Can you negotiate fees and commissions in Tasmania?

Negotiations can be a tough time and that’s why it’s so important for you to have as much information as possible to ensure you are in the strongest position to negotiate. In a market like Tasmania, the final cost of your commission will depend a lot on your location. We know that Hobart for example is a more competitive market than that of more regional areas in Tasmania, meaning you’re likely to pay less in commission here.

Real Estate Agent Fees Tasmania

Real Estate Agent Fees in Tasmania

LocalAgentFinder provides you with the tools to compare and select the right agent to best suit your needs

A quick introduction to Tasmanian real estate agent fees

Tasmania, known colloquially as Tassie, is Australia's only island state. The whole state encompasses the main island of Tasmania (the world's 26th largest island) and the 334 surrounding islands. With a population of half a million people, the majority of Tasmanians live in Hobart, Launceston, Devonport, Burnie and Ulverstone. In recent years tourism and investment have soared in Hobart, Tasmania's capital and most populous city.

In the real estate industry, it's unsurprising that the property market is rising. Over the last 12 months, Hobart house prices have increased by 3.4%, which is a testament to the property for sale and tourism in the state's capital city.

How do real estate fees and commissions work in Tasmania?

Tasmania has some of Australia's highest commission fees. So if you're thinking of selling your property, it's now more important than ever to understand how commissions and fees work. Tasmania's real estate commission and service fee structure is deregulated. Deregulated fees give the agent the authority to set the price of their commission and fee structure in the way they choose. A few key factors drive real estate agent fees in Tasmania:

Supply and demand

Essentially, an agent will create their commission rate based on supply and demand. For example, when more agents are working in a certain area (like metropolitan areas), you can expect lower commission rates as agents compete for your business. On the flip side, the lower the activity in the property market (like in rural areas), the higher the fee will be. The lack of competition and lower selling prices allows the agent to set a higher commission.

Property value and type

A real estate agent's fees can also differ significantly depending on the region, suburb and property type. Most agents will ask for a higher commission if you're attempting to sell an unusual property. This is to compensate for the extra time and effort involved in the selling process and advertising such an exclusive property to a smaller set of potential buyers. Alternatively, if you want to sell a property with a big price tag, expect a big commission.

Experienced versus newer agents

You'll find that newer Tasmanian real estate agents may have a lower commission rate compared to experienced agents as they don't yet have the sales history or market knowledge. Before deciding on which real estate agent to choose, do your research via LocalAgentFinder to find a quality agent that ticks these three main boxes:

Has experience selling similar properties
Has comprehensive knowledge of the local property market
Offers a reasonable commission

Knowing the average commission rate for your state is a great guide for what you should be paying. However, it's also worthwhile getting a solid understanding of what is included in your commission and fee structure and what falls under each category:

Commission: It's common practice for agents to charge commission as a percentage allocation of the total selling price, whereas fees are normally an additional cost.
Fee: Common additional real estate fees outside of the commission rate include marketing costs and auctioneer fees.

Because Tasmanian commission rates are among Australia's highest, we recommend having an open conversation with your real estate agent and seeking full clarity on what costs fall under each term. This way, you'll be able to make an informed decision on what you feel is a fair commission and fee rate for selling your property.

What is Tasmania's average commission rate?

LocalAgentFinder research indicates that Tasmania has Australia's highest real estate agent fees, with the overall average commission rate sitting at 2.71%. This higher rate reflects the low level of competition amongst real estate agents. The below information shows how Tasmania compares to the rest of the country.

State	Ave. Fee
ACT	2.17%
NSW	2.01%
NT	2.49%
QLD	2.56%
SA	1.94%
TAS	2.71%
VIC	2.00%
WA	2.32%

From LocalAgentFinder Data Researched September 2022

Top tips for selling your house in Tasmania

At LocalAgentFinder , we make it our business to understand real estate trends to give you the most relevant information possible. We analyse data daily to find the most suitable real estate agent for thousands of Australian home sellers every month.

We've learnt some things over the years that may help you when you begin looking for the right real estate agent to sell your home.

Checking the history of your real estate agent before you make a decision provides you with relevant information on their abilities. At LocalAgentFinder, you can view sales history and independent homeowner reviews to help with your research.
When you hire a real estate agent, make enquiries about their marketing plan for your property. You should be 100% confident in your agent's ability to market your property to the right prospective buyers.
Use the average rate as a guide that gives you an idea of what you should be paying in your area. As mentioned, it's also important to consider other factors when coming to your bottom line, like your property's location and size, as they contribute to the final expense.

We know the current agent fees in Tasmania are less than attractive when compared to the rest of the country. But with the right agent, you're more likely to come to agreeable terms. LocalAgentFinder helps Tasmanian home sellers like you every day.

