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Real estate agent commission percentages and fees in Sydney and NSW can vary widely from agent to agent and area to area.
Based on our data, the average real estate commission rate in Sydney is 2.1%. Sydney real estate commission rates range from around 1.8% to 2.5%, while in regional NSW the range is generally between 2.5% and 3.5%.
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Find out the average agent commission percentage for your NSW suburb by entering the suburb’s name below.
The figures shown are an average. Agents charge different amounts based on a range of factors, including property type, value and likelihood to sell.
Things can get a little more complicated to work out if your agent has a tiered commission structure. With tiered commission, a percentage is set up until an agreed upon target amount, then an increased percentage is set for any amount above that target.
When calculating real estate agent fees in Sydney and NSW, you also need to factor in any additional costs that aren’t included in an agent’s commission.
See more about these costs below, and for help working them out try our cost of selling your property calculator.
Learn more: Sydney Property Market Trends
There are quite a few costs and fees involved with selling a house in Sydney and NSW. It’s important to properly budget for these costs to avoid any nasty surprises.
Obviously a major cost for selling a house in NSW is real estate commission and fees. What is included in an agent’s commission can vary from agent to agent, so it’s very important to find out up front exactly what is included. There’s no real standard or typical real estate agent commission or fee in NSW so make sure you compare a few different agents’ fees.
Marketing your home properly is extremely important for getting the best price for your house, and can make up a significant portion of the cost of selling your house in NSW. There are several channels you should consider to get your house the most exposure.
A good agent will come up with an effective marketing plan tailored to your house and market. Marketing costs are often charged in addition to a real estate agent’ commission fee in Sydney and NSW.
Online marketing is crucial, as this is now the main channel used by house-hunters. There’s a couple of websites you should be listed on to reach the most potential buyers, so costs can add up.
The most popular real estate sites in NSW are domain.com.au and realestate.com.au.
Costs for a standard listing are around $600 but can go up to around $2,000 for a premier listing.
As important as it is to advertise online, traditional mediums such as newspapers, magazines, brochures and flyers shouldn’t be neglected.
Not everyone searches for houses online – many older or less computer savvy people are likely to prefer traditional methods.
Also, many people are likely to browse both online and traditional listings to search for their perfect home. Advertising in both types of channels means your listing is more likely to be seen.
The biggest newspapers in NSW are the Sydney Morning Herald and the Daily Telegraph, but local newspapers such as the Mosman Daily, Wentworth Courier and Manly Daily can be good options to attract local buyers.
You should compare a few different agents and talk to them about their ideas to market your house. A good real estate agent will be able to work with you to develop a clear and well thought-out marketing strategy that best suits your house and market demographics.
Professional real estate photography that shows your home in the best light is a very important part of an effective marketing strategy. A good photographer will show off your home’s most appealing features from the most flattering angles.
Photos are the most important part of a real estate listing and make the biggest impression on potential buyers. Quality photos will capture people’s attention and help your listing stand out in what is often a crowded market. Photography is sometimes included in a real estate agent’s fees in Sydney and NSW, but not always. At the very least, a good agent will be able to organise or recommend a quality photographer.
Many vendors choose to use professional home staging services to get their house looking its absolute best before photography takes place. It’s also a good idea to do this before inspections.
Home staging involves arranging furniture and ornaments in an appealing way, while removing clutter and mess. Professional home stagers will place additional furniture in your house if they feel it’s needed.
Professional home staging in NSW can range between $2,000 and $8,000 (including furniture rental if needed). Though it can be expensive, it’s a very worthwhile investment in marketing your home.
Of course, home staging is something you can also do yourself if you’d prefer not to use professional services. Try to cast a critical and objective eye over things when doing this. A good rule of thumb is the less clutter, the better!
If you sell your house by auction you will need to pay for an auctioneer. Auctioneer fees in Sydney and NSW range from $200 to $1,000.
Keep in mind, the fee is charged per auction so you’ll need to pay multiple sets of fees if it takes more than one auction to sell your house.
The seller of a house is responsible for the conveyancing and legal costs associated with preparing a contract for sale. Solicitors in Sydney and NSW usually charge between $700 and $1,300 for this.
It’s a good idea to familiarise yourself with everything that’s involved with the conveyancing process and any other potential costs you may be liable for.
Learn more: Conveyancing Costs – Fees By State
There are two main types of real estate commission structure in NSW: fixed commission and tiered commission.
With fixed commission, a real estate agent sets a fixed percentage for their fee that stays the same no matter how much a house sells for. For example, if a house sells for $500,000 with a fixed commission rate of 2% then the fee charged by the agent will be $10,000 (500,000 x 0.02 = 10,000).
With a tiered commission structure, a commission percentage is set up to an agreed upon target amount, then a higher percentage is set for any amount above the target.
