Australian property prices have experienced a cooling down since the astronomical rise in March of this year, although price growth still sits well above the thirty-year average.
As locked-down Melburnians welcomed Spring from home, property values saw another bump of +1.2% in median property values for the month, according to CoreLogic’s latest Home Value Index. The median value of a home in Melbourne is now $769,968.
What are real estate commissions in Victoria in 2021
If you’re planning to sell a property in Victoria, it’s important to know the fees and commissions that can come with selling through a traditional real estate agent. We’ve put together the average cost of selling a home in Victoria in 2021.
Average Victoria real estate commissions
What commission you pay makes a big difference - in fact it is the largest single cost associated with a property sale.
Unfortunately, a ‘standard’ real estate agent commission doesn’t exist, nor is there legislation that governs how much real estate agents can charge to sell your property. Real estate commission fees can depend on a few different factors, some of which are your location, the value of your home, the type of agencies you choose to sell with, as well as the current market conditions.
The cost of selling a home can be very different depending on the area you live in. Typically, real estate commissions in rural areas tend to be higher than in major cities due to the scarcity of housing in more remote regions.
Some rates that agents charge will include advertising and marketing costs in their commission structure, while others break these costs out and charge you separately for them.
The overall average commission rate in Victoria is 2.05%, but this can range as low as 1.8% in more competitive metropolitan areas, to as high as 3.5% in some regional areas.
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Source: LocalAgentFinder Data Researched May 2021
What is the property market currently like in Victoria?
In the 12 months to June, the national median price for a house in Melbourne rose by 16.2%. We’ve covered why house prices have been on the upwards trajectory, but in a few words, record prices have been achieved off the back of historic low supply and strong buyer demand.
With the rise in house prices, real estate commissions in Victoria have also risen. Let’s take a look at two examples:
- A house sold in a Melbourne suburb for the 2020 median house price of $880,620 would have attracted a commission of $18,053 (based on the average Victorian real estate commission rate of 2.05%)
- The same house sold for the 2021 median house price of $1,022,927 would now attract a commission of $20,970
- That’s about a $2,917 pay rise out of your pocket!
Selling a property in this hot seller’s market should benefit you, instead of putting extra commissions into an agent’s pocket.
Upside = no-commission VIC real estate agent
At Upside, we’re not your typical VIC real estate agent. Our experienced property agents all have proven track records before joining Upside, and provide everything you’d expect from a traditional real estate agency – including marketing, auction management, buyer negotiation, and more – but we never charge a commission on our services. Instead, we charge an all-inclusive fixed fee (no matter how much you sell for) which is payable at settlement.
What's included in your fixed-fee?
But sometimes, it’s not so much about what an agent charges you, but more about what it could cost you if you get the wrong agent to sell. This is why it is important to do your market research, and speak to a few local agents from different agencies before deciding which agent to go with.
Worried about selling at this time? Upside is your safest choice. With remote appraisers, virtual open for inspections & meetings, digital contracts and agents that have always worked from home, there is no agency in a better position to look after you when selling in the current climate. Book your free, no obligation (and digital if you'd prefer) appraisal with us today.