08 Dec 2015
Real Estate Agent Fees and Commissions: A Complete Guide

Real Estate Agent Fees and Commissions: A Complete Guide

Real Estate Agent Fees and Commissions: A Complete Guide
Guid,Tips,Selling,Auction real estate agents

If this is the first time you have sold a house, there are additional costs associated with selling a property

Today we will explain the fees and commissions associated with using a real estate agent. Topics include the role of a real estate agent, how much real estate agents charge, as well as tips and tricks for selling or buying a house with an agent. With a bit of education you will be able to understand exactly what you are paying for.

A Real Estate Agents Role

A real estate agent will assist you with selling your home, managing your property for renting purposes or buying a property on your behalf.

Essentially, they act as an intermediary or ‘broker’ between two parties who want to buy/sell a property.


The main goal of a real estate agent is to offer their customer the best possible service. Regardless of whether you are selling or buying, they work towards getting you the best possible price in the current market conditions.

They do this by using their market expertise and negotiating skills. Real estate agents are adept in this subtle art. They understand what people look for when buying a home and have the experience and knowledge to overcome barriers to close a sale. 

They perform their tasks to the best of their ability because, apart from it being their job, they are fiscally motivated to do so – receiving a fee and /or commission is their reward. The other pros of contracting a real estate agent are:

  • Pricing expertise
  • Finding available homes
  • Understanding the area
  • Code & technical expertise
  • Record keeping
  • Paperwork
  • Avoiding closure problems
  • Use of marketing to help sell your home

Real estate agents make your job easier by helping you sell your house. If you use the right real estate agent, they can be of great benefit to you.


There are many benefits to using a real estate agent, but you should be aware that if you choose the wrong one, there might be some disadvantages.

Apart from seeking the services of someone who lacks the skills and experience to adequately represent you, they may overcharge you for their services. In Western Australia, the government has not set a maximum fee for agent’s service, which means you have to negotiate with the agent to work out how much you will pay.

Real Estate Agents also have to go through the process of obtaining their Real Estate Registration and includes obtaining a police clearance.

Real Estate Agent Commission

Commission is the fee agents earn when they sell a property. The rates are a percentage of the total value of the home. In Western Australia, the rates sit in the middle of the spectrum compared to other states in Australia. The average real estate agent commission rate in Western Australia ranges from 3 to 3.25 per cent, according to News.com.au.

To put that in perspective, if you sold your home for $600,000, the commission the agent received would be $14,700.

Should You Negotiate Commission?

By doing a bit of research, you will get an idea of what a reasonable commission rate will be.

Contact a few real estate agents and discuss commission rates once you are happy with your final agents.

There is no cap to what agents can charge for their services, but be careful of agents offering low commission rates. It might sound like a good idea initially; however, it can be detrimental to the final selling price if you do not engage in an experienced agent.

Tip: It is more important to choose a real estate agent based on their recent sales and local knowledge then their commission rate.

In a scenario where you should not expect a real estate agent to budge on their price, especially when you want above the market value for your home, because they will have to work much harder to sell it.

Fees Are Usually Worth It

Real estate agents are great resources based on their expertise in buying, selling and managing properties. These services obviously come with an attached fee. If you find a great agent, this fee is well worthwhile.

Finding an agent can be a difficult task, but if you know what to look for and what price you should expect to pay, you are more likely to find one who is right for you.

Written by Naked Edge Writers

Real Estate Agent Fees and Commissions: A Complete Guide
Naked Edge Writers

Naked Edge Real Estate Writers collaborating to bring the latest news and trends in real estate for buying, selling and working in the exciting world of real estate.

View all posts by : Naked Edge Writers

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