Selling your property with a real estate agent will generally mean you will pay them a percentage of your total sale price, called the commission rate. Some agents may operate on a fixed dollar amount. But did you know that the amount of money you will pay your agent also varies between states and the location of your property?
Our experience has given us the know-how to guide you through what you can expect to pay in each of the eight states and territories, explain what the common agent fee structures are and give you the information you need to know to be able to decide which of the agent fee structures are best for you.
Queensland Real Estate Agent Fee Structure
However in May 2014 the Office of Fair Trading introduced new legislation called the Property Occupations Act 2014. This act came into force later in 2014 and deregulated real estate commissions in Queensland. This means that you will be able to negotiate with your agent and choose the right one based on both commission rate and the services they can provide you.
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NSW, SA, VIC, ACT, WA and TAS Real Estate Agent Fee Structures
Each of the other six states and territories have their own average commission rate, but there are no fixed rates. So this means it is up to you to negotiate the best commission rate and any other services they can provide to market and sell your property.
With many years of experience working with property sellers across Australia, we provide the below estimated average commission rates charged by agents in each state and tabled it to allow easy comparisons. Remember, these will vary, sometimes significantly so, to that available in your local area and for your property.
| State | Average agent commission rate | Example commission payable on sale of $500,000 property, excluding GST |
| Queensland | 2.45% | $12,250 |
| New South Wales | 2.10% |
$10,550 |
| Australian Capital Territory | 2.17% |
$10,850 |
| Western Australia | 2.44% |
$12,200 |
| South Australia | 2.06% |
$10,300 |
| Tasmania |
3.25 |
$16,250 |
| Victoria | 2.14% |
$10,700 |
How negotiated commissions actually work
Commission rates are supposed to work by encouraging the agent to sell your property at a higher price in order to earn more money. So it is like an incentive for their bank balance to work towards achieving the best price possible.
You are free to structure an arrangement that works for you and your agent, be it a flat rate, a percentage of the sale price or a sliding scale where the agent receives more if the property is sold above an agreed sum.
At the end of the day you are seeking to negotiate a commission rate which is agreeable to both you and your agent.
It isn’t however all about price, the agent’s experience and service will likely contribute more to the amount of money you receive at the end of the transaction, so ensure you give these factors considered weight and attention when selecting your best agent.
A flat rate commission works by both you and your agent agreeing upon a fixed sum of money to pay them upon the sale of your property. It is not based upon the final sale price your property actually achieves. A flat rate commission is a great choice if you would like certainty in knowing the amount of commission you will end up paying, which really can make budgeting for the selling process much easier. However, it has been known to happen that agents will sell a property with a flat rate commission very quickly and at a lower price because they have no vested financial interest in achieving a higher one.
A tiered percentage commission rate works by using a sliding scale, with a set percentage rate agreed upon up to a certain dollar figure and a higher percentage rate on the dollar amount above it. For example, you agree upon a rate of 3% commission up to $300,000 and a 5% commission rate for every dollar above $300,000. A tiered percentage commission rate works by encouraging the agent to work just that little bit harder to raise the sale price of your property, as when it sells for more, they earn more.
This type of commission structure may suit you if you want to achieve the best possible price for your property and if not knowing the exact amount of fees you need to pay is okay with you and your budget. With this option you could also end up paying more in fees, but end up with more cash in the hand at the end of the sale.
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How regulated commissions actually work
Regulated commissions for agents in QLD work by providing a cap to how much agents can charge. Currently Queensland is the only state in Australia which has regulated commissions, however as mentioned this is set to change in late 2014 when real estate agents commissions will be deregulated. 2018 Update: Real estate agent commissions in Queensland are now unregulated and no longer have a cap.
At the time of writing Queensland legislation dictates that an agent cannot charge over 5% for the first $18,000 and no more than 2.5% for the remainder of the sale price. A regulated commission in Queensland is your only option at the moment, with the advantage that you will know the top amount you could end up paying when your property sells. But that does not mean you cannot negotiate a lower rate as only the maximum rate is set in stone, so you could score a lower one for your property transaction.
To conclude, all of Australia’s states except for Queensland have negotiated commission rates, meaning that you have some say in how much you will pay your agent. Queensland has set the maximum amount that its agents can charge, but that this is set to stop later in 2014 when deregulation of agent fees occurs.
The two main types of negotiated commission rates are tiered percentage and flat rate and allow negotiation with an agent to agree upon a mutually beneficial rate. A regulated commission means you are pretty much going to have to pay what the government tells you to pay an agent, but that there is a chance of some negotiation.
