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 negotiated between the seller and the agent.

2. How Commission is Calculated

The standard commission calculation formula is:

Where:

• \( Sale\ Price \) — Final selling price of the property in AUD
• \( Commission\ Rate \) — Agreed percentage rate (typically 2-2.5%)

Example: For a $500,000 property at 2.5% commission: $500,000 × 0.025 = $12,500 commission

3. Typical Commission Rates in Australia

Details: Commission rates vary but generally range from 1.5% to 3.5% depending on:

• Property value (higher value often has lower percentage)
• Location (capital cities vs regional areas)
• Agent's experience and services included
• Market conditions

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 Australia?
A: Yes, commission rates are always negotiable between the seller and the agent.

Q2: Are there additional fees besides commission?
A: Often yes - marketing costs, administrative fees, and GST may apply on top of commission.

Q3: What's the average commission in major cities?
A: Sydney/Melbourne average ~2-2.5%, while Brisbane/Adelaide average ~2.5-3%.

Q4: Do buyers pay commission in Australia?
A: No, the seller pays the commission from the sale proceeds.

Q5: Are tiered commission rates common?
A: Some agents offer sliding scales (e.g., 2% on first $500k, 1.5% on remainder).