Real Estate Agent Fees in Victoria

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How do commissions work when selling your house?

A quick introduction to real estate agent fees in Victoria

Situated in Australia's southeast corner, Victoria is Australia's most densely populated state and the second most populous state behind NSW.

Unsurprisingly, this means Melbourne real estate has seen considerable growth in the last few years. Victoria is amid a massive population surge, and in the last seven years, the growth rate has surged to eclipse Australia's average growth rate.

LocalAgentFinder research indicates that in Victoria, properties with high development potential have been creating buyer interest. Period-style homes and properties with high land value also rank on the list of prospective buyers' top priorities.

If you're thinking of selling in Victoria, it's good news for you, as Victoria is home to some of Australia's lowest real estate agent commission rates.

Understanding how much selling your property will cost you is made easier with LocalAgentFinder’s leading online comparison service that provides you access to agent commission rates, marketing fees, unique selling strategies and more.

How do real estate fees and commissions work in Victoria?

Like all states, Victoria operates on a deregulated fee structure. This means that real estate agents control their own commission and fee rates. They aren't lawfully required to charge a certain amount but are instead guided by a few key factors, such as supply and demand.

Supply and demand

Market demands and competition heavily dictate what Victorian real estate agents charge. For example, real estate agents in regional areas charge fees that are higher than agents in metropolitan Melbourne. This is because there's less competition between agents, so they can set higher rates to compensate for lower selling prices and decreased market competition.

In contrast, prices generally increase closer to city areas. The average real estate agent can afford to charge a lower commission rate on properties with high price tags, as they'll still take home a large commission. It's also in their best interest to offer competitive rates because there are many more agents competing for business in high-density areas like Melbourne.

Another important consideration when you compare agents is to understand exactly what's included in the price you‘ll pay for commission and fees. We often bundle the two terms together as one general cost without really considering the different allocations made under each term.

Know the difference between agent commission and fees

In general, the commission rate is the actual percentage allocation your agent will receive of your property's final sale price. Fees are additional costs and can include marketing costs and miscellaneous administrative costs.

It makes sense to speak to your agent to define the charges that sit under each term before closing the deal. Look for an agent who creates a positive working relationship and a comfortable environment that will allow for frank discussion and an open negotiation around commissions and fees.

Related: How to Choose a Real Estate Agent

What's the average commission rate in Victoria?

LocalAgentFinder research indicates that Victoria has some of Australia's lowest real estate agent fees, with the overall average commission sitting at 2.00%. The lower average rates are a reflection of the higher level of competition amongst real estate agents who practise in a state with a strong property market. The below information shows how Victoria compares to the rest of the country.

State Ave. Fee
ACT 2.17%
NSW 2.01%
NT 2.49%
QLD 2.56%
SA 1.94%
TAS 2.71%
VIC 2.00%
WA 2.32%
From LocalAgentFinder Data Researched September 2022

How does the average commission in Victoria compare to the rest of Australia?

In comparison to other states, Victoria's average commission rate sits above South Australia and is equal to NSW, but is lower than all other Australian states and territories. The rate is comparable to the average commission rate in New South Wales, where competition between agents is also high in Sydney.

The volume of people wanting to relocate to Victoria's capital city drives real estate competition down even further in Melbourne, with the average agent commission rate sitting lower again at 1.93%.

This is great news for Victorians living in city areas, but it's worth remembering that while the average fee is usually lower in metro areas, it can still be slightly higher in rural areas. As mentioned, the difference between rural and city real estate commissions and fees is due to several factors, but mainly supply and demand.

We can see this in the table below.

City Ave. Commission Rate Lowest Rate Highest Rate
Melbourne 1.93% 1.00% 3.30%
Geelong 2.00% 1.20% 2.75%
Regional 2.17% 1.00% 4.00%
From LocalAgentFinder Data Researched September 2022

*Average commission rates across New South Wales based on a property sale of 500k

Agent fees and commissions vary between metro and regional areas. Factors such as average sale prices impact this. Finding out what this means for you is made easy with LocalAgentFinder’s leading online comparison service offering local agent information for sales performance, average sales price, fees and agent commission and more.

Negotiating fees and commissions in Victoria

If you're selling your property in Victoria, you're probably keen to learn how to negotiate fees and commissions. As discussed, the location of your property will likely dictate the cost of fees and commissions. But before stepping into a negotiation, it's worthwhile knowing your state's average real estate commissions and the two main commission structures available.

The fixed-rate approach

If you agree to pay a fixed rate or flat fee commission, this means you'll pay a specific amount after your property sells. As the rate is fixed, the final selling price has no bearing on how much you pay. You'll pay the same amount no matter the property price. This gives homeowners peace of mind and certainty regarding the commission fee. However, the potential disadvantage of this commission structure is the fear the agent will get your property sold too quickly, even if they don't secure the highest possible property price.

The tiered percentage approach

The tiered percentage option works on a sliding scale and encourages agents to secure a higher sale price. For example, you may agree to a 2% commission rate if the sale price is $480,000 or less and a further amount if the property sells for a higher price. So, if the sale price is $500,000 you'll pay 2% on the first $480,000 (being $9,600) and, for example, 10% on the additional $20,000 (being $2000). The total commission payable would be $11,600.

How do you negotiate fees with real estate agents?

Victoria's highly competitive property market is why commission and fee rates are below the national average. This means you're in a good place to negotiate, but it's important to gather every piece of information beforehand to help ease the process.