For ease, we have detailed how an agent’s fees are calculated and what the average percentage range is to sell your house or unit within Australia.
NSW currently does not have any regulation for what can real estate agents charge to sell your property. You can always negotiate the final commission rate you pay to an agent if you are on a strict budget. The fee will vary depending on the location of the house or unit as well as the experience of the agent, the value of the property and the market at the time of sale. If the house is located in Sydney, you will find that agents’ commissions are more competitive due to a higher turnover of properties for sale.
Our experience has shown us that real estate commission rates in NSW are approximately 1.8% to 3.5% with an average rate of 2.10%. Sydney-based sellers will look to pay between 1.8% and 2.5%; those in the regional area will pay around 2.5% to 3.5% due to lower prices and property turnovers.
Based on an average commission of 2.10% in NSW, a seller will pay $10,500 for a property valued at $500,000. Sydney-based sellers will look to pay between 1.8% and 2.5%; those in the regional area will pay around 2.5% to 3.5% due to lower prices and property turnovers.
NSW Commission Calculator
Using the average state agent fee, we can actually calculate an estimated real estate agent commission based on a property sale price. Just enter your estimated property sale price or value to receive a rough agent fee you could expect to pay in New South Wales.
For more information, just visit our NSW agent fee calculator page.
Average Agent Commission in Melbourne and Victoria
Victoria currently does not have any set regulations on agent fees. You can always negotiate the final commission rate you pay to an agent or shop around to find one you prefer. The final fee will vary depending on supply and demand of the property, its location, the agency firm, their experience and the market at the time of sale. If your house is in Melbourne, you will find that agents’ commissions are more competitive due to a higher turnover of properties.
Our experience has shown us that real estate commission rates in Victoria are approximately 1.6% to 3.0% with an average rate of 2.14%. Melbourne-based homeowners will look to pay between 1.6% and 2.5%; whereas those in the regional area will pay around 2.5% to 3.5% due to lower prices and property turnovers.
Based on an average commission of 2.14% in Victoria, a seller will pay $10,700 for a property valued at $500,000.
VIC Commission Calculator
Using the average state agent fee, we can actually calculate an estimated real estate agent commission based on a property sale price. Just enter your estimated property sale price or value to receive a rough agent fee you could expect to pay in Victoria.
For more information, just visit our VIC agent fee calculator page.
Average Agent Commission in Brisbane and Queensland
Our experience has shown us that real estate commission rates in Queensland are approximately 2.45% to 3.0% with an average rate of 2.45%. Brisbane and Gold Coast based sellers can expect to pay between 2.45% and 2.75%; those in the regional area will pay around 2.5% to in excess of 3.0% due to lower prices and property turnovers.
Based on an average commission of 2.45% in Queensland, a seller will pay $12,250 for a property valued at $500,000.
QLD Commission Calculator
Using the average state agent fee, we can actually calculate an estimated real estate agent commission based on a property sale price. Just enter your estimated property sale price or value to receive a rough agent fee you could expect to pay in Queensland.
For more information, just visit our QLD agent fee calculator page.
Average Agent Commission in Perth and Western Australia
Western Australia currently does not have any fee regulations restricting what agents can charge to sell your property. You always have the opportunity to negotiate the final commission rate you pay to an agent. The fee will vary depending on the location of the house or unit and the agent’s closing ability.
Our personal experience has shown us that real estate commission rates in Western Australia are approximately 2.5% to 3.25% with an average rate of 2.44%.
Based on an average commission of 2.44% in Western Australia, a seller will pay $12,240 for a property valued at $500,000.
WA Commission Calculator
Using the average state agent fee, we can actually calculate an estimated real estate agent commission based on a property sale price. Just enter your estimated property sale price or value to receive a rough agent fee you could expect to pay in Western Australia.
For more information, just visit our WA agent fee calculator page.
Average Agent Commission in Hobart and Tasmania
Tasmania is currently the most expensive state in Australia when it comes to real estate fee commissions. It does not currently have any fee regulations limiting the amount that agents can charge to sell your property. You can negotiate the final commission rate you pay to an agent to try to save a few dollars. The final fee will vary depending on the location of the house or unit and the agent’s knowledge of the market.
Experience has shown us that real estate commission rates in Tasmania average around 3.25%. This does vary somewhat because of published guidelines offered by The Real Estate Institute of Tasmania that advises agents on possible fee charges. Their guide recommends that agents can charge the following:
- $1104 plus 6.02% for sales between $10,001 and $50,000.
