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Perth is both the capital and largest city in Western Australia. Most of the city's population is located in the metropolitan area of Swan Coastal plain. Perth is home to Western Australia's major arts, cultural and educational institutions, including the Art Gallery of Western Australia and the Perth Institute of Contemporary Arts. Perth's lively culture is just one of the reasons people relocate here every year.
Western Australia's mining sector downfall has had a knock-on effect on the Perth property market. Many are seeing the mining sector chaos as a great opportunity to jump onto the Perth property ladder. Western Australia ranks as one of the most expensive states regarding average commissions and fees, but Perth's real estate industry falls in line with what we'd expect in an Australian capital city.
Real estate fees are deregulated in Western Australia, which means agents are free to set their own commission rates. Most real estate agents base their fees on supply and demand. In metropolitan areas like Perth, there's a stronger demand for agents. A higher population means more homes and more agents competing for your business.
This trend is also seen in reverse, as you'll find more expensive commissions in regional areas with less competition. It's important to note that Perth is a relatively small city, so competition isn't as high compared to cities like Sydney and Melbourne. This explains why we see a slightly higher average commission rate in Perth compared to bigger capital cities.
So, how can you ensure you are getting the best possible price for fees and commissions in Perth? Comparing local real estate agents via LocalAgentFinder is a good place to start and will help you understand how agents charge and structure their commissions.
Commissions and fees are terms that often get bundled together. However, the commission rate typically refers to the percentage allocation of the total cost of the property the agent sold. Fees are usually an additional cost and can include administrative and marketing costs.
It makes sense to define what exactly your agent intends to charge under these terms before entering into a contract, so there are no surprise costs down the line. The right real estate agent will be honest and upfront about all costs involved, including advertising costs and marketing fees.
It's a general trend that lower commission rates occur in more populous areas of Perth with higher property prices, larger numbers of active WA agents and added lifestyle benefits like good shopping districts and schools. The current average commission rate in Perth is 2.30%, which sits above the metro national average of 2.22%.
The graph below showcases how Perth compares to Australia’s other capital cities.
| City | Ave. Fee |
|---|---|
| Canberra | 2.19% |
| Sydney | 1.87% |
| Darwin | 2.49% |
| Brisbane | 2.52% |
| Adelaide | 1.90% |
| Hobart | 2.67% |
| Melbourne | 1.93% |
| Perth | 2.28% |
Perth areas that tend to attract higher-than-average real estate agent fees are those south of the Swan River. These outer metro regions have fewer local real estate agents competing for your business and a lower population density.
Remember that house prices have a direct impact on the total commission cost. The below indicates what you can expect in Perth, depending on the property value and the current real estate market.
| Property Value | Ave. Commission Rate |
|---|---|
| $300K | 2.45% |
| $500K | 2.28% |
| $750K | 2.23% |
| $1M | 2.20% |
| $1M+ | 2.15% |
Perth has a fairly average real estate commission rate. It's not particularly low but it's also not as high as Hobart, Brisbane and Darwin. Negotiating with real estate agents can be a trying process for some people who feel unsure about what the norm is and how they can guarantee a fair commission rate.
Knowing the average commission rate, how commissions are calculated and the various available commission structures will ensure you're in a strong position to negotiate a real estate agent's fees and commissions.
A fixed-rate commission means you agree to pay a certain percentage of the final sale price. As the price is fixed, it will stay the same no matter the selling price. The fact that no change can occur creates transparency for both parties and helps put your mind at ease. The potential downside is that this method may encourage some real estate agents to sell the house quickly and for less than expected.
The tiered percentage method operates on a sliding scale and encourages WA real estate agents to get the highest selling price possible. For example, you may agree to a 2% commission rate if the sale price is $480,000 or less and an additional amount if the property sells for a higher 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. While this incentivises most agents, the potential disadvantage is that the uncertainty of the final sale price can cause unease for some home sellers.
The type of commission you pay will depend on your property type and property worth. For example, if you're selling a large property in a popular area, the tiered percentage approach will help you secure a higher sale price.
While the commission is an important consideration when selecting an agent, we urge you to think about other factors that contribute to a great agent. This includes their local knowledge, their proposed marketing plan (offline and online), their sales history and their local reputation.
Now you know the average rate, do further research via LocalAgentFinder and create a shortlist of two to three local agents. Then follow these tips to negotiate and choose the right agent to sell your property:
Selling can be a stressful time. We know that it's hard to wrap your mind around everything involved, so here are our top tips to help Perth homeowners with the selling process. We have helped lots of locals find the perfect agent to sell their homes and we've learnt a thing or two along the way.
Commissions and fees are always going to cause some level of concern when selling your home. It's a good idea to ask your agent questions about any costs you're unsure about. However, one cost you don't have to worry about is our free comparison tool. LocalAgentFinder is a free service and your chosen agent pays a referral fee only after your property sells.
Typically, marketing fees are an additional cost outside of a real estate agent's commission rate. Request a cost breakdown from your agent beforehand but remember that advertising and marketing 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.
Experienced real estate agents will create a print and digital marketing campaign that expertly targets your key buyer demographic. The more potential buyers that know your property is for sale, the likelihood you'll sell for the highest price possible. Marketing and advertising costs should include:
Registered auctioneers in Western Australia cost between $200 and $1000.
A professional home stager will come into your home and remove clutter, appealingly arrange furniture or furnish the entire property themselves before open house inspections and a professional photo shoot. It allows you to present your home in the best possible way to potential buyers.
A good agent will either be able to give you home staging advice themselves, generally as part of their commission, or connect you with a local home staging service. Home staging costs range from $2000 to $8000 depending on the level of service, the property size and the campaign's duration.
Here are some other selling costs and fees to consider when selling your property:
The suburb with the highest real estate agent commission rate in Perth as of May 2021 is Trigg with an average commission rate of 2.98%. This is followed by Cooloongup, East Rockingham, Hillman, Peron and Rockingham at 2.93%. This is based on a property sale of $500k.
The suburb with the lowest real estate commission rate in Perth is Yanchep with an average commission rate of 1.87%. This is followed by Cottesloe, Golden Bay and Peppermint Grove at 2.01%. This is based on a property sale of $500k
The short answer is no. In metropolitan areas close to Perth CBD, commission rates are generally lower because there's high competition so agents charge competitive rates. When it comes to regional areas, commission rates are typically higher because there's less competition for the agents so they can charge higher rates.
As of May 2021, Perth - South East has the highest real estate agent commission rate in Perth with an average commission rate of 2.35%; followed by Perth - North East at 2.34%. This is based on a property sale of $500k.
As of May 2021, Perth - North West region has the lowest real estate commission rate in Perth with an average commission rate of 2.27%; followed by the Perth - Inner region at 2.28%. This is based on a property sale of $500k.
To determine average commission rates, LocalAgentFinder took the average commission of all active agents respectively on 26 May 2021. This included agents with tiered and fixed commission structures based on a $500,000 selling price. This page was updated on 20 June 2021.