Understanding Real Estate Agent Fees and Commissions in NSW (2025 Guide)

In NSW, real estate agent commission is not fixed by law. Instead, it’s negotiated between you and the agent. That means every agent sets their own fees, and it’s up to you as the seller to negotiate. While this gives you flexibility, it also makes it essential to compare agents carefully—both on price and on the service they offer.

What Do NSW Agents Charge in 2025?

  • Sydney metro: usually 1.8% – 2.5% of the sale price

  • Regional NSW: typically 2.5% – 3.5%

  • Overall NSW average: around 2.1%

On a $1 million Sydney property, that’s $18,000 – $25,000 in commission alone—before advertising costs.

➡️ Compare with VIC real estate commission rates

Why the Lowest Fee Isn’t Always Best

A cheaper commission doesn’t always mean you’ll save money.

  • A strong agent may sell faster and for a higher price, easily offsetting a slightly higher commission.

  • Poorly chosen agents can cost far more in lost time, stress, and price reductions.

👉 Tip: Always weigh value delivered, not just the dollar figure quoted

How to Negotiate Your Agent’s Commission

Yes, you can negotiate. And you can do it before or even after signing.

Here are three proven approaches:

  1. Tiered Commission – e.g. 1.5% if within the agent’s price guide, 1.8% if above target. This rewards the agent for achieving a better result.

  2. Flat Fee + Bonus – agree on a fixed fee (say $15,000) plus a performance bonus if the sale exceeds expectations.

  3. Competitive Bidding – interview multiple agents and let them know you’re comparing offers. Most will sharpen their proposal.

Red Flags to Watch Out For

  • Heavy upfront advertising bills (benefits the agent’s exposure more than your sale).

  • Unrealistically high price promises just to win your listing.

  • Sudden “phantom” buyers appearing when your agreement is about to expire.

Tools & Resources

  • Use a commission calculator to estimate fees on your expected sale price.

  • Compare commission averages in your suburb or region before meeting agents.

  • Always get fee structures in writing before you sign.

  • Use a vendor advocate (like iREC) – they can negotiate for you.

 A Roy Morgan research report found that the real estate profession in Australia is consistently ranked among the least trusted professions... it makes sense to use an Vendor Advocate. Robert Williams has over 36 years’ experience advising home sellers. He founded iREC to give sellers insider knowledge of how agents really work — ensuring you don’t overpay or choose the wrong one.

Selling is one of the biggest financial decisions you’ll ever make—make sure you’ve got someone who's independent in your corner.

🗣️ Talk to Your NSW Advocate Today

 

➡️ National guide to real estate fees & commissions

For more information regarding Real Estate Agents, their commission & fees, in your specific suburb in NSW, select your district below....

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