How Much Commission Do Real Estate Agents Charge in Australia?

Quick answer: Real estate agents in Australia typically charge between 1.6% and 3% of the sale price, plus 10% GST. In Victoria, commission usually falls between 1.6% and 2.5%, with an average around 1.9%. On an $800,000 home in Melbourne’s north, that’s roughly $13,000 to $20,000 before GST. Marketing, usually $2,000 to $8,000, is often charged separately.

Commission is one of the first things sellers ask us about, and one of the least clearly explained. So here’s the full picture: what’s normal, what’s included, what’s not, and how to compare quotes properly.

Average Commission by State (2026)

Commission is deregulated in every state, so there’s no official rate. These are typical averages from published 2026 data:

Sources: OpenAgent’s 2026 commission data and Your Property Guide. Rates vary by source and by suburb, so treat these as guides.

Victoria sits at the lower end, mainly because Melbourne is a large, competitive market with high property values. In Epping specifically, OpenAgent records rates ranging from about 1.54% to 2.94%, which shows how wide the spread can be even within one suburb.

What Commission Looks Like in Dollars

Percentages are abstract. Here’s what they mean at typical northern-suburbs prices:

All figures exclude GST. Add 10% to get the amount you’ll actually pay. So a 2% commission is really 2.2% once GST is included.

That GST detail catches people. Two agents might both say “2%”. One means 2% including GST. The other means 2% plus GST. On a $750,000 sale, that’s a $1,500 difference. Always ask.

How Commission Is Structured

Most agents use one of four models.

Flat percentage. The most common. A single rate applied to the final sale price, for example 2% plus GST.

Tiered or incentive commission. A lower base rate up to a target price, then a higher rate on anything above it. For example, 1.8% up to $780,000 and 5% on every dollar above. This lines the agent’s interest up with yours, because the extra effort to get a higher price pays them more.

Fixed fee. A set dollar amount regardless of price, for example $15,000. Less common among full-service agents, but some offer it.

Hybrid. A small fixed fee plus a lower percentage.

Our view: tiered structures can work well, but only if the base target is set honestly. If the “target” is set below what your home would easily achieve, you end up paying the higher rate on money you’d have got anyway.

What Commission Usually Includes (and What It Doesn’t)

Commission typically covers the agent’s time and expertise: appraisal, pricing advice, running open homes, handling buyer enquiries, negotiating offers, managing the contract process and working with your conveyancer through to settlement.

It usually doesn’t include:

In total, selling costs in Victoria usually come to about 2% to 4% of the sale price. For the full paperwork side, see our checklist of documents needed to sell a house in Victoria.

Why Commission Differs Between Suburbs

Even inside Victoria, the rate you’re quoted can move a lot depending on where you live. Three things drive it.

Property value. Agents often accept a lower percentage on expensive homes because the dollar amount is still large. A 1.6% fee on a $2 million Brighton home is $32,000. The same effort on a $650,000 Donnybrook home at 1.6% earns $10,400, so rates in outer suburbs tend to sit a little higher.

Competition. Epping has close to 190 agents active in the suburb, according to OpenAgent. More competition usually means sharper pricing.

Workload. A home that needs styling, trades coordination or a long campaign takes more agent time. Tenanted properties, deceased estates and homes with complex titles often attract a slightly higher rate for that reason.

Is Real Estate Commission Negotiable?

Yes. Commission is deregulated, so every rate is negotiable. But it’s worth thinking about what you’re negotiating for.

Imagine two agents. Agent A charges 1.6%. Agent B charges 2.2%. On an $800,000 sale, Agent B costs $4,800 more. If Agent B’s campaign and negotiation skills get you $25,000 more for the home (entirely realistic in a slow 2026 market with fewer active buyers), you’re more than $20,000 better off with the “expensive” agent.

That doesn’t mean always pick the higher fee. It means compare net results, not headline rates. Ask each agent for their average sale price compared with the first advertised price, and their average days on market. Those numbers tell you more than the commission rate.

Where negotiation does make sense:

• Asking for a tiered structure instead of a flat rate.
• Asking for marketing costs to be itemised, and cutting items you don’t need.
• Asking whether marketing is refunded or reduced if the home doesn’t sell.
• Asking for a lower rate if you’re buying and selling through the same agency.

A Worked Example: Selling a $780,000 Home in Mernda

Here’s what a typical sale might cost a family selling a four-bedroom home in Mernda this spring. These are illustrative figures, not a quote.

Now change one number. If a better campaign lifts the sale price by 3% to $803,400, commission rises by about $515. The seller is still more than $22,800 ahead. That’s why we keep coming back to net results.

And the reverse: if the home is overpriced, sits for 70 days and eventually sells for $750,000, the family has “saved” $660 in commission and lost $30,000 on price. Plus two extra months of mortgage repayments.

Sales Commission vs Property Management Fees

People sometimes mix these up, so a quick note. Sales commission is a one-off fee when you sell. Property management fees are ongoing charges for managing a rental.

