Real estate agent commission rates in 2026, state by state.

Real estate agent commission is, for most Australian homeowners, the single largest cost of selling a property. It’s also one of the least transparent. Agents quote percentages. Most sellers don’t translate those into actual dollar amounts until they’re looking at their settlement statement.

This guide gives you the unvarnished numbers, explains what commission actually pays for, and lays out every legitimate option for reducing or eliminating it.

What is real estate agent commission?

Commission is a percentage of your property’s final sale price paid to your selling agent upon settlement. In Australia, it’s paid by the vendor (seller), not the buyer. It is typically the agent’s primary income from your transaction.

Commission is negotiable. There is no fixed or regulated rate in any Australian state. Despite this, most agents quote rates within a narrow band because that band has become industry convention.

Commission does not include marketing fees. In most cases, your agent will also charge a separate marketing budget (typically $2,000 to $6,000) for REA listing upgrades, print advertising, photography, and signage. This is on top of commission and is usually payable regardless of whether the property sells.

Average commission rates by state (2026)

State	Typical range	Metro average	$950k cost	$1.3M cost	Your numbers
Victoria	1.6% to 2.5%	~2.35%	$22,325	$30,550	VIC calculator
New South Wales	1.8% to 2.5%	~2.35%	$22,325	$30,550	NSW calculator
Queensland	2.5% to 3.5%	~2.8%	$26,600	$36,400	QLD calculator
Western Australia	2.5% to 3.0%	~2.75%	$26,125	$35,750	WA calculator
South Australia	1.5% to 3.0%	~2.8%	$26,600	$36,400	SA calculator
Tasmania	2.0% to 3.5%	~3.25%	$30,875	$42,250	TAS calculator
ACT	2.0% to 2.5%	~2.23%	$21,185	$28,990	ACT calculator
Northern Territory	Varies by agency	~3.0%	$28,500	$39,000	NT calculator

Before GST. No agency publishes a fixed rate, so these are typical rates, and the ones our state calculators use. Add $3,000 to $6,000 for typical marketing budgets, and the true cost of selling in metro Melbourne or Sydney frequently exceeds $30,000. Median house values: Cotality Hedonic Home Value Index, capital cities, April 2026. Typical commission rates: 2025-26 industry surveys. Method and full table: Unreserved Commission Report 2026.

What 2.1% commission costs in dollars

Unreserved uses 2.1% in its examples, the conservative end of the 1.8% to 3.5% range agents charge. Here is what that means on common sale prices, and what a flat fee keeps in your pocket instead.

Sale price	Agent at 2.1%	With GST	Unreserved Lite ($900) saves	Unreserved Plus ($6,900) saves
$800,000	$16,800	$18,480	$15,900	$9,900
$1,000,000	$21,000	$23,100	$20,100	$14,100
$1,200,000	$25,200	$27,720	$24,300	$18,300
$1,500,000	$31,500	$34,650	$30,600	$24,600

Savings compare the agent’s commission before GST with the Unreserved fee. Marketing is extra in both cases.

How much does a real estate agent make?

The commission doesn’t all go to the person who sells your home. The agency takes a share for rent, admin and the principal’s margin, and the selling agent gets the rest. That is why agents push for volume: a fast sale at a lower price costs the agent little and costs you a lot.

Selling for $50,000 less changes the agent’s 2.1% by $1,050. It changes your result by $50,000.

What else agents charge on top

• Marketing: often $3,000 to $6,000 or more, paid by you whether the home sells or not.
• GST: 10% on the commission.
• Admin and auction fees: often listed separately in the agency agreement.
• Withdrawal fees: some agreements charge if you pull out early. Read the termination clause.

The hidden cost: over-appraisal and price reductions

One of the most consistent patterns in Australian real estate is vendor conditioning: the practice of initially appraising a property at an optimistic price to win the listing, then gradually reducing the price as the market fails to respond.

The consequences: extended days on market (which signals to buyers that something is wrong), price reductions that erode your negotiating position, and ultimately a sale price often below what an accurately-priced campaign would have achieved. An independent AI valuation, with no incentive to flatter you or close a quick sale, eliminates this dynamic.

Can you negotiate commission in Australia?

Yes. Commission rates are negotiable, and it’s worth knowing this before you sign an agency agreement.

• In a hot market, agents have less leverage. Use this to negotiate.
• Tiered structures (e.g. 1.5% up to $900k and 5% on every dollar above) can align incentives.
• Get at least three appraisals. Comparison puts you in a stronger position.
• Never accept the first rate quoted. Even reducing from 2.5% to 2.0% on a $950k property saves $4,750.

The limit: even at a negotiated rate, you’re paying $15,000 to $20,000 for a service that, at its core, involves listing on two websites and conducting open homes. The question isn’t whether you can negotiate. It’s whether paying any commission is the right choice.

Most marketing fees go towards REA listing upgrades you can access independently for a fraction of the cost.

Three alternatives to paying full commission

1. Negotiate a lower commission

Expected saving: $4,000 to $8,000 on a typical Melbourne or Sydney property. Still leaves you paying $15,000+ for services accessible more cheaply elsewhere.

2. FSBO platforms (BuyMyPlace, PropertyNow, others)

Flat fee $600 to $950 for portal access. Expected saving: $18,000 to $28,000 vs traditional agent. Catch: you get the listing but none of the intelligence. No AI pricing, no competitive bid mechanic.

3. Unreserved: flat fee, AI-powered, no commission

Flat fee platform with AI valuation, Bid-Smart reverse auction, and pre-sale advisor. Expected saving: $20,000 to $28,000 versus a traditional agent, with materially better pricing intelligence than a standard FSBO platform.

When a flat fee is the better deal

A flat fee wins when your home is in a market with active buyers and you’re comfortable showing it, or having someone show it for you. Unreserved Lite is $900: you run the sale with AI tools that answer buyers 24/7, listed on realestate.com.au, Domain and three more portals. Unreserved Plus is $6,900 ($2,000 up front, $4,900 on sale): a dedicated campaign manager runs the sale for you. No commission and no lock-in contracts on either. Get a free valuation to see what you’d keep.

Commission rates: common questions

What is the average real estate commission in Australia?

Between 1.8% and 3.5% of the sale price plus GST. Unreserved uses 2.1% in its examples, the conservative end of that range.

Which state has the highest commission?

Tasmania and the Northern Territory, at around 3% or more.

Is commission charged on the full sale price?

Yes, unless your agreement sets a tiered rate or a cap.

Do I pay commission if my house doesn’t sell?

Usually not, but marketing costs are still payable.

Is there a way to sell without paying commission?

Yes. A flat-fee service charges a fixed amount whatever the price. Unreserved starts from $900.

The real question: commission saving vs total outcome

Most of the conversation about commission focuses on cost. The more important question is total outcome.

Consider: sell via standard FSBO, save about $19,000 in commission at 2.1%, but accept the first $910,000 offer because there’s no competitive bid mechanic. Versus: use Unreserved, pay a flat fee, Bid-Smart creates competition between three buyers, sale settles at $945,000. The commission saving in the first scenario is real. The outcome in the second is better by $13,000+ even after fees. Different products, different goals.