THE QUES­TION OF COM­MIS­SION

Midland Reporter - - News -

COM­MIS­SION is of­ten a bone of con­tention for prop­erty sell­ers but WA agents’ fees are not the high­est in the coun­try, ac­cord­ing to a pop­u­lar agent re­fer­ral site.

A sur­vey by Lo­calA­gen­tFin­der found WA sell­ers paid an av­er­age com­mis­sion of 2.31 per cent of the sales price, be­hind Tas­ma­nia at 3 per cent and Queens­land at 2.61 per cent.

South Aus­tralian sell­ers paid the low­est com­mis­sion of 2 per cent, with a na­tional av­er­age of 2.07 per cent in June.

Lo­cala­gen­tfin­der chief ex­ec­u­tive Matt McCann said the WA re­sults were in­ter­est­ing given the state of the mar­ket.

“Un­like the eastern se­aboard, WA has been ex­pe­ri­enc­ing a down­turn in the hous­ing mar­ket over the last cou­ple years,” he said.

“In some parts of WA, I would ex­pect that agents are low­er­ing com­mis­sions in order to com­pete in a down­ward mar­ket.

“On the other hand, other agents may be charg­ing a higher com­mis­sion be­cause they have to work harder to sell prop­er­ties in the slow hous­ing mar­ket.”

REIWA pres­i­dent Hay­den Groves said while the WA fig­ure seemed rea­son­able as an av­er­age, com­mis­sions var­ied from agent to agent and sale to sale.

“Some agents charge a per­cent­age; oth­ers do a flat fee or tiered struc­ture,” he said.

“Some sales are more in­volved so the com­mis­sion may be jus­ti­fi­ably higher. At other times, it may be ap­pro­pri­ate to of­fer a lower fee.”

Mr Groves said com­mis­sions were ne­go­tiable.

“Agents are obliged un­der law to in­form clients that fees are ne­go­tiable, so sell­ers can ask if that is their best rate,” he said.

“Some agents will say that ‘this is my fee and if you want me, this is what I charge’ and it is then up to the seller to de­cide if they want that agent. There’s no such thing as a com­mis­sion that’s too high. It de­pends on the cir­cum­stances.”

Rather than choose an agent based just on the fee, Mr Groves said sell­ers should ask the agent what they did for their com­mis­sion.

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