SOLD: $900,000, 2 Lynngold St, Woodridge
Queensland homeowners are paying some of the highest real estate agent commission rates in the country, with new data showing sellers in parts of the state are being charged close to 4 per cent to sell.
A report from agent comparison service bRight Agent found Queensland’s median agent commission rate sat at 2.8 per cent, above the national median of 2.65 per cent, based on data from more than 200 postcodes nationwide.
The data showed the steepest fees in Queensland were concentrated in regional areas, led by Ingham in Far North Queensland, where the average commission rate was 3.75 per cent.
Other Queensland hotspots included 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.
SOLD: $1,455,500, 413 Snooker St, Bracken Ridge
Across Greater Brisbane, higher rates were recorded in Woodridge at 3.15 per cent, Springwood 2.8 per cent, Goodna 3.05 per cent, and Ipswich City, 2.9 per cent.
Those rates translated to commissions ranging from $9,937 in Ingham to $28,025 at Airlie Beach.
Across Brisbane’s northside and inner suburbs, commission rates were generally lower but still substantial, particularly when factoring in higher local house prices.
Bracken Ridge was at 2.6 per cent or $23,920, Sunnybank 2.52 per cent or $36,540, and Coorparoo 2.5 per cent — $41,250.
On the Sunshine Coast, Buderim recorded 2.55 per cent, while Trinity Beach in Cairns sat at 2.6 per cent.
SOLD: $1.327m, 8 Plateau Rd, Springwood
bRight Agent co-founder Aaron Scott said the report gave homeowners a clearer benchmark to compare rates in their local area and negotiate with more confidence.
“Selling your home is one of the biggest financial decisions you’ll ever make, yet commission rates are still one of the least transparent parts of the process,” Mr Scott said.
“Even a small reduction in commission can put thousands of dollars back in a seller’s pocket, which is especially important if you’re selling under financial pressure.”
The Real Estate Institute of Queensland (REIQ) said there was no standard or recommended commission rate in the state.
REIQ CEO Antonia Mercorella said agents were required to ensure commission was clearly expressed, and that the client fully understood the likely amount and when it was payable.
“Agents can negotiate commission with their client, depending on the value of the property,” Ms Mercorella said.
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“For example, a higher commission may be applicable to a lower-end property because it has to be viable and commensurate with the time and resources required to sell it.”
Mr Scott said higher commission rates were typically driven by weaker competition among agents in regional and remote areas.
“Our figures show that regional and remote areas are paying substantially higher real estate agent commission rates than the major urban centres,” he said.
“Without strong competition, homeowners aren’t able to shop around as much to get a better rate, and as such they’re forced to pay higher prices.”
The report highlighted a disparity between states, with Queensland sitting above New South Wales and Victoria, where average rates were 2.35 per cent, while the ACT was lowest at 2.23 per cent.
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It comes amid anecdotal claims agents are discounting their fees more often in a tight listings market, as they compete harder for scarce stock.
But Ms Mercorella said experienced agents should not be expected to reduce their fee or undersell their “expertise, market knowledge and negotiation skills”.
“The old adage you get what you pay for applies here,” she said.
“You may pay more commission for the best agent, but that decision could put you in a better position based on the ultimate sale price.”
SOLD: $440,000, 18 Mahoney St, Ingham
Ms Mercorella said many sellers underestimated the overheads involved in running a real estate business.
“Overheads can include franchise fees, wages for administration and support staff, brick and mortar office costs, insurances…and marketing for the agency and agents.”
She said compliance requirements also created “hidden expenses” for agencies.
“Historically we have seen a number of low or fixed-fee business models come and go because when you factor in the significant overheads of running a real estate business, it’s not sustainable.”
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