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Real Estate Agent Commission Rates Australia: Complete Guide (2026)

Understand real estate agent commission rates across every Australian state. Covers average rates, fixed vs percentage fees, marketing costs, auction fees, how to negotiate, and questions to ask when choosing an agent.

Realestate Lens Team14 min read

Definition

What are real estate agent commission rates?

Real estate agent commission is the fee paid to a licensed agent for marketing and selling your property. In Australia, commission is typically charged as a percentage of the final sale price (usually 1.5% to 3.5%) or as a fixed fee. Commission is negotiable and is only payable upon successful sale. It is paid from the settlement proceeds, so you do not need to fund it out of pocket.

Selling a property is a significant financial event, and one of the largest costs you will face is the real estate agent's commission. Understanding how commission works, what is included, and how to negotiate effectively can save you thousands of dollars. For a complete overview of the entire selling process, see our complete vendor guide. This guide covers everything Australian sellers need to know about agent commission rates in 2026.

Average Real Estate Agent Commission Rates by State

Agent commission rates vary across Australia, influenced by local market conditions, property values, and competition between agents. Metropolitan areas tend to have lower percentage rates than regional areas because higher property values mean a lower percentage still generates a substantial fee. The table below shows typical commission ranges by state.

Typical Agent Commission and Marketing Costs by State (2026)

StateTypical Commission RangeTypical Marketing Cost
NSW1.8% – 2.5%$5,000 – $15,000
VIC1.6% – 2.5%$5,000 – $12,000
QLD2.0% – 3.0%$4,000 – $10,000
WA2.0% – 2.5%$4,000 – $10,000
SA1.8% – 2.5%$3,000 – $8,000
TAS2.5% – 3.5%$3,000 – $8,000
ACT1.5% – 2.5%$4,000 – $10,000
NT2.5% – 3.5%$3,000 – $8,000

Note: These are indicative ranges as of early 2026. Actual rates depend on the specific agent, property value, property type, and negotiation. GST is included in quoted commission rates. Marketing costs are typically charged separately and are payable regardless of whether the property sells.

Commission on a $800,000 property: At a 2.0% commission rate, the agent's fee would be $16,000 (including GST). At 2.5%, it rises to $20,000. That $4,000 difference demonstrates why negotiating even a small reduction in the percentage rate can have a meaningful impact. Always get the commission rate and structure confirmed in writing before signing the agency agreement.

Commission Structures Explained

Percentage-Based Commission

The most common structure in Australia. The agent charges a percentage of the final sale price. Some agents use a tiered structure — for example, 2.5% on the first $500,000 and 1.5% on the amount above $500,000. Tiered structures can work in your favour on higher-value properties but always calculate the total dollar amount to compare.

Fixed-Fee Commission

Some agents and online platforms offer a fixed fee regardless of the sale price — for example, $5,000 to $10,000 flat. Fixed fees can offer significant savings on higher-value properties, but the trade-off is often reduced service. Fixed-fee agents may not provide the same level of marketing, open home management, or negotiation support as traditional agents. Consider whether the savings justify the reduced service, particularly if your property requires skilled negotiation to achieve the best price.

Commission Plus Performance Bonus

A growing trend is a lower base commission with a performance bonus if the property sells above an agreed reserve or target price. For example, 1.8% base commission plus 10% of anything above $900,000. This structure aligns the agent's incentive with your goal of achieving the highest possible price. However, ensure the reserve price is set realistically — an inflated reserve reduces the chance of the bonus being triggered, which may reduce the agent's motivation.

What Is Included in Agent Commission?

Commission typically covers the agent's core services. However, what is included varies between agents, so always confirm the scope in writing.

