Real Estate Commission Calculator
Estimate what selling your home will cost in agent commission and marketing in 2026. Commission rates in Australia are negotiable and vary a lot by state and agency.
Enter the price in thousands. 1200 means $1,200,000.
Vendor paid advertising is charged separately from commission and, on most standard agency agreements, is payable whether or not your property sells. If you withdraw the listing or the campaign fails, you still owe the VPA invoice. Ask specifically what happens to that money if the property does not sell, and get the answer written into the agreement.
Commission is quoted excluding GST far more often than sellers realise. A 2.2 percent rate becomes 2.42 percent once GST is added, which on a $1.2m sale is a difference of about $2,640. Always ask whether the quoted rate is inclusive.
Commission is normally payable on settlement or when the contract becomes unconditional, depending on the agreement. That distinction matters if a buyer's finance falls through, so check which trigger your agreement uses.
💰 Ways to save
- Interview at least three agents and tell each one plainly that you are comparing. Commission is negotiable in every Australian state and the difference between a first quote and a negotiated rate is commonly 0.2 to 0.5 percentage points, which on a $1.2m sale is $2,400 to $6,000. Agents expect the conversation and rarely walk away over it.
- Negotiate the marketing budget as hard as you negotiate the rate, because VPA is real money you pay regardless of outcome. A full premium portal package can run $4,000 to $8,000 in Sydney or Melbourne, and much of that buys placement rather than reach. Ask the agent to show you what the standard listing gets versus the premium upgrade, then decide whether the difference is worth several thousand dollars of your equity.
- Push for a tiered structure only when the base target is set at or below a price you would genuinely be happy with. Structured properly, a lower base rate plus a share of the upside can cost less than a flat rate on a normal result while paying the agent well for an exceptional one. Structured lazily, it is just a higher rate with a story attached.
- Read the agency agreement term and the exclusivity clause before you sign anything. A 90-day exclusive agency locks you in even if the campaign is going nowhere, and some agreements include a continuing period afterwards where the agent still claims commission on buyers they introduced. A 60-day term with a clean exit is a reasonable ask.
or from $138/week over 5 years , indicative finance
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## What real estate commission actually costs in 2026
Pricing reviewed: June 2026.
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Understanding real estate commissions in Australia
What real estate commission actually costs in 2026
The first thing to understand is that agent commission in Australia is negotiable. No state sets or caps a mandatory commission rate, and any agent who tells you their rate is fixed by law or by the industry is wrong. What exists instead is market convention, which varies by location and by how competitive the local agent market is.
As a 2026 guide, metropolitan Sydney and Melbourne commonly sit around 1.6 to 2.5 percent of the sale price, with inner-city and higher-value suburbs at the lower end because the dollar value of the fee is already large. Regional areas across the country, and much of Queensland, South Australia and Western Australia, more commonly sit at 2.5 to 3.5 percent. On a $1.2 million sale that spread is the difference between roughly $19,200 and $42,000, which is why the conversation is worth having.
Flat, tiered and fixed-fee models
Most agreements use a flat percentage of the final sale price. It is simple, predictable and easy to compare between agents. Tiered or bonus structures set a lower base rate up to an agreed target price and then a much higher rate, often 10 to 20 percent, on every dollar above it. The theory is that this motivates the agent to chase the top of the market rather than the quick sale. The practical catch is that the whole structure hinges on where the target sits. If the agent nominates a conservative target, you pay a premium on a perfectly ordinary result.
Fixed-fee agencies charge a set amount regardless of price, commonly $5,000 to $12,000 depending on the service level. These can be excellent value on higher-priced properties where a percentage fee becomes very large in dollar terms, but check carefully what is included, because many fixed-fee models charge marketing and some charge the fee up front whether or not the property sells.
Vendor paid advertising is a separate cost
This is the number that surprises sellers most. Marketing, usually called vendor paid advertising or VPA, is almost always charged separately from commission. It is not a percentage, it is a real invoice, and on standard agency agreements it is payable whether or not your property sells.
