Real Estate Agent Fees in Melbourne
Melbourne’s median house price has increased by 11.3% over the last year, with the median price sitting at $903,859 in December 2017. (Source: Domain Group House Price Report, December 2017).
In terms of buyer interest, the most desirable properties are those located close to amenities such as schools, supermarkets and shopping hubs, while properties with development potential are becoming increasingly popular.
What you need to know about real estate agent fees in Melbourne
Real estate agent fees in both Victoria and Melbourne are some of the lowest in Australia. The average real estate agent commission rate across the state sits at 2.03%, while the average agent commission rate in metropolitan Melbourne sits at 1.98%. Average real estate agent fees are influenced by a range of factors, and vary depending on a suburb’s location, and proximity to services, amenities and lifestyle interests.
In Victoria, agent fees are deregulated, meaning agents can set their own commission rate, and fees are driven largely by free market competition. The densely populated inner city areas, which have a higher number of agents servicing them, and where properties are typically the most expensive, generally have the lowest real estate agent fees. Outer metro areas however, tend to have the highest agent fees, fuelled by sparser population, less demand, and fewer agents in operation.
Melbourne East, Melbourne West and Melbourne North, and Melbourne Bayside all have average commission rates below 2%. This is due to increased competition in these residential areas. Melbourne’s most popular, and fastest growing suburbs see agents charging some of the lowest fees.
Real estate agent commission rates start to creep in suburbs located 15–25 kilometres from the Melbourne’s CBD. Suburbs such as Oakleigh, Glen Waverley and Wheelers Hill are attracting a range between 1.8%-2.25%. Further out, suburbs like Sunbury and Lilydale, over 30 kilometres out of Melbourne, peddle even higher real estate agent fee ranging between 2 and 2.5%. This trend continues the further out you are, with average agent commission rate ranges climbing as high as 3% in some areas.
While there is a clear correlation between proximity to the Melbourne CBD and average real estate agent fees, rates will vary from suburb to suburb, and there are exceptions on both ends of the scale. To properly understand what agents are charging in your area, it’s worth comparing commission fees from a range of local agents.
Find out more about real estate agent fees and commissions across Australia.
What to consider when researching real estate agent fees in your area
A real estate agent’s fee is certainly a key consideration when selecting an agent, however it should not be the only one. Agents base their fee on a range of criteria, such as their experience, marketing strategy and expertise, and these factors should be researched and considered with equal weight.
Real estate agent fees across Melbourne will generally be lower the closer your property is located to the CBD. In order to get a good idea of agent fees in your suburb and what services they can offer you, it’s worth comparing several local agents.
Proximity to amenities, like local schools and shopping centres are among buyer’s top priorities, so it’s important to select an agent that has a deep local knowledge of your area and its features.
Want to find out exactly what agents are charging in your area? LocalAgentFinder is an impartial, online comparison service that lets you compare a wide range of local agents to find the agent that’s right for you. Get started now, so you can make the right decisions, right from the start.
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