The New South Wales market is deregulated, meaning there is no standard practice when it comes to allocating commission and fee rates. There are also no legal regulations that specify what real estate agents can charge when selling property. More often than not, these fees are driven by several key factors, including:
The type of property and property values
If you're selling an unusual property or an expensive property that will only appeal to a small selection of buyers, the agent will have their work cut out for them. Therefore, their commission is higher due to the extra time and effort involved.
As you will see below, the average NSW real estate commission rate differs substantially between rural and city real estate agents. This is due to the supply and demand of agents. A populated area like Sydney has more agents, which means greater competition and, therefore, generally lower rates. Meanwhile, rural areas have fewer agents, which equals less competition and higher commissions.
The real estate agent's experience
A newer real estate agent may have a lower commission rate compared to an experienced agent. Do your research via LocalAgentFinder to find a quality agent with recent sales similar to your property who knows the local market and offers a reasonable commission.
The bar chart below highlights how the NSW average commission rate compares to the rest of the country.