Consumer comments about real estate refund
Why are real estate agent selling fees so high ?
The big change in the real estate industry in the last 20 years in Australia has been the massive increase in property prices.
Every property owner has been is better off because of this increase in values.
When you consider according to the Reserve Bank of Australia the median house price in Australia has risen by 180% since the mid 1990's to late 2008 ,this is compared to an increase in the CPI ( Consumer price index ) during the same period of a little over 30%.
This has created a situation where real estate agent commissions have have also risen substantially.
This is because Australian real estate agent commissions and selling fees are linked to property prices.
In most instances the real estate selling fee or the amount the real estate agents charge to sell your property are calculated as a percentage of the total selling price.
You would expect wages and charges to have risen over this 20 year period but if you look at real estate agent commissions i think you will see the rise in commissions and charges has been far above normal wage increases.
As a simple example : if your property sold for $450,000 and the real estate agents fee might be 2.7% of the sale price then the agents fee would be worked out to be 2.7% of $450,000 that is $12,150.
When you consider the average property value across Australia in 2009 is being quoted at around $470,000 you can see why the real estate agents are being paid very well.
Compare this to say 1990, when in Australia the average property sale price was around $160,000 even if the real estate agent charged 3.3% of the sale price to sell your property then you can see the real estate fee would then have been $5,280.
Has the levels of customer service in the real estate industry risen to match these increase in charges ?
The charges associated with marketing a property have also risen, with real estate agents pushing consumers for contributions towards adveertising costs.
Australian real estate consumers have accepted these increase in charges as the net sale amounts have been so much higher, but the point is we can get you a big saving, who wouldn't want to get a refund of approximately $1,500.00 ?




