FOR SALE: $900,000, 2 Lyngold St, Woodridge
Queensland landlords are paying the highest estate agent commission rates in the country, with new data showing sellers in some parts of the state are being charged almost 4 per cent to sell.
A report from agent comparison service bRight Agent found Queensland’s average agent commission rate stood at 2.8 per cent, above the national average of 2.65 per cent, based on data from more than 200 postcodes across the country.
The data showed that the cheapest funds in Queensland were concentrated in regional areas, led by Ingham in Far North Queensland, where the average commission was 3.75%.
Other Queensland hotspots include Gracemere at 3.40 per cent, Kingaroy at 3.35 per cent, Maryborough at 3.25 per cent, and Proserpine at 3.20 per cent.
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FOR SALE: $1,455,500, 413 Snooker St, Bracken Ridge
Across Greater Brisbane, the highest rates were recorded in Woodridge at 3.15 per cent, Springwood at 2.8 per cent, Goodna at 3.05 per cent, and the City of Ipswich at 2.9 per cent.
Those prices translated into commissions ranging from $9,937 in Ingham to $28,025 in Airlie Beach.
Across Brisbane’s north and inner suburbs, commission rates were generally lower but still strong, especially when factoring in higher local house prices.
Bracken Ridge was at 2.6 per cent or $23,920, Sunnybank 2.52 or $36,540, and Coorparoo 2.5 – $41,250.
On the Sunshine Coast, Buderim recorded 2.55 per cent, while Trinity Beach in Cairns sat at 2.6 per cent.
FOR SALE: $1.327m, 8 Plateau Rd, Springwood
bRight Agent founder Aaron Scott said the report gave homeowners a clear measure to compare prices in their area and negotiate with more confidence.
“Selling your home is one of the biggest financial decisions you’ll ever make, yet commission fees are still one of the most obvious parts of the process,” says Mr Scott.
“Even a small reduction in commission can put thousands of dollars back in the seller’s pocket, which is especially important when you’re selling under financial pressure.”
The Real Estate Institute of Queensland (REIQ) said there is no standard or recommended level of commission in the state.
REIQ CEO Antonia Mercorella said agents need to ensure that the commission is clearly disclosed, and that the customer fully understands the amount that is likely to be paid and when it must be paid.
“Agents can negotiate a commission with their client, depending on the value of the property,” said Ms. Mercorella.
FOR SALE: $3.27m, 61 Sirius St, Coorparoo
“For example, a higher commission may work in a lower quality area because it has to be efficient and consistent with the time and resources needed to sell it.”
Mr Scott said high commission rates were often driven by weak competition between agents in regional and remote areas.
“Our statistics show that regional and remote areas pay much higher real estate commission rates than major urban centers,” he said.
“Without strong competition, homeowners cannot shop around for better prices, so they are forced to pay higher prices.”
The report highlighted the differences between states, with Queensland sitting above New South Wales and Victoria, where average rates were 2.35 per cent, while the ACT was the lowest at 2.23 per cent.
FOR SALE: $615,000, 11 Madison Rose Dr, Gracemere
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It comes amid anecdotal claims agents are cutting their fees more often in a tighter listing market, as they compete more for scarce stock.
But Ms Mercorella said experienced agents should not be expected to cut their fees or sell “expertise, market knowledge and negotiation skills”.
“The old saying you get what you pay for applies here,” he said.
“You may pay a higher commission to get a better agent, but that decision may put you in a better position based on a higher number of sales.”
FOR SALE: $440,000, 18 Mahoney St, Ingham
Ms. Mercorella said many real estate agents underestimate the high costs involved in running a real estate business.
“Overheads can include franchise fees, management and support staff salaries, brick-and-mortar office costs, insurances … and marketing agencies and agents.”
He said compliance requirements also create “hidden costs” for agencies.
“Historically, we’ve seen a lot of types of businesses with low or fixed fees come and go because if you look at the most important things to run a real estate business, it’s not sustainable.”
