Real Estate Agent Commission in Australia: What You Actually Pay

Agent commission is the single largest cost in most Australian property sales, and it is also the least understood. Commission is not regulated at a fixed rate anywhere in Australia — it is negotiable, it varies widely by state and by suburb, and the headline percentage is only part of what you pay.

How commission is usually structured

Most agencies charge a percentage of the sale price. Some offer a tiered or incentive structure, where a base percentage applies up to a target price and a higher percentage applies to anything above it. A minority charge a flat fee.

Rates differ noticeably between states and between metropolitan and regional areas, and they move with competition: in suburbs with many agencies chasing limited stock, sellers have more room to negotiate than in thin markets. Whatever you are quoted, treat it as an opening position.

The costs that sit alongside commission

Commission is rarely the whole invoice. Ask specifically about:

• Marketing and advertising — portal listings, photography, floor plans, signboards, brochures and any paid boosting. This is often billed separately and is frequently payable whether or not the property sells.
• Auction costs — the auctioneer’s fee, if you go that route.
• Administration or campaign management fees.
• Styling or staging, if recommended.

Get every figure in writing in the agency agreement before you sign, along with the agreement’s term and what happens if you want to end it early.

What you are actually buying

Strip an agency campaign back and it consists of portal exposure, professional photography, a signboard, someone to run open homes, and someone to negotiate. Those are all real services. The question worth asking is whether they cost what you are being charged, particularly the portal exposure, which is the part buyers actually use.

The private alternative

The major portals only accept listings from licensed agencies, which is why owners could not previously advertise there directly. For Sale For Lease is a licensed agency, so we lodge your listing on realestate.com.au and up to nine other sites for a once-off $799 until sold. You run the inspections and the negotiation, and there is no commission at settlement.

For a rental, the equivalent is $200 once-off until leased. The full inclusions are on our sell residential property and lease residential property pages, and commercial owners can compare on the commercial sale page.

Run your own numbers

Take the commission percentage you have been quoted, apply it to a realistic sale price, add the marketing schedule, and compare the total with a once-off listing fee. Sellers are usually surprised by the size of the gap. Whatever you decide, go in knowing the figure.

Call 1300 622 300 if you would like to talk it through.