  • Property appraisal and pricing strategy: Assessing your property's market value using comparable sales data and local knowledge.
  • Listing and advertising: Creating the online listing with professional descriptions, floor plans, and photographs (though professional photography may be an additional marketing cost).
  • Open home inspections: Conducting scheduled open homes and private inspections for prospective buyers.
  • Buyer enquiry management: Fielding calls, emails, and portal enquiries from prospective buyers.
  • Negotiation: Negotiating offers on your behalf to achieve the best possible price and terms.
  • Contract coordination: Liaising between the buyer, the buyer's solicitor, your solicitor, and other parties through to exchange and settlement.
  • Auction services: If selling by auction, the agent typically organises the auctioneer (though some agents charge an additional auctioneer fee of $400 to $1,000).

Marketing Costs: What You Pay on Top of Commission

In most Australian states, marketing and advertising costs are separate from commission and are payable upfront or on an agreed schedule — regardless of whether the property sells. A typical marketing campaign includes:

  • Professional photography and videography: $500 to $2,000 depending on the scope (drone footage, twilight shoots, and virtual tours cost more).
  • Online portal listings: A premium listing on realestate.com.au or Domain can cost $1,000 to $5,000+ depending on the tier and location.
  • Print advertising: Local newspaper and magazine ads, typically $500 to $2,000 per insertion. Print is becoming less common but remains relevant in some markets.
  • Signboards: $200 to $600 for production and installation.
  • Brochures and flyers: $200 to $800 for design and printing.
  • Social media and digital advertising: $300 to $1,500 for targeted Facebook, Instagram, and Google campaigns.
  • Floor plans: $200 to $500 for a professional floor plan.
  • Styling and staging: $2,000 to $8,000+ if you choose to have the property professionally styled. Not always included in the marketing budget.

Always ask for an itemised marketing schedule. Before signing an agency agreement, request a detailed breakdown of every marketing expense, what it covers, and when it is payable. Be wary of agents who recommend expensive marketing packages without clear justification. A premium portal listing is usually worthwhile, but not every property needs a $15,000 campaign. Question every line item.

Sole Agency vs Open Listing

Sole (Exclusive) Agency

Under a sole agency agreement, you appoint one agent exclusively to sell your property for a specified period (typically 60 to 120 days). The agent has full control over the marketing and sales process. If the property sells during the agency period — even if you find the buyer yourself — the agent is entitled to their commission. Sole agency is the most common arrangement and is generally recommended because the agent has a stronger incentive to invest time and marketing resources.

Open Listing

An open listing allows you to appoint multiple agents simultaneously. Only the agent who introduces the successful buyer earns the commission. While this sounds appealing, open listings can result in less effort from each agent (since their commission is not guaranteed), inconsistent pricing messages to the market, and a perception among buyers that you are desperate to sell. Open listing commission rates are typically higher (by 0.5% to 1.0%) to compensate for the agent's reduced certainty.

Sole Agency with a Conjunctional Clause

A middle ground: you appoint one primary agent but allow them to work with other agents who may introduce buyers. The commission is split between the listing agent and the introducing agent. This gives you the benefits of sole agency (one point of contact, consistent marketing) while expanding your buyer reach.

How to Negotiate Agent Commission

  1. 1

    Interview at least three agents

    Get appraisals and commission quotes from a minimum of three agents. This gives you a realistic range for your area and creates competitive tension. Ask each agent what their standard rate is and whether they are willing to negotiate.

  2. 2

    Understand the total cost, not just the percentage

    A lower commission rate does not always mean a lower total cost. An agent charging 2.2% who achieves a $50,000 higher sale price is a better outcome than an agent charging 1.8% who undersells. Focus on the net amount you will receive after all costs.

  3. 3

    Negotiate based on the property, not just the rate

    Higher-value properties, properties in high-demand areas, or properties likely to sell quickly justify a lower percentage. If your property is worth $1.5 million, a 1.8% commission is $27,000 — a substantial fee for potentially a few weeks of work. Use this as leverage.

  4. 4

    Ask about tiered or performance-based structures

    Propose a tiered commission (lower rate on the base amount, higher rate above a target price) or a performance bonus. This aligns the agent's incentive with your goal and can reduce your base cost.

  5. 5

    Negotiate the marketing spend separately

    Do not bundle marketing costs into commission negotiations. Negotiate commission and marketing as separate line items. You may be able to reduce the marketing budget by opting out of expensive print advertising or lower-tier portal listings.