First, do your research via LocalAgentFinder and create a shortlist of two to three local agents. Then follow these tips to negotiate and choose the right agent to sell your property:

  • Ask the real estate agents about both their commission rates and their preferred commission structure. If this is different to your preferred structure, ask if they're happy to use your preference instead. You also shouldn't hesitate to mention that they're competing with other agents. If they're keen to sell your property and know there's competition, they might be more willing to price match a competitor.
  • Confirm whether there are additional fees you need to pay so you can effectively compare agents.
  • Remember you're in a better position to negotiate a lower rate if your property value is higher than average.
  • Don't leave without getting the real estate agent's fees and commission rate in writing.

Should I choose a cheap real estate agent?

It's always tempting to choose the agent with the lowest commission rate. However, we recommend comparing real estate agent commission rates and the services included as well as their sales history so you can understand why they're charging that particular rate.

Using LocalAgentFinder's real estate agent comparison service, you can compare real estate agent commission rates as well as their sales history, marketing fees, independent homeowner reviews and more. A high agent commission rate may put you off initially, but the reality is that a good agent can add tens of thousands of dollars in value to your property.

Knowing the agent’s fees, commissions and performance in your suburb before you meet them puts you in a great position to negotiate. LocalAgentFinder’s leading online comparison platform, selling guide and agent questionnaires gives you access to this information and much more.

Top tips for selling your house in Victoria

We know that Victoria has some of Australia's lowest average commission fees and these are particularly low in Melbourne. With this in mind, it should be easy to find a real estate agent who charges reasonable fees in Victoria. But here are some further tips to help you when selling property:

  1. Ensure your real estate agent has a sound marketing plan. It's a good idea to have an open conversation with your agent about their proposed marketing plan.
  2. Commission rates are important but not everything. Don't be drawn to cheaper commission rates as a stand-alone factor, as they should be considered alongside the agent's sales history, local knowledge and marketing plan.
  3. To gather this information and do an agent background check, visit LocalAgentFinder. You can learn everything from their fees to their work history and their local market experience. This relevant and useful information can help inform your decision.

LocalAgentFinder's free comparison service

Finding a good real estate agent isn't always easy and that's why LocalAgentFinder is here to help.

We're aware that hidden fees are always a concern when selling your house and the good news is that LocalAgentFinder is completely free for homeowners. Instead, your chosen agent pays LocalAgentFinder a referral fee after successfully selling your property.

In addition, the comparison service allows you to make your agent shortlist as long or as short as you like until you decide to contact an agent. The agents you don't connect with will never know and will never attempt to follow up, which saves you time and resources.

So, if you'd like to compare many agents simultaneously, take a look at LocalAgentFinder today and see if we can help. We also have a fully operational Australian-based call centre, so if you have any questions, call us on 133 033.


What are the average real estate marketing fees in Victoria?

Now, while some Victorian real estate agents include advertising and marketing fees within their commission, most agents charge it as an additional cost. So you know what to expect, request a breakdown of these marketing costs from your agent beforehand.

However, remember that marketing and advertising costs vary widely, depending on the campaign and your property's location. In Victoria, expect to pay 0.5% to 1% of your property price on advertising and marketing costs. In Melbourne and inner city areas, marketing fees tend to be more expensive compared to regional areas such as Geelong, Bendigo and Ballarat.

What’s included in marketing costs?

Experienced real estate agents will create a print and digital marketing campaign that expertly targets your key buyer demographic. The more potential buyers that know your property is for sale, the likelihood you'll sell for the highest price possible. The advertising and marketing fees you pay should include:

  1. Online advertising is the most valuable marketing channel in real estate. You'd expect a property listing (with floor plans and compelling copy) on real estate websites like and The copywriting should be compelling and entice people to view your property.
  2. A property listing in local print publications such as newspapers and magazines.
  3. Open house signs and a for sale sign.
  4. Professional photography and videography.
  5. Flyer and brochure creation for open house inspections.
  6. Social media amplification.

How much are auctioneer fees?

Similar to advertising costs, most real estate agents will charge auctioneer fees on top of the commission amount. This is the service fee for registered auctioneers on auction day. Ask your agent for recommendations on an auctioneer who will use their skills to get you the highest selling price possible. In SA, the average auctioneer fee is currently $400.

What are home staging fees?

Home staging services include preparing your home for inspections, a professional photo shoot and auction day. It may involve simple styling tips or furnishing the entire property for the selling campaign's duration.

A good agent can either give you home staging advice themselves, generally as part of their commission, or connect you with local professional home stagers.

Home staging costs range from $2000 to $8000 depending on the level of service, property size and the campaign's duration. We recommend getting tips from your real estate agent as a first step and hiring a professional based on their recommendation.

What other potential real estate fees should you be aware of?

Here are some other fees to consider when selling your property:

  1. Conveyancing fees. Yes, you need to hire a solicitor when buying and selling a property. The South Australian conveyancing process is quite complicated, with over 10 steps and the average conveyancing fee in SA is $800.
  2. Mortgage discharge fee. If a mortgage remains when you sell your property, your bank will charge a fee for the paperwork involved in discharging the mortgage. Fees vary depending on the bank or home loan lender, but it's typically around $1000.
  3. Moving fees. It's best to budget about $800 for relocating your furniture and worldly possessions, but this depends on the amount of furniture and where it's moving to.
  4. Capital gains tax (applicable in some situations).

Real Estate Agent Fees & Commissions by State

To determine average commission rates, LocalAgentFinder took the average commission of all active agents respectively September 2022. This included agents with tiered and fixed commission structures based on a $500,000 selling price. This page was updated on 20 October 2022.