In Hobart, most sellers pay a commission based on the final sale price, plus a separate marketing budget. Commission commonly falls around 2%–3.3%, although the actual rate depends on the agency, property and services provided.
This guide explains how commission works, what other costs to expect and how to compare quotes before signing an agency agreement.
Table of contents
- How Much Does a Real Estate Agent Cost in Hobart?
- How Does Real Estate Agent Commission Work?
- What Other Costs Are Involved in Selling a Property?
- Are Real Estate Agent Fees Negotiable?
- What Is Included in a Real Estate Agent’s Fees?
- Is It Worth Choosing a Cheaper Real Estate Agent?
- How to Compare Real Estate Agent Costs in Hobart
- Speak With a Hobart Real Estate Agent
How Much Does a Real Estate Agent Cost in Hobart?
The main costs of engaging an agent are:
- Commission: a percentage of the sale price, generally paid at settlement
- Marketing: advertising and presentation costs, usually paid separately
- Additional fees: auctioneer, styling or administration expenses, where applicable
Real estate agent commission in Tasmania is not fixed by law. Agencies negotiate their own fees, and the Real Estate Institute of Tasmania’s published fee schedule is a guide rather than a mandatory rate.
How Are Fees Structured?
Most agents charge a percentage of the final sale price. Some offer a fixed fee, a tiered commission or a performance-based structure where an additional amount becomes payable above an agreed sale price.
The important thing is understanding how the fee is calculated and what it includes.
How Does Real Estate Agent Commission Work?
Commission is calculated against the final sale price.
For example, on a property selling for $740,000:
- 2% commission: $14,800
- 2.5% commission: $18,500
- 3% commission: $22,200
- 3.3% commission: $24,420
These examples assume the percentages include GST and exclude marketing and other selling expenses.
Published commission guides indicate that Hobart rates vary considerably, with approximately 2%–3.3% providing a broad indicative range rather than a fixed market standard.
Always confirm whether the quoted commission includes GST.
What Affects Commission Rates in Hobart?
- Property value: higher-priced properties may attract a lower percentage
- Sale method: auctions can involve additional campaign costs
- Location: fees may differ between Hobart and regional Tasmania
- Property type: unusual or harder-to-sell properties may require additional work
- Agent experience: service levels and commission structures differ between agencies
What Other Costs Are Involved in Selling a Property?
One of the main subsequent costs involved in selling your property are the marketing costs.
What Marketing and Advertising Expenses Should Sellers Expect?
Marketing costs depend on the property and the recommended campaign.
Common expenses include:
- Online listings: standard or premium placement on property websites
- Photography: professional property images and optional drone photography
- Floor plans: layouts to help buyers understand the property
- Video: walkthroughs that can be particularly useful for interstate buyers
- Print advertising: brochures, signboards or newspaper advertising
Marketing costs may still be payable if the property doesn’t sell. Confirm the amount and payment terms before approving the campaign.
Are Photography, Styling and Auction Costs Included?
Some agencies include photography in a marketing package, while styling and auctioneer fees may be charged separately.
Ask for an itemised breakdown showing which services are included and which attract additional charges.
Other selling expenses, including conveyancing and mortgage discharge fees, are covered in our guide to selling a house in Tasmania.
Are Real Estate Agent Fees Negotiable?
Yes. Both commission and marketing costs can be discussed before signing an agency agreement.
Rather than focusing only on reducing the commission, consider whether the proposed marketing budget and services suit your property.
A lower fee isn’t necessarily better value if it comes with fewer services or a less effective campaign.
What Should Be Clarified Before Signing an Agency Agreement?
Tasmania’s Property Agents and Land Transactions Act 2016 sets requirements for agency appointments, commission and disclosure.
Before signing, confirm:
- Written agreement: the services, fees and expenses must be clearly documented
- Agreement length: sales agency agreements generally cannot exceed 120 days, with an exception for certain property developers
- Ending the agreement: either party may terminate a sales agency agreement with no more than 30 days’ written notice
- Commission after expiry: an agent may still be entitled to commission if the property sells within 90 days to a buyer they introduced or showed the property to, where that introduction or showing was the effective cause of the sale and other statutory conditions are met
- Marketing costs: what is payable, when payment is due and what happens if the property doesn’t sell
- Other benefits: agents must disclose relevant benefits or commissions received through their appointment, subject to statutory exceptions
Read the agreement carefully and seek independent advice if any terms are unclear.
What Is Included in a Real Estate Agent’s Fees?
Real estate agent selling fees generally cover:
- Property appraisal and pricing advice
- Sales strategy and campaign coordination
- Buyer enquiries and inspections
- Negotiation with prospective buyers
- Coordination with your conveyancer
- Communication throughout the sale process
The exact services depend on the agency and agreement.
Are There Differences Between Agencies?
Yes. Some agencies offer lower commissions with fewer included services, while others provide a more comprehensive campaign.
Compare what each agent offers alongside the headline commission rate.
Is It Worth Choosing a Cheaper Real Estate Agent?
A lower commission saves money only if the sale result is comparable.
For example, a 0.5 percentage-point difference in commission on a $740,000 property is $3,700.
That saving could be outweighed if a stronger marketing campaign or better negotiation achieves a higher sale price.
Our guide to how to choose a real estate agent covers the other factors worth considering.
How Do Experience, Marketing and Negotiation Affect the Result?
An agent’s local knowledge informs their pricing advice, marketing helps attract suitable buyers and negotiation can influence the final price and conditions.
These factors are harder to compare than a commission percentage, but they can have a greater impact on the overall result.
Our guide to what makes a good real estate agent in Hobart explains what to look for.
How to Compare Real Estate Agent Costs in Hobart
Ask each agent:
- What is your commission rate, and does it include GST?
- What marketing do you recommend, and what will it cost?
- Which expenses are payable if the property doesn’t sell?
- What recent comparable sales support your appraisal?
- How long is the agency agreement, and how can it be ended?
For more guidance, see our list of questions to ask a real estate agent.
What Should a Written Fee Breakdown Include?
- Commission: the percentage or fixed fee, including GST treatment
- Marketing: individual advertising and presentation expenses
- Additional fees: auctioneer, styling or administration charges
- Payment timing: when each expense becomes payable
- Agreement terms: duration, termination and any continuing commission entitlement
Comparing written quotes on the same basis gives you a clearer picture of real estate agent fees in Hobart.
Speak With a Hobart Real Estate Agent
The cost of a real estate agent depends on the commission, marketing campaign, and services included. Comparing written quotes alongside experience and local market knowledge will help you make an informed decision.
To discuss your property and selling costs with a real estate agent in Hobart, request a property appraisal with Wolf Property.