- For sales between $50,001 and $100,000, a fee of $3,512 plus 4.22% is appropriate.
- For properties that sell over $100,000, the fee is $5,523 plus 3.99% in commission.
Based on an average commission of 3.25% in Tasmania, a seller will pay $12,240 for a property valued at $500,000.
TAS Commission Calculator
Using the average state agent fee, we can actually calculate an estimated real estate agent commission based on a property sale price. Just enter your estimated property sale price or value to receive a rough agent fee you could expect to pay in Tasmania.
For more information, just visit our TAS agent fee calculator page.
Average Agent Commission in Canberra (ACT)
Canberra currently does not regulate what agents can charge to sell your property. You can always negotiate the final commission rate you pay to an agent. It is necessary to make commission price comparisons to ensure you get a good deal. The final fee will vary depending on the location of the house or unit, the market at the time of sale as well as the agent’s knowledge of buying and selling.
Our experience has shown us that real estate commission rates in the Australian Capital Territory (ACT) are approximately 2.5% to 4.0% with an average rate of 2.17%.
Based on an average commission of 2.17% in Canberra, a seller will pay $10,850 for a property valued at $500,000.
ACT Commission Calculator
Using the average state agent fee, we can actually calculate an estimated real estate agent commission based on a property sale price. Just enter your estimated property sale price or value to receive a rough agent fee you could expect to pay in the Australian Capital Territory.
For more information, just visit our ACT agent fee calculator page.
Average Agent Commission in Adelaide and South Australia
South Australia currently does not have any regulations on the amount an agent can charge to sell your property. You can always try to negotiate the final commission rate you pay to an agent. The final agency fee will vary depending on the location of the house or unit, property value, supply and demand and an agent’s knowledge of the market. South Australia has the lowest real estate commission rate in the country.
Our experience has shown us that real estate commission rates in South Australia are approximately 2.75% to 3.0% with an average rate of 2.06%. Adelaide-based sellers will look to pay between 2.0% and 2.75%; those in the regional area will pay around 2.75% to 3.0% due to lower prices and property turnovers.
Based on an average commission of 2.06% in South Australia, a seller will pay $10,300 for a property valued at $500,000.
SA Commission Calculator
Using the average state agent fee, we can actually calculate an estimated real estate agent commission based on a property sale price. Just enter your estimated property sale price or value to receive a rough agent fee you could expect to pay in South Australia.
For more information, just visit our SA agent fee calculator page.
As you can see, the average commission varies according to each state with South Australia delivering the lowest average commission rate at 2.06% and Tasmania at the higher end with 3.25%. When you look at the difference between these two states, which is a staggering $6,000, it is no wonder that many people find it confusing.
Here is a breakdown of the averages when it comes to the fixed commission fees.
Average Real Estate Agent Fees in Australia
| State |
National Average |
$500,000 |
$1,000,000 |
| NSW (Sydney) |
2.10% |
$10,500 |
$21,000 |
| Victoria (Melbourne) |
2.14% |
$10,700 |
$21,400 |
| Queensland (Brisbane) |
2.45% |
$12,250 |
$24,500 |
| Western Australia (Perth) |
2.44% |
$12,200 |
$24,400 |
| Tasmania (Hobart) |
3.25% |
$16,250 |
$32,500 |
| ACT (Canberra) |
2.17% |
$10,850 |
$21,700 |
| South Australia (Adelaide) |
2.06% |
$10,300 |
$20,600 |
Again remember that this is the state average. You may end up paying more or less than the average commission specified by the local market. The final fee you pay will ultimately depend on your property, the agent, the market, the state average and inflation at the time of sale.
Our comprehensive Australian guide can be used as your starting point for all things fee related and to help you determine your average commission based on your estimated home or unit value.
The only way to increase your knowledge of the market average price is to speak to local real estate agents and determine what services they offer for the price they are asking. Even if you are confident in the ability of the agent, it definitely pays to compare multiple agents. Ask the agent poignant questions such as how many properties they have sold in your area, how long on average it takes them to sell a property, etc. to gauge whether they are truly the best agent for your needs. And of course, make sure you take the time to discuss their fee and commission structure and whether there are any additional costs involved. By asking the right questions, you can understand where your money is being spent. And don’t forget to negotiate.
If you are unsure of any detail, have your solicitor review all contracts prior to signing to ensure that all clauses and fees are reasonable.
All of this information will go a long way in helping you make an informed decision when it comes to selling your home.
If you are considering selling your Australian-based property, make sure use the best real estate agent in your area, rather than just the cheapest. The right agent often pays for themselves many times over.
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