In Victoria, property managers commonly charge a management fee of a percentage of the weekly rent (often somewhere in the 5% to 9% range including GST), plus a letting fee when they find a new renter, usually one to two weeks’ rent. Some also charge for lease renewals, VCAT or RDRV attendance and annual statements.

If you own a rental in the north, our guide for Wollert landlords explains what a property manager handles under Victoria’s 2025–26 rental laws, and our rental providers page sets out our management process.

Signs a Low Commission Might Cost You More

A low rate isn’t a warning sign by itself. Plenty of good agents are competitive on price. But be careful if the low rate comes with:

• A marketing budget that’s much smaller than other agents are recommending, which means fewer buyers see your home.
• One open home a week, or opens run by a junior staff member.
• An agent handling a very high number of listings at once.
• Pressure to accept the first offer quickly.
• No track record of sales in your suburb.

An agent who discounts their own fee quickly may also discount your home quickly when a buyer pushes back. Ask how they negotiate, and ask for examples.

When Do You Pay Commission?

Usually at settlement, out of the sale proceeds. Your conveyancer pays the agent from the funds before the balance reaches you. You don’t pay commission if the home doesn’t sell, unless your sales authority says otherwise (read it carefully).

Marketing costs are different. Some agencies ask for them upfront, some at settlement, and some offer “pay later” options. Get the timing in writing.

Five Fee Questions to Ask Every Agent

Take these to each appraisal so you can compare quotes like for like:

1. Is your rate quoted including or excluding GST?
2. What exactly does the marketing budget pay for, item by item?
3. Is marketing payable upfront, at settlement, or only if the home sells?
4. Would you consider a tiered structure, and what base price would you set?
5. Are there any other charges, such as administration, auctioneer or photography fees, that aren’t in the commission?

Write the answers down straight after each meeting. After three appraisals, the numbers blur together quickly.

What Victorian Law Requires

Victoria has clear rules about how agents disclose fees:

• Commission and marketing costs must be set out in the written sales authority before the agent starts work.
• The authority must include the agent’s estimated selling price, and the agent can’t advertise the home at a price below that estimate.
• Agents can’t underquote. The indicative price in the Statement of Information must reflect a genuine estimate. Consumer Affairs Victoria enforces these rules.

If a fee isn’t in the authority, the agent generally can’t charge it.

Commission vs Selling Privately

You can skip commission entirely by selling yourself. Some sellers do it well, especially in hot markets where homes sell themselves.

In 2026, we’d think carefully before trying it. Clearance rates are lower, buyers are negotiating harder, and a private seller has to handle pricing, the Statement of Information rules, inspections, negotiation and contracts alone. A vendor who underprices by 3% to save 2% in commission hasn’t saved anything.

How We Charge at One Group Realty

We quote every seller in writing after we’ve seen the home, with commission, marketing and GST shown separately so there are no surprises. We’re happy to discuss flat and incentive-based structures, and we’ll show you the recent sales behind our price estimate.

If you’d like to see a written proposal, book a free appraisal. And if you’re still choosing between agencies, our guide on how to choose the best real estate agent in Epping lists the questions to ask every agent you meet. You can also read about why sellers choose One Group Realty or check our recent sales.

Frequently Asked Questions

How much commission do real estate agents charge in Australia?

Typically between 1.6% and 3% of the sale price, plus GST. The national average varies by data source, but most metro sales fall between about 1.8% and 2.6%.

What is the average real estate agent commission in Victoria?

Around 1.9%, with a common range of 1.6% to 2.5% plus GST. Rates vary by suburb, property value and agent.

Does real estate commission include GST?

Not always. Some agents quote commission excluding GST, so a “2%” quote may cost 2.2%. Always confirm in writing whether the rate includes GST.

Is real estate commission negotiable in Melbourne?

Yes. Commission is deregulated in Victoria, so rates are negotiable. Compare each agent’s likely net result, not just the headline percentage.

How much does it cost to sell a house in Melbourne?

Total selling costs usually come to around 2% to 4% of the sale price, including commission, marketing, conveyancing and any auction or styling fees.

How much commission would I pay on a $750,000 house in Victoria?

At 2% plus GST, about $16,500. At 1.6% plus GST, about $13,200. At 2.5% plus GST, about $20,625. Marketing is usually extra.

Are marketing costs included in real estate commission?

Usually not. Marketing typically costs $2,000 to $8,000 and is charged separately. Ask for an itemised marketing schedule.

When do you pay the real estate agent’s commission?

Usually at settlement, from the sale proceeds. Marketing may be payable upfront or at settlement depending on your agreement.

Do I pay commission if my house doesn’t sell?

Generally no, unless your sales authority says otherwise. Marketing costs are often still payable, so check the terms before you sign.

What is a tiered commission structure?

A lower base rate up to an agreed price, then a higher rate on any amount above it. It rewards the agent for achieving a better price, as long as the base target is realistic.