When you're shortlisting potential agents to help sell your property, you need to know how much real estate agents charge, specifically their fees and commissions. The real estate agent fees and commissions you pay are the largest single cost associated with a property sale, so it makes sense to know what you are being charged and how this will impact your finances.
It's worth knowing that agent commissions are not regulated in Australia, and are 'set' by the market. This means that the rates or commissions a real estate agent charges will vary, with some commission rates including advertising and marketing costs in their commission structure, and others breaking these costs up and charging you a separate fee for them.
Commissions by state and capital city
- Real estate commissions in the Australian Capital Territory
- Real estate commissions in New South Wales
- Real estate commissions in Northern Territory
- Real estate commissions in Queensland
- Real estate commissions in South Australia
- Real estate commissions in Tasmania
- Real estate commissions in Victoria
- Real estate commissions in Western Australia
- Real estate commissions in Sydney
- Real estate commissions in Melbourne
- Real estate commissions in Brisbane
Use our free commission calculator to find out what you should expect to pay in your suburb.
Average real estate agent commissions
Generally speaking, average Australian real estate agent commission percentages may range from 1.0% to 3.6% of the total sale price, depending on location, property type, sale price, and the amount of competition between agents in an area.
The simple rule of supply and demand dictates that postcodes with lots of local agents will drive competition for your listing. To get your business, they are forced to lower their rates. The reverse applies in rural areas, where fewer agents mean there is less competition over listings, often resulting in higher commissions.
Let's take a look at two examples, one in metro Sydney and one in regional Victoria:
If you sold your property in Randwick for $1.2 million — where the average agent commission rate is currently 1.92% — you would pay your agent a commission of $23,040. This would leave you with $1,176,960 from the sale.
If you were selling in regional Bendigo for $1.2 million — where the average agent commission rate is currently 2.44% — you would pay your agent a commission of $29,280. This would leave you with $1,170,720 from the sale.
As you can see a small difference of just 0.52% in the agent commission translates to thousands of dollars in difference that you could end up paying your agent following a successful sale.
Now let's look at real estate agent fees and commission in more detail, starting with the difference between these two separate costs.