3.99% of excess over $100,000
New South Wales:
The amounts charged by agents are not set by law. (www.fairtrading.nsw.gov.au)
Rates can range between 2% to 3.5%.
Under Victoria law all commissions are negotiable between the real estate agent and the vendor. As a result, there is no standard commission. The REIV is also not allowed to suggest what a standard commission might be; to do so would contravene federal consumer laws.
It appears though that rates can vary between 1.6% and 3.0%.