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Home › Real Estate Agent Fees › How Much Do Real Estate Agents Charge?
Real estate agent commission in Australia is nearly always a percentage of a house’s selling price. This can vary quite significantly from state to state and agent to agent, but generally Australia’s average real estate agent commission is 2–3%.
How much a real estate agent charges can depend on many different factors, including:
Average real estate commission rates within each state can be very different, with commission generally lower in cities than in regional areas.
Agent fees are not regulated anywhere in Australia, so the commission a real estate agent charges comes down to the individual agent. This is why fees can vary so much – and why it’s important to find the best agent.
This guide will give you a good idea how much real estate agents charge to sell houses in different areas and what the different factors are that affect agents’ fees.
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The average real estate agent commission for selling a house is usually between 2% and 3% but this depends on your location. You can check your state’s average agent commission in the table below.
The average real estate agent commission in Brisbane is structured a little differently to the rest of the country. Agents typically charge 5% commission on the first $18,000 of your property’s sale price and 2.5% for the remainder. This is a popular structure both in Brisbane and regional Queensland.
A property sale of $535,000 at the above average rates would earn the agent $13,825 in commission:
18,000 x .05 = 900
517,000 x .025 = 12,925
900 + 12,925 = 13,825
Sydney’s average real estate agent commission is 1.8% to 2.5%, only slightly higher than the average in Melbourne. The reason for such low average commission is because property prices are higher in Sydney (and in Melbourne) than other Australian cities. Agents can more easily earn a good commission with a low rate.
If your agent charged a 2.3% commission and your property sold for $750,000, you would need to pay your agent $17,250 in commission: 750,000 x .023 = 17,250.
As Australia’s capital city, Canberra has a unique real estate market. This is due to the high number of well-paid public servants and the high level of restrictions on land development. The low supply – high demand environment has created high property prices and higher average real estate commission throughout the ACT. You can expect to pay between 2.5% and 4% in agent commission when selling in Canberra, which is the highest average real estate agent commission in Australia.
The average real estate agent commission in Melbourne is 1.6% to 2.5%. This increases in regional Victoria because property prices are lower and agents adapt their commission to ensure they earn comparable fees.
If you sold a property in Melbourne for $600,000 and your agent charged a 2% commission, you would pay $12,000 to the agent in commission: 600,000 x .02 = 12,000.
The REIT has created a scale of fees and commissions that they recommend agents use. Although not regulated, this guides agents on price and has created a high average real estate agent commission in Hobart and regional areas of 3.25%.
In Darwin, the average commission rate is 2.55%. This is higher than many other Australian cities because Darwin has a smaller population. You can also expect to pay the same average rate in regional NT.
The average agent commission in Adelaide is much lower than the rest of Australia because prices are much cheaper on average. In Adelaide, you will pay between 2% and 2.75%, but the higher rate is usually reserved for regional areas, which can go as high as 3%.
Fee calculation in words for Adelaide
In Perth, the average real estate agent commission is between 2.44% and 3.25%. This is higher than more populous cities, like Sydney and Melbourne, because property prices are lower in Perth.
As fees can vary quite significantly from suburb to suburb, it’s best to look at the average commission in your postcode.
To make this super easy, use our tool below. Just enter your suburb below to see your average local commission rate.
You can also hover over the map to see how much the average rate changes from suburb to suburb.
The figures shown are an average. Agents charge different amounts based on a range of factors including property, price and likelihood to sell.
No, real estate agent fees aren’t regulated in Australia, which is why they can vary so much. Agents are free to set whatever commission rates they like.
How much an agent charges to sell a property is influenced by supply and demand within their area, and by their experience and history of results.
See what the rates are for different agents in your area:
Real estate agent commission in Australia is not regulated, so you can absolutely negotiate with agents. How well you can negotiate will have a big effect on the rate they end up charging you, so it’s important to get your negotiation tactics down pat.
The best way to prepare for negotiations is to do your homework and be aware of the average real estate agent commission in your area. Compare different agents in your area to see how their rates differ, and shortlist a few to speak to.
Let each agent know you’re speaking to multiple agents and are looking for a competitive rate. They will be much more willing to negotiate if they know they are going up against other agents.
Agents are more likely to lower their rate if your house has a relatively high value, as they will still make a good amount on a high sale price. If you are selling at a time or in an area where there are few houses on the market, then agents will be more likely to negotiate to secure your business.
So do your research and be aware of what’s going on in the market.
Ready to compare agents in your area?
Advertising costs are not always included in real estate agent commissions in Australia, so be aware that this can add to the total cost they charge for selling your house.