A basic campaign with standard portal listings, photography and a signboard runs around $1,500 to $3,000. A typical metropolitan campaign with a premium or highlight listing on realestate.com.au and Domain, professional photography, a floorplan, copywriting and a signboard lands at $4,000 to $8,000. Add video or drone at $800 to $2,000, styling or furniture hire at $2,000 to $6,000 for a six week campaign, and an auctioneer at $500 to $1,200, and a premium Sydney campaign can pass $12,000 before a single offer arrives.
GST, and when the fee is payable
Two mechanical details cost sellers money through simple misunderstanding. The first is GST. Agent commission is a taxable supply, so GST applies. Rates are often quoted excluding it, which means a headline 2.2 percent is really 2.42 percent once GST is added. On a $1.2 million sale that is about $2,640 you did not plan for. Ask every agent whether their quoted rate includes GST and write the answer down.
The second is the payment trigger. Commission may become payable when the contract goes unconditional or at settlement, depending on how the agreement is drafted. Those are different moments with different risk. If a buyer's finance collapses after the contract goes unconditional, an agreement that triggers on unconditional exchange can leave you owing a fee on a sale that did not complete. Ask which trigger applies.
What you are actually buying
It is tempting to treat commission purely as a cost to minimise, but the difference between a good and mediocre campaign on a $1.2 million property is routinely far larger than the difference in fee. Half a percentage point of commission is $6,000. An agent who negotiates a result three percent higher has made you $36,000. The rate matters, but it should be the second question after whether the agent genuinely knows your street, your buyer pool and your price bracket.
The useful test is to ask each agent for their last ten sales in your immediate area, including the initial appraisal price against the final result. An agent who consistently appraises high and sells low is buying your listing rather than pricing your home.
Putting the total together
For a $1.2 million metropolitan sale in 2026, a realistic total is roughly $19,000 to $30,000 in commission plus $4,000 to $8,000 in marketing, so $23,000 to $38,000 all in. On a $700,000 regional sale at 2.8 percent, expect around $19,600 in commission plus $2,000 to $4,000 in marketing. Add conveyancing at $1,000 to $2,500 and, if applicable, a mortgage discharge fee of $200 to $400. Use the estimator above as a starting bracket, then hold three written agency agreements side by side and compare the rate, the marketing schedule and the term as three separate decisions rather than one.
Frequently asked questions
What is the average real estate commission in Australia in 2026?
There is no fixed or regulated rate anywhere in Australia. Metropolitan Sydney and Melbourne typically sit at 1.6 to 2.5 percent, while regional areas and much of Queensland, South Australia and Western Australia commonly run 2.5 to 3.5 percent. On a $1.2 million sale that is a range of roughly $19,200 to $42,000.
Is real estate commission negotiable?
Yes, in every Australian state. No state caps or mandates a commission rate. Sellers who interview three agents and say openly that they are comparing commonly negotiate 0.2 to 0.5 percentage points off the first quote, which is $2,400 to $6,000 on a $1.2 million sale.
Is marketing included in the agent's commission?
Almost never. Vendor paid advertising is invoiced separately and, on most standard agency agreements, is payable whether or not the property sells. A basic campaign is $1,500 to $3,000 and a typical metropolitan campaign with premium portal listings runs $4,000 to $8,000.
Do I pay GST on real estate commission?
Yes. Commission is a taxable supply so GST applies, and rates are frequently quoted excluding it. A quoted 2.2 percent becomes 2.42 percent with GST, about $2,640 extra on a $1.2 million sale. Always confirm whether the rate you are given is inclusive or exclusive.
How does a tiered commission structure work?
The agent takes a lower base rate up to an agreed target price, then a much higher rate, often 10 to 20 percent, on everything above it. It only works in your favour if the target is set at a genuinely realistic price. A conservatively set target means you pay a premium rate on an ordinary result.
When is agent commission payable?
It depends on the agreement. Some trigger on settlement, others when the contract becomes unconditional. That distinction matters if a buyer's finance falls through after an unconditional exchange, so check which trigger your agency agreement uses before you sign.
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