Real estate agent commissions – how much should you pay?
How much should you pay a real estate agent to sell your home? Here’s the short answer for 2026: most agents charge between 2% and 3% of your final sale price, with the national median around 2.65%. On an $800,000 sale, that’s typically $16,000 to $24,000, before marketing costs are added on top.
The longer answer is more useful, because commission isn’t a fixed price. It’s unregulated, it varies enormously by postcode, and it’s negotiable everywhere in Australia. Which means the amount you should pay depends on knowing what’s normal, what’s included, and what your alternatives are. That’s this guide.
One distinction before we start, because it trips a lot of people up: agent commission is the percentage the agent takes for selling your property. Agent fees (marketing, advertising, photography) are usually charged separately, on top. Keep both in mind whenever you compare quotes.
What’s a typical commission in 2026?
Commissions range from about 1.6% in the most competitive city markets to 4% in some regional areas. The single biggest factor isn’t the agency’s brand, it’s your postcode: where dozens of agents compete for listings, rates get driven down; in towns with two or three agencies, they climb.
That’s why the averages differ so much by state, from around 2.35% in NSW and Victoria up to 3.25% in Tasmania. We’ve broken down real estate agent commission by state, with dollar examples for every state and territory, if you want the number for your market.
Fixed vs tiered commissions
Most agents charge a fixed commission: one percentage multiplied by the sale price. A property that sells for $800,000 at 2.5% costs you $20,000 ($800,000 × 2.5%).
Some agents offer a tiered commission as an incentive: a lower rate up to an agreed target (say 2%) and a much higher rate (up to 6% or more) on every dollar above it. In theory that aligns the agent’s interests with yours. In practice, be careful with where the target is set: a low bar can mean you pay premium rates on money the market would have delivered anyway. If you’re offered a tiered structure, ask to see the total commission in dollars at three or four realistic sale prices before you judge it.
GST, and when you actually pay
Two details sellers often miss. Many agents quote their rate “plus GST”, which adds 10% to the figure you were told, so always confirm in writing whether the quote includes GST. And commission is almost always deducted from your sale proceeds at settlement, not paid upfront: it comes straight out of your final cheque, which is why it’s easy to underestimate how much of your equity it takes.
What if your home doesn’t sell?
Before signing anything, understand what you’d owe if the sale doesn’t happen. Look for a “no sale, no fee” arrangement so you’re not paying commission or costs on a campaign that didn’t deliver, and check the agreement for charges that apply regardless (marketing is often payable either way). Just as important: know your rights if you’re unhappy with the agent’s performance or want to switch. Under some exclusive agency agreements, an agent can still claim commission if you sell privately after the agreement ends, so read the term and the tail period carefully. NSW Fair Trading’s guidance on agency agreements is a good plain-English rundown of what to check before you sign.
How to pay less: negotiate
Commission is not regulated anywhere in Australia. Agents set their own rates, and they expect sellers to negotiate. A short conversation can genuinely save you thousands:
- Get three quotes. It’s the fastest way to learn what’s normal for your suburb, and consumer regulators recommend it.
- Ask for dollars, not percentages. “Show me your commission at $750k, $800k and $850k” makes the real cost concrete.
- Confirm GST and what’s included. Is photography, portal advertising and signage inside the rate, or on top?
- Ask about the agreement type and the exit terms before you sign, not after.
The other costs of selling
Commission is the biggest line on the invoice, but rarely the only one. Budget for legal and conveyancing fees, marketing and advertising, bank and mortgage discharge fees, capital gains tax on investment properties, and any outstanding rates. Our guide to the hidden fees for selling a house covers what each typically costs.
Or skip the percentage entirely
Here’s the question behind the question: on most homes, is the commission worth $20,000 of your equity? For some sellers, a full-service agent earns it. But plenty of people are comfortable being more hands-on, and for them the maths is hard to ignore.
With PropertyNow you sell your own property online for a flat fee, listed on realestate.com.au and Domain, with licensed agents supporting you seven days a week. The price of your home doesn’t change what you pay to sell it. To see the difference on your own numbers, try our commission savings calculator.
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Real Estate Agent Commission by State (2026)
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The bottom line
In 2026, a fair commission is whatever the competitive rate for your postcode is, minus what a short negotiation saves you. Know your state’s average, get three quotes in dollars, confirm GST and the marketing costs, and read the agreement’s exit terms. And before you sign anything, compare the total against a flat-fee sale. It’s your equity; make every percentage point justify itself.
Frequently asked questions
How much commission should I pay a real estate agent in Australia? Most agents charge 2% to 3% of the sale price (2026 national median ~2.65%). What’s “fair” depends on your postcode: competitive city markets run lower, regional areas higher. Get three quotes to find your local benchmark.
Can I negotiate real estate commission? Yes. Commission is unregulated and negotiable in every state and territory. Comparing three agents and asking for the commission in dollars at realistic sale prices are the two most effective levers.
Is a tiered commission a good idea? It can be, if the base target is set at a genuinely ambitious level. Ask to see the total dollar cost at several sale prices before agreeing; a low target means paying premium rates on a result the market would have delivered anyway.
Do I pay commission if my house doesn’t sell? Under a “no sale, no fee” arrangement, no, though marketing costs are often still payable. Check your agency agreement carefully; some exclusive agreements can even entitle the agent to commission on a later private sale.
How do I avoid paying commission at all? Sell privately through an agent-assisted platform for a flat fee instead of a percentage. You handle the sale with professional support behind you, and the fee doesn’t grow with your sale price.
See what commission would cost on your home
Slide your property value into our calculator and see a typical commission next to PropertyNow’s flat fee. It’s usually a five-figure difference.
Related stories: Real estate agent commission by state (2026) · The truth behind agent commissions · The hidden fees for selling a house
By Coreyna Blachut, CTO, PropertyNow
Disclaimer: Commission figures are 2026 market averages provided as a general guide only. Rates are unregulated, vary by suburb, property and agent, and are negotiable. This is general information, not financial advice.