1. What is Real Estate Commission?

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

2. How Commission is Calculated

The standard commission formula is:

Where:

• Sale Price — The final selling price of the property in AUD
• Commission Rate — The agreed percentage rate (typically between 1.5% to 3.5%)

Example: For a $800,000 sale at 2.5% commission: $800,000 × 0.025 = $20,000 commission.

3. Typical Commission Rates in Australia

Details: Commission rates vary by state, property value, and agent:

• NSW: Typically 1.5% - 2.5%
• VIC: Usually 2% - 3%
• QLD: Often 2.5% - 3.5%
• Higher-value properties may negotiate lower percentage rates

4. Using This Calculator

Tips:

• Enter the expected or actual sale price of your property
• Input your agreed commission rate (default is 2.5%)
• Remember commission is always negotiable
• Consider GST which may be added to the commission

5. Frequently Asked Questions (FAQ)

Q1: Is commission the only fee I'll pay?
A: No, there may also be marketing costs, administrative fees, and GST on the commission.

Q2: Can I negotiate the commission rate?
A: Yes, commission rates are always negotiable in Australia.

Q3: Are there fixed-fee alternatives?
A: Some agents offer flat-fee services, but these may provide less service.

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

Q5: Do buyers pay commission?
A: No, the seller pays all commission fees in Australia.