When you sell a property in Australia, the real estate agent’s commission is usually the single biggest cost of the sale, and it typically runs from about 1.5% to 3% of the final sale price (last checked June 2026). On an $800,000 sale at 2%, that works out to roughly $16,000, which is a sum worth understanding before you sign anything.
The exact figure depends on where you are selling, what your home is worth, and how well you negotiate. There is no national fixed rate, no government-set schedule, and no law forcing you to accept the first number an agent quotes. Commission is genuinely negotiable, and the rate one agent offers can differ meaningfully from the agent down the road.
What a real estate agent’s commission actually is
A real estate agent’s commission is the fee you pay the agent for selling your property. It is almost always charged as a percentage of the sale price, and you generally pay it only when the property sells and settles. No sale, no commission, in most standard arrangements.
That percentage covers the agent’s work: pricing advice, listing the property, running open homes and private inspections, fielding buyer enquiries, negotiating offers, and steering the deal through to settlement. It does not usually cover the cost of advertising your property, which is a separate line item we will get to shortly.
How much commission varies by state and market
Here is the part that surprises a lot of sellers. Commission rates are not uniform across the country, and the gap is driven largely by competition. Where there are many agents chasing the same listings, rates tend to be lower. Where the market is thinner, rates tend to be higher.
As a broad pattern, commission tends to be lower in competitive metropolitan markets. Parts of Sydney and Melbourne can sit around 1.5% to 2.2%, because agents there compete hard for listings and a small percentage of a high sale price still adds up to a healthy fee. In regional and rural areas, the rate is often higher, sometimes 2.5% to 3.5% or more, where there are fewer agents and lower sale prices to spread the cost across.
The figures below are indicative ranges only, not quotes. Treat them as a rough guide to set your expectations, then compare actual agents in your own suburb.
| State or market type | Indicative commission range |
|---|---|
| Competitive metro (parts of Sydney, Melbourne) | ~1.5% to 2.2% |
| New South Wales (broad average) | ~2.0% to 2.5% |
| Victoria (broad average) | ~1.8% to 2.5% |
| Queensland | ~2.5% to 3.0% |
| South Australia | ~2.0% to 2.75% |
| Western Australia | ~2.0% to 3.0% |
| Tasmania, regional and rural | ~2.5% to 3.5%+ |
Figures are indicative and hedged, last checked June 2026. Actual rates move with local competition, property value, and individual negotiation, so your number may sit outside these bands.
The fee structures you might be offered
Not every agent charges the same way. There are three common structures, and the one you are offered can matter as much as the headline rate.
Flat percentage
The simplest and most common. The agent charges one fixed percentage of whatever the property sells for. Sell at $750,000 on a 2% rate and you pay $15,000. It is easy to understand and easy to compare between agents, which is its main appeal.
Tiered or incentive-based rate
Here the agent charges a base rate up to an agreed target price, then a higher rate on anything above that target. The idea is to reward the agent for pushing past your expectations rather than just clearing the listing. For example, a lower percentage up to $700,000 and a noticeably higher percentage on the portion above it. Done well, this aligns the agent’s interests with yours. Just make sure you model what it costs at a few different sale prices, because the maths can run away from you at the top end.
Fixed fee
Less common, but it exists. The agent charges a set dollar amount regardless of the sale price. This can suit higher-value properties where a standard percentage would produce an eye-watering fee, though it removes the agent’s incentive to chase every last dollar. Read the fine print on what the fixed fee includes.
Compare agents on both the rate and the track record. The cheapest commission is not a saving if it comes with a weaker sale price.
Marketing and advertising costs are separate
This is the cost that catches sellers off guard. The commission pays the agent for selling. It does not usually pay for the campaign that puts your property in front of buyers.
Marketing and advertising are typically billed on top, and they can range from about $1,000 for a modest campaign to $10,000 or more for a full premium push in a competitive area. That budget covers things like professional photography, floor plans, portal listings on the major property sites, signboards, and sometimes print or social advertising.
Some agents ask for this upfront, some fold it into the settlement, and some offer to wear part of it. Always ask for the marketing cost in writing as a separate figure, and ask what you actually get for it. A bigger budget is not automatically a better result, but skimping on photography to save a few hundred dollars can cost you far more in buyer interest.
Commission is negotiable, so negotiate
The single most useful thing to know is that the rate is not fixed. Agents expect to discuss it. A rate quoted at 2.5% is an opening position, not a final price, and there is nothing rude about asking whether there is room to move.
That said, the lowest number is not automatically the best deal. An agent who shaves their commission to win your business may also be quicker to push you toward accepting a lower offer, because their incentive to hold out for top dollar is thinner. What matters is the combination of a fair rate and a genuine track record of selling homes like yours, in your area, for strong prices.
A sensible approach looks like this:
- Speak to at least three local agents and get each rate in writing.
- Ask each for recent comparable sales they have handled nearby.
- Confirm exactly what the commission covers and what is billed separately.
- Weigh the rate against the evidence, not just the rate on its own.
It pays to compare agent commissions in your area before you commit, so your negotiation starts from real local numbers rather than a guess.
Where commission fits in the bigger picture
Commission is the headline selling cost, but it is not the only one. If you are mapping out the full process, our guide to selling a house walks through the other costs and steps from listing to settlement.
And if you are moving on to a new place at the same time, it is worth understanding the buying side too. Our guide to buying property in Australia covers what you will face as a purchaser, including the costs that sit on that side of the ledger.
This article is general information only and does not take account of your personal circumstances. Figures are indicative ranges, hedged and last checked June 2026, and commissions vary by state, agent, and market. Consider getting tailored advice before making a decision.
The bottom line
A real estate agent’s commission in Australia usually sits somewhere around 1.5% to 3% of the sale price, lower in competitive city markets and higher in regional areas, with $16,000 on an $800,000 sale being a fair mid-range illustration. The rate, the fee structure, and the separate marketing budget are all worth scrutinising, and all three are open to discussion. Compare a few local agents on both their rate and their results, get every number in writing, and remember that the cheapest commission is only a bargain if the sale price holds up.