Real estate agent commission is the amount agreed between the Seller and the real estate agent to be paid to the agent when the property is sold. Commission is usually paid at settlement out of the proceeds of a sale.
The commission rate is usually a percentage of the sale price, and is negotiated ahead of time between the Seller and the agent.
Use our commission calculator as a quick guide to the amount of commission payable on the sale of your property.
Real Estate Agent Commission Calculator
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Our agent commission calculator is intended as a guide only.
GST may also apply to agent commission.
Real Estate Agent Commission Types
Agent commissions tend to be either fixed or based on a tiered rate.
Fixed Rate Commission
A fixed rate commission means a fixed percentage of commission will be payable on the sale price.
Tiered Commission
Some real estate agents structure their commission so that a higher amount of commission is payable on any amount earned over an agreed threshold amount. Tiered commission is designed to encourage real estate agents to achieve a higher sale price.
For example, the Seller and agent may agree that commission of 2% will be payable up to $500,000, and 2.5% payable on any amount over $500,000.
How Does Real Estate Agent Commission Work?
Real estate commission is based on a percentage of the purchase price, meaning that you will pay more if there is a higher sale price.
Real estate agent commission is worked out by multiplying the final selling price of the property with the commission rate. For example, if the sale price is $750,000 and the commission rate is 2.5%, the commission payable to the agent would be $18,750 (750,000 x 2.5%).
Real estate commission is unregulated in Australia, so commission percentages are set by individual agents and can be negotiated between the Seller and the agent.
When To Pay Real Estate Agent Commission
Agent commission is usually paid at settlement. If the deposit paid by the buyer has been held by the real estate agent during the contract period, they will usually deduct their commission and any other agent fees payable from this amount before applying any remaining funds to the proceeds.
Other Costs Of Selling A House
The last thing you need when selling your home is unforeseen costs. Some additional costs to consider are mortgage discharge fees, moving costs, other costs involved in getting your house ready for sale, and conveyancing fees.
Other Real Estate Agent Fees
Please note that the above calculator is a guide only, and based on a flat or fixed percentage of commission.
You will also need to include advertising and marketing expenses and GST to the above amount.
There can be a lot of variability in agent fees and the particulars of agreements, so make sure you read the contract carefully before signing and seek legal advice if you are unsure.
More Questions?
If you have questions about agent commissions or any other aspect of buying or selling residential property, our expert solicitors are available to answer them.
Contact us on 1300 539 529, through our contact form, or for an obligation free quote, head over to our quote page.
The above is not legal advice and is general information only. Our agent commission calculator is intended as a guide only – for particulars of your agent commission structure please refer to your agreement.