You should make sure you are completely clear on what is included in an agent’s fees and whether this covers advertising costs. If it doesn’t, costs can increase significantly.
An agent’s rate that seems high at first may actually be quite competitive if advertising costs are included. On the other hand, a low rate may end up adding up to more than you realised if advertising costs are added later.
Proper marketing is vital for getting the best price for your house, so it’s important you allocate enough money for this. Just make sure you’re aware of average advertising costs in your area to ensure you pay a fair price and to help with your negotiations.
The following table provides average costs for marketing and advertising around Australia. Check the average cost in your area and add it to your calculations when working out your selling costs.
(45-day campaign)
The amount you pay should have a direct impact on the quality of your marketing and advertising campaign, so be sure to discuss the details with your chosen agent or compare the marketing inclusions of a few agents. You can expect to pay at least a few hundred dollars less in regional areas around Australia.
Learn more: Costs Of Selling A Property
How long it takes to sell your house can affect how much you end up paying in fees, as the longer your house is on the market the more it can end up costing you.
The average time taken to sell a house in Australia is currently around 30 days, though this varies by area and according to the time of year. Regional and metro areas also differ in average time on market.
If it takes longer than expected to sell, you may have to pay extra costs to extend your advertising online and in newspapers or to step up your marketing efforts. If you’re selling by auction you will probably need to pay multiple sets of auctioneer fees if it takes more than one auction to sell.
So it makes sense to be aware of the average time it takes to sell a house in your area and how much it may cost you if it takes longer than this to sell.
Learn more: Sell Your House Fast – 7 Best Tips
If you decide to sell at auction, you will need to pay additional auction fees. Average auction fees in Australia are between $200 and $1,000. Some real estate commissions include auctioneer’s fees, so you will not need to pay extra. However, you will often have to pay a small fee and it differs between auctioneers.
Average conveyancing fees in Australia usually fall between $700 and $1300. The fee often includes basic searches and you will have the option to pay more for additional searches. Check the inclusions with your chosen conveyancer so you know what the fee covers. Read more about conveyancing fees in our handy guide.
Real estate agent commission in Australia is structured in two different ways: fixed commission and tiered commission.
Fixed real estate agent commission is the most common fee structure and the simplest. With a fixed commission, a set percentage of the selling price is charged as the agent’s fee. This percentage doesn’t change, no matter what the house sells for.
For example, if your agent has a fixed commission rate of 2% and your house sells for $500,000, the fee will be $10,000:
$500,000 x 0.02 = $10,000
The tool below makes it super easy to see how much a real estate agent will charge at different fixed commission rates for different selling prices. Enter the sale price then use the toggle bar to adjust the commission rate.
Property Sale Price ($) Agent Commission % $0.00Total Agent Commission
Total Agent Commission
Tiered real estate agent commission involves multiple percentage rates that depend on the house’s sale price. Generally, a rate is set up to an agreed target selling amount, then a higher rate is set for any amount above the target. The idea behind tiered commission is that the agent has a greater incentive to achieve a higher selling price.
For example, a rate of 1.9% is set for up to $500,000, then 5% for any amount above $500,000. If the house were to sell for $550,000, the agent would receive a fee of $12,000:
1.9% x 500,000 = $9,500
5.0% x 50,000 = $2,500
$9,500 + $2,500 = $12,000
With the above example, the real estate agent commission is higher than what it would be under the fixed rate in the first example. However, with a greater incentive to reach a higher selling price, you may end up coming out better off when all is said and done.
One thing to keep in mind is that it may take longer to sell your house under a tiered commission structure, as the agent is more likely to hold out for longer for a higher price.
Tiered commission is also generally more effective for higher value houses and may not be appropriate for the lower end of the market.
Learn more: What Are The Different Real Estate Agent Fee Structures?
By now you should have a good idea of the different factors that contribute to the average real estate agent commission in Australia. Ready to put your house on the market? Compare agents in your area now.
Fair real estate agent commission in Australia depends on where your property is situated. Commission under 3% is usually fair in most locations and under 4% can be fair in places like the ACT. Check the table above for average commissions in your local area.
Real estate commission in Australia is not regulated, so real estate agents are free to set their own rate. However, it’s usually based on the local property market and other local conditions. Around Australia, you can expect to pay anywhere between 1.6% and 4%.
Most real estate agents make commissions that fall somewhere between 1.6% and 4% depending on your location.
In some areas around Australia, real estate agents can earn 3% commission. However, it differs between locations and between agents. Check the average real estate agent commission in your local area to make sure your chosen agent’s commission is reasonable.
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