Real estate agent commission in Australia: what you should actually pay
Selling · 9 min read · Updated 31 July 2026
Commission is the single biggest cost of selling a property in Australia — usually far bigger than conveyancing, marketing or styling. Yet most owners agree to a rate in the first appraisal meeting, before they know what the going rate in their suburb even is. Here is what agents actually charge, what the fee buys, and how to get it capped before you sign.
What is a real estate agent commission?
Commission is the fee an agency charges for selling your property, almost always calculated as a percentage of the final sale price and paid at settlement out of the proceeds. If the property does not sell, no commission is payable — though you may still be out of pocket for the marketing campaign, which is charged separately.
Commission rates in Australia have been fully deregulated since the 1990s. There is no legislated rate anywhere in the country, which means every figure you are quoted is negotiable, and the number an agent opens with says more about their negotiating habits than about the market.
Typical commission rates by state
Rates vary with property value, competition between agencies, and how much work the campaign requires. As a broad guide for standard residential sales:
| State / territory | Typical range | Notes |
|---|---|---|
| New South Wales | 1.8% – 2.5% | Lower in inner Sydney, higher in regional areas |
| Victoria | 1.6% – 2.5% | Melbourne metro among the most competitive nationally |
| Queensland | 2.5% – 3.0% | Historically the highest capital-city rates |
| South Australia | 2.0% – 2.75% | Often quoted as a tiered structure |
| Western Australia | 2.0% – 3.0% | Sliding scales still common in Perth |
| Tasmania | 2.5% – 3.5% | Thinner agency competition lifts rates |
| ACT | 2.0% – 3.0% | Flat-fee models more common than elsewhere |
| Northern Territory | 2.5% – 3.0% | Small market, limited agency choice |
On a $900,000 sale, the difference between 2.0% and 2.6% is $5,400 plus GST — real money, decided in a conversation that usually lasts under five minutes.
Fixed percentage vs tiered commission
A fixed percentage applies the same rate to the whole sale price. Simple, predictable, and the most common structure in the eastern states.
A tiered or incentive structure pays a base rate up to an agreed threshold and a much higher rate on everything above it — for example 2% up to $900,000, then 10% of anything beyond. Done properly this aligns the agent with getting you a premium. Done badly, the threshold is set so low that the bonus is guaranteed, and you simply pay more.
If you are offered a tiered structure, set the threshold at or slightly above the top of the agent's own appraisal range. If they resist, the appraisal was optimistic.
What the commission actually covers
Commission pays for the agent's time and expertise: pricing strategy, buyer database access, private inspections and open homes, negotiation, auction management, and coordination through to settlement. Roughly half of it typically goes to the agency rather than the individual agent, funding the office, compliance and support staff.
What it usually does not cover is marketing. Photography, floor plans, portal listings on realestate.com.au and Domain, signboards, brochures and auctioneer fees are billed separately — commonly $4,000 to $12,000 for a metropolitan campaign, and payable whether or not the property sells. Always ask for the marketing schedule in writing alongside the commission rate, because a low rate paired with a bloated campaign can cost you more overall.
Is commission negotiable?
Always. Agents expect it, and the ones worth hiring can defend their number calmly. Your leverage is highest before you sign the agency agreement and effectively zero afterwards.
- Know the local rate first. Negotiating without a benchmark just means accepting whatever you are told.
- Get more than one appraisal. Two or three comparable proposals change the conversation immediately.
- Negotiate the marketing budget too. It is often the softer number.
- Do not simply hire the cheapest. An agent who discounts their own fee in thirty seconds is unlikely to hold firm on your price with a determined buyer.
- Check the agreement term. Ninety days is standard; longer exclusive periods lock you in if the relationship sours.
The trap in "compare the agents" websites
Most agent-comparison services in Australia are lead-generation businesses. Agents pay a subscription or retainer to appear, so the shortlist you receive is drawn from the pool of agents who paid — not the agents who perform best on your street. It is advertising dressed as advice.
Sales & Leasing takes no retainers. Every agency in our network is charged the identical fee, and only on successful completion of a sale or lease. No sale, no fee. Nobody can buy their way onto your shortlist, so the recommendation reflects performance data rather than marketing spend — and because we negotiate across the network, the commission is capped before you ever meet the agent.
How to read an agent's numbers
Before you talk about fees, establish whether the agent is worth the fee at all:
- Properties genuinely sold in your suburb in the last twelve months — not listed, sold.
- Average days on market against the suburb median. Faster usually means better-priced and better-negotiated.
- Sale price versus initial guide. Consistent under-quoting to win listings shows up here.
- Reviews from vendors, not buyers, and ideally on properties like yours.
The short version
Expect roughly 1.6%–3.5% depending on where you are, treat marketing as a separate negotiation, put any incentive threshold above the appraisal range, and never agree to a rate on the day of the first appraisal. Above all, choose on demonstrated performance and negotiate the fee second — a great agent at 2.5% routinely beats an average one at 1.8%.