How Much Do Real Estate Agents Charge?

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Real estate agents in Australia nearly always charge a percentage of a house’s selling price as their fee. This can vary quite significantly from state to state and agent to agent, but generally the percentage real estate agents charge is between 2-3%.

How much a real estate agent charges can depend on many different factors, including location, competition, house value and the agent’s experience.

The average commission rate can be quite different from state to state, ranging from around 2% to just under 3%. Rates within each state can also be very different, with commission rates 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.

What is the average real estate agent fee?

The average real estate agent fee for selling a house is usually between 2-3% but this very much depends on your location. Average fees are different in every state but can even vary quite significantly from suburb to suburb.

To find out how much you’ll need to pay an agent to sell your house, 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 what the average commission rate in your area is.

You can also hover over the map to see how much the average rate changes from suburb to suburb.

Enter suburb to view average agent fees for your area

Avg. Agent Fee (%)
  • 0.00% - 1.50%
  • 1.50% - 1.75%
  • 1.75% - 2.00%
  • 2.00% - 2.25%
  • 2.25% - 2.50%
  • 2.50% - 2.75%
  • 2.75% - 3.00%
  • 3.00%+
Avg. Agent Fee (%)
  • 0% - 5%
  • 5% - 6%
  • 6% - 7%
  • 7% - 8%
  • 8% - 9%
  • 9% - 10%
  • 10% +

The figures shown are an average. Agents charge different amounts based on a range of factors including property, price and likelihood to sell.

Are real estate agent fees regulated in Australia?

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:

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Real estate agent negotiation tactics – can you negotiate with agents?

Real estate agent fees aren’t regulated in Australia, so yes, you absolutely can negotiate with agents. How well you can negotiate with agents 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 rate in your area and what different agents are charging. Compare different agents in your area 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.

Real estate agent negotiation tactics
It’s a good idea to negotiate with your real estate agent

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?

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How much are the advertising costs of selling a house?

Advertising costs are not always included in an agent’s commission and 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 the usual advertising costs in your area to ensure you pay a fair price, and to help with your negotiations.

Learn more: Costs Of Selling A Property

What is the average time taken to sell a house?

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 around 66 to 77 days, though this can vary by area and according to the time of year.

House for sale
It can sometimes take longer than the average time to sell your house

If it takes long 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

What are the different real estate agent commission structures?

There are two types of real estate agent commission structure: fixed commission and tiered commission.

Fixed 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.

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Total Agent Commission

With a tiered commission, multiple percentage rates are used depending on the price the house sells for. Generally, a rate is set up to an agreed on 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 $11,500.

With the above example, the agent fee 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 how much real estate agents charge. Ready to put your house on the market? Compare agents in your area now.

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