Real estate agent percent commission fees IMAGE Canva
Real estate agent percent commission fees IMAGE Canva
  • Agent fees and commission percentages are different in every market in Australia.
  • Real estate agent fees can range from 0.5% to 1% of your home’s value.
  • Real estate agent commission is an average rate of 2% to 2.5% across the country.

Be sure to ask real estate agents what their commission and fee structures are when interviewing them. This will allow you to compare them on an even playing field and choose the best agent for you and your property.

When you sell a property, you face many fees you might not think about. Agent commissions are not regulated in Australia, and knowing the real estate agent commission and fees for your market area is important in determining the overall cost of selling your property.

The commission and fees charged by real estate agents vary, and it’s important to compare the overall cost of selling your property with different agents to ensure you’re getting the best value for money.

Commission and fees for real estate agents

It’s important to understand the difference between fees and commission and to ask your real estate agent for a clear breakdown of both. Some agents may charge a combination of fees and commission, while others may only charge commission.

Often, the more agents there are in an area, the lower the average commission rate will most likely be, due to the competition between agents. It’s also worth noting that while some agents may have lower commission rates, they may charge higher fees.

Real estate agents fee structures

Real estate agent fees can range from 0.5 per cent to one per cent of your home’s value.

An agent’s fee for selling a house is actually not tied to the sale of your property. The fees is a payment for services delivered by the real estate agent, for example, to cover the cost of advertising or marketing your property, and the cost of preparing contracts and paperwork.

Real estate agents’ fees for marketing and advertising will vary according to the amount of advertising you want to do. This is one thing you generally don’t want to skimp on. The greater the advertising reach, the greater your chances are of selling your house more quickly and for a higher price.

Fees are usually quoted as a fixed amount or an hourly rate and are usually negotiable.

Real estate agent commission structures

Commission, on the other hand, is a percentage of the sale price of your property and is paid to the agent upon successful completion of the sale.e for their role in the sale of your property.

The commission percentage rate you pay your real estate agent is typically negotiated depending on the location and the type of property you are selling.

Real estate agent commission can start from 1.6 per cent to four per cent of the sale price, with an average rate of two per cent to 2.5 per cent across Australia.

Fixed and tiered real estate commission rates

There are two main options when it comes to commission calculation: fixed and tiered. Fixed commission is based on the sale price multiplied by the agreed commission rate, while tiered commission is based on performance and has two different commission rates based on the agreed sale price.

In the case of a tiered commission structure, the agent will set an upper limit for a lower commission and charge a higher commission for amounts over that amount.

This means, on top of the low initial rate, you may be charged up to 10 per cent more for anything above a certain property value.

For example, if their lower limit is $500,000, they may charge 2.0 per cent. If your house sells for $520,000, they may charge 10 per cent on the extra $20,000.

Or, an agent may charge you 2.6 per cent on the first $850,000, but a further six per cent on any value above that.

Though you may be paying more, this practice acts as an incentive for agents to work harder for a higher sale price, meaning more money in your pocket at the end of the day.

Average real estate agent commission in Australian cities

Real estate agent fees in Perth

In Western Australia, real estate agent fees typically range between 1.5 to 2.5 per cent. In the metropolitan area of Perth, the average commission rate is around 2.0 per cent. In some inner city suburbs, such as Subiaco, the average rate is around 1.6 per cent. On the other hand, in popular areas such as Mount Lawley, the average rate is around 2.2 per cent.

Real estate agent fees in Sydney

In inner city areas of Sydney, commissions usually range between 1.4 and 2.5 per cent. For example: the Glebe commissions average is 2.15 per cent; in Surry Hills, the average is 1.97 per cent. Commissions in Woollahra average around 1.95 per cent and over the bridge in St Leonards, commissions average around 2.02 per cent.

Real estate agent fees in Melbourne

In Victoria, real estate agent commissions range between 1.6 to 3.0 per cent. In metropolitan areas like Melbourne, they tend to be a little lower. 2.5 per cent is often at the high end of the scale, covering areas such as Central Melbourne. On the outskirts of the CBD, rates are lower. For example, in St. Kilda, the average commission rate sits at 2.01 per cent; in Brighton, 1.55 per cent; and in Sandringham, 1.87 per cent.

Real estate agent fees in Brisbane

In Queensland, real estate commissions range between 2.5-3.3 per cent. Brisbane City has an average commission rate of 2.62 per cent, while Wellington Point sits at an average of 2.86 per cent.

Real estate agent fees in Adelaide

The average commission rate in Adelaide typically ranges between 2.0 to 3.0 per cent. The average in Adelaide CBD is 2.45 per cent, while in the suburbs it can range from 2.0 to 2.7 pe cent.

Negotiating fair real estate agent commission

Be sure to negotiate the terms and conditions of your agreement with your agent, as it’ll tell you what commission structure will be used, and what fees are covered, so you know what you’re paying for.

Real estate agent commissions are not as simple as a straightforward percentage of the sale price of a property. There are many factors that influence the amount that an agent earns, including the market conditions, their agreement with the real estate agency and their operating costs.

While it might look like real estate agents are making a large profit, it’s important to keep in mind that their share of the commission is only a portion of the total amount they earn.

Additionally, they have operating costs like marketing, technology, and other expenses that they need to pay for.

Some work on a split-model with their real estate agency, so they split the commission with the agency. Other agents are self-employed and work on a commission-only basis, which means they only get paid when a property is sold. This can result in periods of uncertainty and financial instability, especially if the market is slow.

It’s also worth noting that real estate agents are professionals who have gone through extensive training, licensing and have built a reputation and expertise in the real estate industry. They are responsible for negotiating deals and managing the sale process from start to finish, which can be time-consuming and complex.

Research local agents and their fees

When it comes to negotiating fees, it’s also about finding the right balance. While it’s important to get the best possible deal, it’s also important to choose an agent who you believe will do the best job for you. Take the time to do your research, compare agents and get all the information you need to make an informed decision.

Don’t be afraid to ask questions and have an open and honest discussion with potential agents about their experience, process, and approach. A good agent should be transparent, communicative, and have a solid plan in place for selling your property.

Remember that finding the right real estate agent is a two-way street. You want to find an agent that you feel comfortable with, who you trust and who will work hard to get you the best possible sale price for your home. At the same time, the agent is also looking for a client who they feel comfortable with, who they can trust and who they believe they can help.

It’s  a good idea to ask for references and talk to past clients to get a sense of the agent’s style and how they handle negotiations and the sale process. A good agent should be able to provide you with testimonials from satisfied clients.

Additionally, you can also check their online presence and reviews. Look at their website, social media profiles, and real estate listings to see their marketing skills and approach to selling properties.


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