Real Estate Fees & Commissions Explained (Australia 2025)

Real Estate Fees Commissions

When you sell a property in Australia, one of the biggest costs to consider is the real estate agent’s commission. This fee is usually charged as a percentage of your final sale price and covers the agent’s service in marketing, negotiating, and closing the deal. Importantly, there are no fixed or standard real estate commission rates in Australia—they are fully negotiable and can vary widely. Factors such as location, property type, and even competition between local agents all play a role. On average, commissions tend to be lower in capital cities and higher in regional areas, but every state has its own typical range.

Want to know what’s fair in your area? Compare real estate commission rates by state below, or see our guide on how to negotiate agent fees below before you sign a selling agreement.

💲How Much Do Real Estate Agents Charge in Australia?

Real estate agent commission rates in Australia usually range between 1.6% and 3.5% of the final sale price, depending on the location, property type, and level of competition in the market. This means that on a $700,000 home, agent fees could sit anywhere from around $11,200 to $24,500.

Importantly, commissions are fully negotiable. All agents bundle their fees to cover essential services such as:

  • Sales strategy and advice (pricing, timing, buyer targeting)

  • Negotiation and communication (managing open homes, handling buyer enquiries, securing offers)

These services are typically included in the quoted percentage fee, the majority of agents charge extra for marketing packages.

👉 Want to see how commission rates vary in your area? ⤵️

💸 How Much Do Real Estate Agents In Your Area?

Typical Real Estate Fees by State (as at 8 September 2025)

State/Territory Real Estate Commission Range Average Fee (%) Key Notes
NSW 1.8% – 2.8% ~2.3% Real estate agent commission in NSW is negotiable, varies metro vs regional.
VIC 1.6% – 2.9% ~2.2% Average VIC agent fees with Strong competition in Melbourne
QLD 2.0% – 3.0% ~2.5% QLD real estate commission ranges in regional markets
WA 2.0% – 2.8% ~2.45% Real estate agent commission in WA is often capped for lower-value homes
SA 2.0% – 2.7% ~2.3% Average SA agent fees tends to be lower than QLD/WA
TAS 2.0% – 3.5% ~2.8% Real estate agent commission in TAS- Highest average in Australia
ACT 2.0% – 2.5% ~2.2% Average ACT agent fees generally consistent
NT 2.5% – 3.5% ~3.0% NT real estate commission ranges higher due to smaller market

Figures are averages. Actual fees vary depending on location, property value, and your negotiation skills.

🫰 Why the Cheapest Agent Can Cost You More

When comparing real estate agent fees, it’s tempting to choose the lowest commission rate. But cheaper isn’t always better. In fact, the “cheapest” agent can sometimes end up costing you more in the long run.

A skilled agent who charges a slightly higher commission may achieve a better marketing strategy, attract more buyers, and negotiate a stronger final sale price.

Example:

  • Agent A charges 1.5% commission and sells your property for $800,000.

    • You pay $12,000 in commission.

  • Agent B charges 2.5% commission but negotiates a sale at $850,000.

    • You pay $21,250 in commission.

  • Result: Even with higher fees, Agent B leaves you $16,750 better off.

💡 That’s why it’s important to weigh value over cost. A higher-performing agent can more than cover their commission through a stronger sales outcome.

💵 Negotiating Real Estate Agent Fees

When it comes to selling your home, it’s important to remember that real estate agent fees are fully negotiable. While most agents will quote a commission percentage, what matters is the value and services included, not just the number.

Here are some smart tips for negotiating agent commissions:

  • Ask what’s included – Does the fee cover marketing, professional photography, staging advice, and advertising?

  • Compare results, not just percentages – A skilled agent who charges slightly more but achieves a higher sale price often leaves you better off.

  • Request a performance-based structure – Some agents may agree to a tiered commission where they earn more only if the sale price exceeds a target.

  • Seek independent advice – If you’re unsure, get a second opinion from an independent source a comparison service for transparency.

📌 Don’t just ask for a discount — negotiate smarter.

For a deeper guide, see our article: How to Negotiate Real Estate Agent Fees

📌 Independent Advice on Real Estate Commissions

When it comes to negotiating real estate agent commissions, many sellers feel pressured to accept the first rate an agent suggests. That’s where iREC acts as an independent consultant—helping you understand what’s fair in your market and ensuring you don’t overpay.

As a vendor advocate, iREC’s only role is to protect sellers. We don’t represent agents or take commissions from them. Instead, we provide unbiased advice so you can compare fees, evaluate agent performance, and make an informed decision before signing a contract.

👉 Get independent advice on agent fees before you sign – and avoid costly mistakes.

Compare Agent Fees Across Australia Before You Sell

Real estate commission rates vary widely depending on the state, regional area, and even the individual agent. In 2025, commissions can range from as low as 1.6% in metropolitan areas to over 3% in some regional markets. These differences add up quickly, especially when you’re selling a property worth hundreds of thousands (or millions) of dollars.

Before choosing an agent, it’s essential to research and compare commission structures. The cheapest rate isn’t always the best value—what matters is the balance of fees, service, and results achieved.

➡️ Get independent advice and compare what agents charge in your state before you commit.

Your Independent Advocate

Robert Williams A Roy Morgan research report found that the real estate profession in Australia is consistently ranked among the least trusted professions, often placing third or lower in surveys of ethics and honesty. This low trust is often attributed to a lack of transparency in real estate transactions and historical issues within the industry, leading to public perception challenges even as the industry evolves with new technologies and regulations and this is why an independent advocate matters. 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.

👉 About Rob Williams

 

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