For example, a rate of 2% might be set up to a target amount of $500,000, then a rate of 5% for anything above $500,000. Under this commission structure, if a house sold for $550,000 the agent would receive a fee of $12,500 (2% of 500,000 plus 5% of 50,000).
Tiered commission gives real estate agents an extra incentive to achieve a higher sale price for your home. You may end up paying a higher fee to your agent, but only if they get you a higher price.
Tiered commission structures are generally more suited to higher value properties.
Learn more: What Are The Different Real Estate Agent Fee Structures?
No, real estate agent fees and commission percentage rates are not set or regulated in Sydney and NSW.
Agents are free to set whatever rates they want, so rates can vary widely from agent to agent.
The main factors that influence real estate agent fees and commission percentages in Sydney and NSW are:
Location is a big factor in influencing real estate commission rates – rates are generally lower in Sydney than they are in regional NSW. This is because there are more agents in Sydney competing with each other, which drives down rates, and because there are more houses available to sell, meaning there are more opportunities to make sales.
In regional NSW, there is less competition between agents and less houses going on the market. Less competition means agents can keep their rates higher, and they need to charge more as there are less opportunities to sell.
How much an agent earns from selling a house depends on how much it sells for, so property value has a large impact on agents’ rates.
Agents can afford to set lower rates for more expensive houses, as a smaller commission percentage on a higher value house will still make them a good amount of money. On the flip side, agents need to charge a higher rate on less expensive houses to make sure they still receive a fair payment for their work achieving a sale.
More experienced agents generally charge higher rates, and vice-versa for less experienced agents.
Experienced agents with a proven history of strong results are able to command higher fees, while newer agents generally charge lower rates to help build up their experience. You can often get a great deal with a less experienced agent, but this can be risky if you’re not completely confident in the agent’s abilities.
Newer agents should have some recent sales you can look at to see if they’ve been able to get good results for houses similar to your own.
Not all agents include the same services in their fees. Sometimes an agent that seems cheaper may not offer as many inclusions as other agents.
Make sure you know exactly what is included in an agent’s fees before you make a decision.
Learn more: How To Compare Real Estate Agents
Yes, you can absolutely negotiate on agent fees and commission percentage in NSW and it’s something we encourage you to do. Agent fees are not regulated and it’s common practice for agents to lower their rates to secure your business.
Generally, you will have a better chance of negotiating a lower rate if you’re selling a high value property with desirable features. Agents will be keen to make a sale on a more expensive house and will still earn a good amount even with a lower rate.
It’s a good idea to mention that you are talking to multiple agents. They’ll be more likely to negotiate if they know they are competing with other agents for your business.
Be aware of the average commission rate in your area before you negotiate, so you know what a good rate is relative to your location. Also be wary of agents whose rates seem too low – make sure you look at their recent results and find out exactly what is included in their fees.
When choosing a real estate agent, it’s tempting to just go for the one that has the lowest rate. However, this is a risky option.
You should consider why their rates are lower – they may have a poor record of results or offer fewer inclusions in their fees.
A cheaper agent may actually end up costing you more money if they are less capable than agents with higher fees. They may not be able to get you the best price for your house, and it could take them longer to sell – meaning more money spent on marketing costs.
If you’re considering a low commission agent, you should definitely look at their performance history in selling houses similar to your own – and at how long it’s taken them to get sales.
There are a huge number of real estate agents in NSW competing for your business, so it can be a tricky process deciding which one to go with.
Our compare tool lets you review recent sales results of local agents in your area. You can use this tool to narrow your choice down to just a few agents, then arrange to have a chat with them. You should ask them about what they include in their fees, what ideas they have for a marketing strategy and what kind or results they’ve been getting recently for properties like yours.
You should also feel comfortable with your agent and trust that they will do a good job.
As well as marketing, photography and conveyancing costs, there are some other possible costs of selling your house in NSW. It’s a good idea to be aware of these costs so you can properly budget.
When you sell your home you will most likely need a removalist to help you move, or at least need to rent a van or truck if you plan on doing all the moving yourself. Depending on the size of your home, a removalist can cost anywhere between $500 and $3,000 in NSW.
It might be a good idea to renovate your home to help you get a better price, or perhaps you have repairs that need to be done to get it to a saleable condition. This kind of work is a worthwhile investment, but can be quite substantial depending on what needs to be done.
You will most likely need to pay capital gains tax if you’re currently living in the house you’re selling, and if you sell it for more than what you paid for it. The ATO website has more information on this.
Another cost you may not be aware of is the mortgage discharge fee your lender may charge for ending your mortgage early. These costs are generally between $150 and $1,000 – you should speak to your lender for more information about this.
Ready to choose a real estate agent? Compare agents in your area now.
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