1. What is Real Estate Commission?

Real estate commission is the fee paid to agents for their services in selling a property. In NSW, this is typically a percentage of the final sale price and is negotiable between the seller and agent.

2. How Commission is Calculated

The standard commission calculation is:

Where:

• Sale Price — Final selling price of the property in AUD
• Commission Rate — Agreed percentage rate between seller and agent

Example: For a $800,000 sale at 2.5% commission, the fee would be $800,000 × 0.025 = $20,000

3. NSW Commission Rates

Details: NSW doesn't have fixed commission rates. Typical ranges are:

• 2.0-2.5% for properties under $500,000
• 1.5-2.0% for properties $500,000-$1 million
• 1.0-1.5% for properties over $1 million

Rates may be higher for rural properties or lower for high-value properties.

4. Using the Calculator

Tips: Enter the property sale price in AUD and the agreed commission rate as a percentage. The calculator will show the exact commission amount payable.

5. Frequently Asked Questions (FAQ)

Q1: Is commission negotiable in NSW?
A: Yes, all commission rates are negotiable in NSW. There are no fixed rates by law.

Q2: Does GST apply to real estate commission?
A: Yes, GST of 10% applies to the commission fee in addition to the calculated amount.

Q3: Are there other fees besides commission?
A: Agents may charge additional marketing and administrative fees. These should be outlined in the agency agreement.

Q4: When is commission paid?
A: Commission is typically paid at settlement from the sale proceeds.

Q5: Can I sell without paying commission?
A: Yes, through private sale, but you'll need to handle all aspects of the sale yourself.