Selling a home can be a stressful business, and it’s not always easy to figure out what constitutes reasonable real estate agent fees.
Real estate agent commission and fees 
Most estate agents operate on a commission basis. This means that you should not need to pay anything upfront to have an agent sell your property – the agent, like you, only gets paid once the sale is successful. If the realtor asks for a fee upfront, it would probably be best to steer clear of them.
It bears repeating – no reputable estate agent will ask you to pay them before the sale has succeeded.
What kind of commission should you expect to pay?
While real estate agent fees in Australia can differ from place to place, there are averages across regions. Tasmania’s 3.26% is the highest commission average, while South Australia’s 2.07% is the national low. The average real estate agent commission is in the vicinity of 2.22%.
Estate agents can set their own commissions, however, so an in-demand realtor with a very good track record may ask for a higher commission than one who is just starting out. The choice whether to pay the higher commission is always up to you.
You should research the agent before letting them list your property. You should also research property values in your area, to make sure that the price you are asking is reasonable for the area and the type of property you want to sell.
Don’t be afraid to shop around – it’s up to you to find the best combination of commission price and performance for you.
Flat Commission vs Fixed Rate vs Tiered Percentage
A flat commission means that your real estate commission will always be a set percentage of the sale price. Some people believe that this does not sufficiently motivate agents to seek the best possible prices, while others believe that a flat commission is the best option for all parties.
A fixed rate encourages quick sales, so if that’s what is important to you it’s a good option. It does take away some motivation for the agent to obtain you a better sale price, however, since their fee will not change if they get you a better deal.
A tiered commission means that the agent will receive a higher fee (as in, a higher commission percentage) if they sell your property for a higher price. While this means that you won’t have the control over the agent fees that you do with the fixed rate option, it does mean that the agent will be very motivated to get you the best price possible in order to improve their commission.
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