When it comes to selling property, ensuring you get an agent who is both capable and charges a suitable commission is just as important as the process of selling itself. With differing laws and rates charged to different states, it's a good idea to understand what ranges of commission you can expect. All states have negotiable commission rates, meaning you can discuss with your agent what rate they will charge to the sale of your property.
Similarly to how certain districts can have differing price ranges to others, there are also different general commissions charged towards different states. We've compiled a summary of the average commissions you can expect between states:
Commission rates in New South Wales (NSW)
Australia's most populated state, NSW real estate agents are generally hard to barter with in terms of commission rates given the high demand of the properties. In NSW, commission rates range between 2-2.5% within metropolitan areas and 2.5-3.5% to areas outside of the metropolitan district.
Commission rates in Victoria (VIC)
The most densely populated state within Australia, demand is higher than ever within Victoria and similarly to NSW, agents are difficult to negotiate with. Commission rates range between 1.6-2.5% within metropolitan areas and 2.5-3% to areas outside of the metropolitan district.
Commission rates in Western Australia (WA)
Taking up approximately one third of Australia, WA is one of the most sparsely populated states within Australia. Commission rates within Western Australia have a fairly small range between 3-3.25%.
Commission rates in South Australia (SA)
With less than 8% of the Australian population residing in South Australia, there is a fairly limited range within the commission rates charged. Commission rates range between 2-2.75% within metropolitan areas and 2.75-3% to areas outside of the metropolitan district.
Commission rates in Northern Territory (NT)
A sparsely populated state of Australia, Northern Territory has a relatively flexible range of rates. Agents within Northern Territory are comparatively easier than other states in terms of negotiation of rates. Commission rates generally range between 2.5-4%.
Commission rates in Australian Capital Territory (ACT)
Home to Australia's capital city, ACT has a fairly flexible band of rates with commission rates range around 2.5-3% within metropolitan areas and 2.5-4% to areas outside of the metropolitan district.
Commission rates in Queensland (QLD)
Notably, as of 2014, Queensland law no longer limits commission rates on real estate agents. As such, agents are far more likely to negotiate their commission rates given this flexibility. Commission rates generally range between 2-2.5%.
However, while these are the general commission rates charged between real estate agents in differing states, there may be some cause for higher commission rates. Use at our commissions calculator to estimate what you'll be paying in commission.
Are marketing costs different from commissions?
As these rates have a tendency to exclude advertising costs, some agents offer to include the advertising costs of your property within their commission rate. This can result in rates which can go as high as even 5%.
It is important to understand the different range of expected commission rates between states as a small difference in percentage, applied to your property's overall selling price, can be a huge difference in your earnings. Additionally, it may be worth your while to read up on tiered commission rates, as they may come into discussion when negotiating with your agent.