Sydney’s median house price has increased by 4% over the last year, with the median price sitting at $1,179,519 in December 2017. (Source: Domain Group House Price Report, December 2017).
Sydney’s property market has seen soaring house prices and unprecedented growth over the last few years, however cooling investor interest has become apparent in the Sydney housing market.
While the most sought after properties in Sydney are proving to be those with development potential, properties with lifestyle factors are important too, with buyers also showing a keen interest in both houses and apartments close to amenities such as schools and supermarkets.
What do real estate agents charge in Sydney?
Real estate agent commission fees in Sydney city are some of the lowest across Australia’s capital cities. While the average real estate agent selling fees in Sydney vary, the average commission rate sits at 1.84%. Compared to the overall New South Wales average of 2.02%, Sydney agents tend to charge lower commission rates.
It is a common trend for real estate agent fees to increase in areas further from the city centre, but it is unusual to see higher average fees in densely populated areas like Sydney CBD.
Some of the lowest real estate agent fees in New South Wales are located in Southern Sydney in the St George area, including suburbs like Banksia, with an average commission rate of 1.71% and Bardwell Park, with an average of 1.79%. Competition to enter the property market is fierce in Sydney, and high market activity can somewhat account for the low agent fees in these areas. However, it is worth mentioning that some neighbouring suburbs such as Punchbowl are attracting higher real estate averages of around 2.76%.
Real estate agent fees are deregulated in New South Wales, which means that the average commission rate charged by agents varies as they set their own rates. For this reason, despite average real estate fees, agents will charge commission depending on the types of services they provide, for example whether or not the commission fee includes marketing costs. This is something worth discussing with your agent before signing a contract.
Find out more about real estate agent fees and commissions across Australia.
What to consider when researching real estate agent fees in your area
Real estate agents charge different fees based on a number of factors, and certain areas across Sydney will generally exhibit lower real estate agent fees. To get a better idea of what agent fees are the norm in your area, compare several local agents.
It’s important to choose an agent that has a good knowledge of your local area including its features and amenities; whether you live in Penshurst or Darling Harbour, the right agent will know how to market the strengths of your property.
Sydney is a property hotspot, but when it comes to selling your property it’s important that you take your time when finding the right agent for you. Have a list of criteria and questions at hand and use that as a basis for comparing agents.
Are you curious about what real estate agents are charging in your neighbourhood? It’s now possible to easily compare a wide range of agents in your area to find the one who is right to sell your home. LocalAgentFinder is an impartial, online comparison service that compares local agents, notifying you of commission fees, experience and other criteria that are important to you. Take the first step to selling your home now.
To determine the average commission by capital city, LocalAgentFinder took the average commission of all active agents in each city respectively on 21 March 2018. This included agents with tiered and fixed commission structures based on a $500,000 selling price.
This article was updated on 11th April 2018