1. What is Real Estate Commission?

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

2. How Commission is Calculated

The standard commission calculation formula is:

Where:

• Sale Price — The final selling price of the property in AUD
• Commission Rate — The agreed percentage rate (typically around 2.01% in NSW)

Example: For a $800,000 property at 2.01% commission, the calculation would be $800,000 × 0.0201 = $16,080.

3. NSW Commission Rates

Details: In New South Wales, commission rates are not fixed by law and are negotiable. Typical rates range from 1.8% to 2.5% plus GST, with 2.01% being a common rate for many properties.

4. Using the Calculator

Tips: Enter the expected or actual sale price of your property in AUD, then enter the agreed commission rate percentage. The calculator will instantly show the commission amount payable.

5. Frequently Asked Questions (FAQ)

Q1: Is commission negotiable in NSW?
A: Yes, real estate commissions in NSW are completely negotiable between the seller and the agent.

Q2: Does the commission include GST?
A: Typically, the quoted rate is exclusive of GST. An additional 10% GST will be added to the commission amount.

Q3: Are there fixed-fee alternatives?
A: Some agents offer fixed-fee services, but these are less common than percentage-based commissions.

Q4: When is commission paid?
A: Commission is paid at settlement, deducted from the sale proceeds before the seller receives their funds.

Q5: What's included in the commission?
A: This varies but typically covers marketing, sales services, and the agent's time. Always clarify what's included before signing an agreement.