  6. 6

    Get everything in writing

    Once you agree on commission, marketing costs, agency duration, and services included, ensure everything is documented in the agency agreement before signing. Verbal promises are difficult to enforce. Review the agency agreement carefully — or have your solicitor review it.

Hidden Fees and Costs to Watch For

Beyond commission and marketing, some agents include charges that can catch sellers off guard. Review the agency agreement carefully for:

  • Auctioneer fees: Some agents charge $400 to $1,000 separately for the auctioneer's services on auction day. Clarify whether this is included in commission.
  • Administration or compliance fees: Some agencies charge $200 to $500 for administrative work, contract preparation, or regulatory compliance. These fees are not always disclosed upfront.
  • Cancellation or early termination fees: If you terminate the agency agreement before it expires, some agents charge a fee to cover their marketing costs already incurred. Check what happens if you want to switch agents.
  • Marketing cost reimbursement on withdrawal: If you withdraw the property from sale, you are typically liable for any marketing costs already committed. This is standard but confirm the terms and any caps.
  • Continuing agency clause: Some agreements include a clause entitling the agent to commission if a buyer they introduced during the agency period purchases the property after the agreement expires (typically within 60 to 90 days). This is reasonable but ensure the timeframe is not excessive.

Questions to Ask When Choosing an Agent

Selecting the right agent is about more than just commission. Ask these questions during your agent interviews to make an informed decision:

  • What is your commission rate, and is it negotiable? Establish this upfront. Ask what the rate includes and what is charged separately.
  • How many properties have you sold in this suburb in the last 12 months? Local knowledge and an active buyer database are critical. An agent who regularly sells in your area will price and market your property more effectively.
  • What is your average days on market? This indicates how efficiently the agent prices and sells properties. Compare their figure to the suburb average.
  • Can you provide references from recent sellers? Speaking to past clients gives you real insight into the agent's communication style, negotiation skills, and overall service quality.
  • What is your recommended method of sale? A good agent will explain why they recommend private treaty, auction, or expressions of interest based on your specific property and local market conditions — not just default to auction.
  • What marketing do you recommend and what will it cost? Ask for an itemised marketing plan with costs. Beware of agents who push expensive marketing packages without clear reasoning.
  • How will you communicate with me during the campaign? Set expectations about reporting frequency, feedback after open homes, and how offers will be presented.
  • What is the agency agreement duration? Standard sole agency terms are 60 to 120 days. Be cautious of agents requesting very long terms (180+ days) as this locks you in if the relationship is not working.

Auction Fees and Costs

Selling by auction involves some additional costs compared to private treaty:

  • Auctioneer fee: $400 to $1,000 if charged separately from commission. Some agents include this in their commission; others do not.
  • Higher marketing spend: Auction campaigns typically require a more intensive (and expensive) marketing campaign to build competition among buyers in a short timeframe. Expect to spend toward the upper end of the marketing cost ranges.
  • Risk of passing in: If the property does not reach the reserve price and passes in at auction, you will still have incurred all marketing costs. The property then typically enters private treaty negotiation.

Despite these additional costs, auctions can be highly effective in competitive markets where strong buyer demand drives bidding above expectations. Your agent should help you assess whether auction or private treaty is the better strategy for your specific property. Timing also matters — our article on the best time to sell a house in Australia explains how seasonal trends affect buyer competition and sale prices.

Do You Need a Contract Review When Selling?

As a seller, you also need to ensure the contract of sale is properly prepared and protects your interests. Your solicitor or conveyancer prepares the vendor's contract, but it is wise to understand the key terms — particularly around settlement timeframes, deposit requirements, and any special conditions. For a comprehensive overview of what property contracts contain, see our property due diligence checklist.

If you are buying your next property while selling, understanding both sides of the transaction is critical. First home buyers moving from renting to owning should also review our first home buyer guide for a complete overview of costs and processes.

Frequently Asked Questions

Selling? Make Sure Your Contract Is Right

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