But what are commissions, how are they calculated and what factors influence the price of fees?
Realmark Urban Agency Executive Director Scott Fletcher said a commission, in short, was a fee for service.
“A commission is charged for the successful sale and settlement of a property,” he said.
“In the majority of listing agreements between a seller and the agent, if there is no sale, there is no fee.
“The agreed commission is the incentive paid by the seller for a successful outcome in the form of a sale, which is usually paid on the date of settlement out of the proceeds of sale.”
Mr Fletcher said commissions or sales fees were deregulated in Western Australia, which meant they were not fixed by law but, rather, set by market forces.
“Commissions vary and are negotiated between the seller and their agent of choice,” he said.
“As a general rule, fees range between two to three per cent of the sale price but can be as low as one per cent and as high as 4.5 per cent.
“Fixed fees can also be negotiated and tiered to reward performance in the form of a higher sales price.”
Ray White Urban Springs Co-Principal Andrew Huggins said property types and their values could affect commission fees.
“An agent is usually willing to negotiate fees when they believe the property is likely to sell easily and quickly and when they have to compete with other local agents vying for the business,” he said.
“Quite often, vacant land will attract a lower commission as home opens are not required.”
As for property location, if you’re selling in the Perth CBD, you might pay less fees than a vendor in Donnybrook.
Mr Huggins said this was because rural properties often had a longer selling time.
“Rural commissions are often higher due to the fact that they often take much longer to sell, often have a driving time consideration and rural agents traditionally share their commission with other agents more than city agents,” he said.
Mr Fletcher agreed, saying many regional sellers opt to pay more for a faster sale and premium result. “There may be less agents to choose from too, so fees may be higher,” he said.
“The same can be said in the metropolitan area – many sellers will pay for what they deem to be value for money and the right agent.”
Other factors such as agent experience and reputation can influence commission fees.
“Sellers are often prepared to pay a higher commission to the dominant agent in an area or to an agent they trust,” Mr Huggins said.
“There is usually a reason an agent is more successful than others and that reason is not always immediately evident.
“Highly competent agents often utilise data more effectively and, as they grow their buyer database, it becomes a powerful tool to reach buyers, often providing a greater market reach than smaller, less competent agents.”
Written by Madelin Hayes, The West Australian