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Real Estate Agent Commission: How Much Should You Agree To Pay?Your Blog Post Title Here...


Real estate agent fees and commission are part and parcel of selling a home but if you’re a first time seller it can be difficult to know if you’re getting a good deal or if you’re paying too much.

So how much do real estate agents charge?

It’s important to know first off:

  1. There are no standard real estate commission rates in Australia, so these can vary from agent to agent.
  1. Commission can also vary from state to state, so the average commission in Sydney can be quite different to the average in Perth.

The first point suggests that it’s in your favour to shop around when it comes to finding a good agent to sell your property. Even a small change in fee percentage can amount to thousands of dollars in your favour.

Real estate agent commission rates are negotiable, so if you think a commission is too high, by all means enter into discussions about this. Sometimes agencies will include a marketing plan for free to offset a higher commission.

Of course, how much the agent gets from the sale isn’t the only reason to choose them, there are lots of other considerations as well. But commission is top priority for most people because it’s a fair chunk of cash you’re handing over.

Commission Structure

While commissions vary and can be negotiated, each agency will have a certain structure for working them out when a house sells.


This is agreed with the vendor before any contracts are signed, and will usually be either a:

Fixed rate fee - where the agent takes a percentage of the total sale price; or

Tiered fee - the agent receives a certain percentage up to an agreed price, then a higher percentage if the price goes over this. 

With a fixed rate you have more certainty around what you will pay no matter what price your house sells for, but this may not motivate an agent to get you the best price. Alternatively, although you may think a tiered fee means you’re paying more money, at the end of the day it can act as an incentive for an agent to get you the best price possible.

Average Real Estate Commissions in Australia

To give you an idea of the average fixed fee commission a $500,000 home selling in different states of Australia would incur, see below:

  • NSW - $10,550 (2.11%)
  • Victoria - $10,650 (2.13%)
  • Queensland - $12,350 (2.47%)
  • ACT - $10,900 (2.18%)
  • South Australia - $10,350 (2.07%)
  • Western Australia - $12,250 (2.45%)
  • Tasmania - $16,300 (3.26%)
  • Northern Territory - $13,400 (2.68%)

As you can see the state average varies markedly. But remember, the final price you end up paying will depend on your property, the agent you use, their commission structure, and additional fees such as marketing, conveyancing, bank charges and more.


Since there are a lot of hidden costs with selling a property it’s important to compare multiple agents, so you end up with more cash in your pocket.

With Bricks + Agent we make this process easier for you. Simply register and anonymously list your property and interested local agents will send you their pitches which you can review at your leisure. It’s an effective way for matching vendors with quality agents with all the information you need at your fingertips.


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Topics: Better Selling

Rafael Niesten

Written by Rafael Niesten

In his early 20s, Perth local Rafael Niesten, won a scholarship to study in Canada, with that came the opportunity to volunteer at a local radio station. That spawned his entrepreneurial streak, returning to Perth in 2001 he set up community radio Groove FM. More by luck than design, they became successful, too successful as they took a significant chunk of the Perth Market. This sent up the red flag with his commercial competitors who saw to it that he came before the Australian Broadcasting Authority and on technicalities such as the number of volunteers he was forced to move on. He received the citizen of the year award for Western Australia (youth) and was a finalist in the Australian of the year awards (Youth). Falling on his sword he turned to running small and large scale events, all the while buying, renovating and selling properties. Buying and selling land and renovated houses provided a grounding in the property industry. He founded a cloud based medical grade voice recognition company, followed by co founding the first true cloud application for private practice in the health sector. He successfully exited these ventures at the end of 2016 and began building Bricks+Agent.

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