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 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 — The final selling price of the property in AUD
• Commission Rate — The agreed percentage rate between seller and agent

Example: For a $1,000,000 sale at 2.17% commission, the calculation would be $1,000,000 × 0.0217 = $21,700.

3. Typical Commission Rates in NSW

Current Rates: In NSW, commission rates typically range between 1.5% and 3.5% of the sale price, with 2.17% being a common average. Rates may vary based on:

• Property value (higher-value properties often have lower percentage rates)
• Location within NSW
• Agent experience and services provided
• Market conditions

4. Using the Calculator

Instructions: Enter the property sale price in AUD and the agreed commission rate (percentage). The calculator will show the commission amount payable to the agent.

Tip: Remember that commission rates are negotiable. Always discuss and agree on rates before signing an agency agreement.

5. Frequently Asked Questions (FAQ)

Q1: Is GST included in the commission?
A: No, GST of 10% is typically added to the commission amount. The calculator shows the base commission before GST.

Q2: Are there other fees besides commission?
A: Yes, there may be additional marketing and administrative fees. These should be outlined in your agency agreement.

Q3: Can I negotiate the commission rate?
A: Absolutely. Commission rates in NSW are always negotiable between the seller and agent.

Q4: What's the difference between fixed fee and percentage commission?
A: Some agents offer fixed fee services, while most work on percentage commission which varies with the sale price.

Q5: When is the commission paid?
A: Commission is paid at settlement from the sale proceeds, not upfront.