LocalAgentFinder's free comparison service

Here’s some more information about how we work:

We recommend the most suitable agents based on your needs, and then we deliver the list to you
Using the list, you contact the agents you feel most relevant to you. Our comparison service is completely anonymous and so the agents you decide not to contact will never know, saving you time
Don't fear hidden fees, as there are none. We're upfront about our costs as we don't charge consumers to use our completely free comparison tool service. Your chosen agent will pay us a referral fee only upon the successful sale of your property.

Finally, don't rely solely on commission rates to make your decision. Remember to consider other important factors like your agent's personality, history and passion for selling your property.

Can you negotiate fees and commissions with Tasmanian real estate agents?

Yes, you can negotiate commissions and real estate fees in Tasmania. Negotiations can be a tough time, and that’s why it’s essential to have as much information as possible so you're in the strongest position to negotiate.

In a property market like Tasmania's, your commission's final cost will depend heavily on location, location, location. For example, we know that Hobart has a more competitive market compared to regional areas, meaning you’re likely to pay a lower commission rate.

Knowing a real estate agent's service fee rate, commission structure, and previous local performance puts you in a great position to negotiate. LocalAgentFinder's leading online comparison platform, selling guide and agent questionnaires gives you access to this information and more.

How do you negotiate?

Once you've done your research via LocalAgentFinder and have a shortlist of local agents, follow these tips for effectively negotiating real estate fees and choosing the right agent to sell your property.

First, ask the real estate agents about their rates and commission structures and mention they're competing with other agents. If they're keen and know there are other agents competing for the sale, they might be more willing to "price match" a competitor.
Ask if the real estate agent is happy to use your preferred commission structure, whether that's a tiered or fixed fee. Tiered commission incentivises the agent to obtain the highest possible sale price.
Ask what the real estate agent's commission rate involves and whether there are additional costs to compare agents effectively.
Remember, you're better positioned to negotiate a lower rate if your property value is higher than average.
Don't leave without getting the real estate agent's fees and commission rate in writing.

What is fixed rate commission?

A fixed-rate or fixed fee commission rate means a home seller agrees to pay a set, predetermined amount to their real estate agent after their property sells. As the rate is fixed, you pay the same amount, no matter the final sale price. This method offers peace of mind as you pay the same fee regardless. However, the potential disadvantage is the fear that the agent will sell the property quickly, even if that results in a lower price.

What is a tiered percentage commission?

The tiered percentage option works on a sliding scale, which encourages agents to secure a better price. For example, you may agree to a 2% commission rate if the sale price is $480,000 or less, and an additional amount for a higher selling price. So, if the sale price is $500,000 you’ll pay 2% on the first $480,000 (being $9,600) and, for example, 10% on the additional $20,000 (being $2000). The total commission payable would be $11,600.

What are Tasmania's average real estate marketing fees?

Most agents charge advertising and marketing fees as an additional cost. So you know what to expect, request a breakdown of these costs beforehand. However, remember that marketing and advertising costs vary widely, depending on the campaign and your property's location. For example, if your property value is $500,000, budget $2000 to $5000 for marketing and advertising.

What's included in marketing fees in Tasmania?

Experienced real estate agents will create a print and digital marketing campaign that expertly targets prospective buyers. The more potential buyers that know your property is for sale, the better. Marketing and advertising costs should include:

Property listings (with floor plans and compelling copy) on real estate websites like realestate.com.au and domain.com.au. The copywriting should be compelling and entice people to view your property. Online advertising alone in Tasmania can range from $400 to $2000 for a premier listing.
A property listing in local newspapers and magazines.
A for sale sign.
Professional photography and videography.
Flyer and brochure creation for open house inspections.
A social media campaign.

How much are auctioneer fees?

Similar to advertising costs, most real estate agents will charge auctioneer fees on top of the commission amount. This is the service fee for registered auctioneers on auction day. Ask your agent for recommendations on an auctioneer who will use their skills to get you the highest selling price possible. In SA, the average auctioneer fee is currently $400.

What are home staging fees?

Home staging services include preparing your home for inspections, a professional photo shoot and auction day. It may involve simple styling tips or furnishing the entire property for the selling campaign's duration.

A good agent can either give you home staging advice themselves, generally as part of their commission, or connect you with local professional home stagers.

Home staging costs range from $2000 to $8000 depending on the level of service, property size and the campaign's duration. We recommend getting tips from your real estate agent as a first step and hiring a professional based on their recommendation.

What other potential real estate fees should you be aware of?

Here are some other fees to consider when selling your property:

Conveyancing fees. Yes, you need to hire a solicitor when buying and selling a property. The South Australian conveyancing process is quite complicated, with over 10 steps and the average conveyancing fee in SA is $800.
Mortgage discharge fee. If a mortgage remains when you sell your property, your bank will charge a fee for the paperwork involved in discharging the mortgage. Fees vary depending on the bank or home loan lender, but it's typically around $1000.
Moving fees. It's best to budget about $800 for relocating your furniture and worldly possessions, but this depends on the amount of furniture and where it's moving to.
Capital gains tax (applicable in some situations).