Real Estate Agent Fees in Melbourne

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How do commissions work when selling your Melbourne house?

A quick introduction to real estate agent fees Melbourne

Melbourne has ranked number one as the most liveable city in the world for seven years in a row. Melbourne is known to many as the quirkiest and coolest city in Australia, with a fantastic nightlife scene and a busy CBD, the city is well deserving of the number one ranking. The capital city of Victoria, Melbourne, is also known as The Garden State, and it showcases this with an array of public parks and decorated gardens all over the city. The city has incredible eateries, art, culture and a good transport system. With such excellent infrastructure in place and the excessive growth over the last decade, it's a pretty good time to be a homeowner looking to sell in Melbourne.

Over the past 12 months, house prices in Melbourne have dropped by 10%. However, they've only dropped by 0.3% in the last month. So, market conditions are looking like they're improving. If you're considering selling your Melbourne home, now could be the right time to start looking into real estate agent commission rates across the city.

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 commissions and fees work in Melbourne?

Melbourne real estate agents create their commission rates based on supply and demand. Like the rest of Victoria, Melbourne operates on a system of deregulated fees. Deregulated fees allow an agent to set up their own structure. The good news is Melbourne is currently seeing its biggest population increase since the 1940s gold rush. As a result of more people, we are seeing more agents, and more agents mean more competition. As a result, we see a lower charge for commissions for agents to compete for your business. Agents need to compete for your business and so lowering the price of the commission is one way they will do this in Melbourne.

Melbourne is home to many suburbs, and the location of your property within the city will affect the commission you pay, the condition of the property and the property type. With this in mind, the best way to determine how commissions will work on your property sale is to do some homework. Comparing local agents will help you understand how different agents charge commissions, as well as give you an understanding of their work and how suitable they are for selling your property.

It's also a good idea to understand that the terms fee and commission are often charged separately in real estate to make sure you choose the right agent.

See an overview of Real Estate Agent Fees & Commissions in Victoria.

Here are some definitions to help clarify:


This is the term usually referring to the percentage allocation of the total cost of the property sold.


This is a term that is commonly associated with marketing, advertising and administrative costs. It's a good idea to discuss with your agent and define what costs fall under which term. This way, there will be no confusion or last-minute surprise costs.

What is the average real estate commission rate in Melbourne?

The average commission rate in Melbourne ranks at 1.93%, amongst the lowest of the capital city averages. The below charts highlight Melbourne's ranking alongside the remainder of Australia's capital cities. This isn't a big surprise, given what we know about the rate of Melbourne's property price growth. We would expect a competitive element amongst real estate agents in the city that is driving down the commission and fees rate.

City Ave. Fee
Canberra 2.19%
Sydney 1.87%
Darwin 2.49%
Brisbane 2.52%
Adelaide 1.90%
Hobart 2.67%
Melbourne 1.93%
Perth 2.28%
From LocalAgentFinder Data Researched September 2022, based on a $500,000 property sale

Melbourne East, Melbourne West, Melbourne North, and Melbourne Bayside have an average real estate commission 1.89% – 1.92%. This is due to increased competition amongst prospective buyers in these residential areas. Melbourne's most popular and fastest-growing suburbs see real estate agents charging some of the lowest fees.

Suburbs like Brighton, where there's high competition, have averaged around the 1.92% mark, whereas as you head further out, suburbs like Broadmeadows have averages above 2.03%.

While there is a clear correlation between proximity to the Melbourne CBD and average real estate agent fees, rates will vary from suburb to suburb, and there are exceptions on both ends of the scale.

Agent real estate 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 easy with LocalAgentFinder's leading online comparison service offering local agent information for sales performance, average sales price, fees, agent commission, and more.

Negotiating fees and commissions in Melbourne

With such competition amongst real estate agents, you are in a stronger position to negotiate your fees. Knowing the city's average will help give you a guideline on commission rates, but of course, your property type, the size of your home and the suburb will all play a part in how much commission you will pay. In order to ensure you are in the best possible position to negotiate, you should also have sound knowledge of how an agent will charge a commission.

REAL ESTATE AGENTS Commission type: Fixed rate or Tiered percentage.

Generally speaking, your real estate agent will charge commission in one of two ways.

Fixed rate agreement

A fixed rate is calculated by agreeing on a percentage of the total sale of the property.

This fixed rate approach means that the fee you agree to pay will never change, regardless of the end sale price of your property, the benefits of operating this way is that both parties have peace of mind and the security of an agreed amount.

Some people may find this method can hinder the estate from striving for the highest price and potentially selling the property to quickly.

Tiered percentage

The tiered percentage approach is more common for people to use when they are selling a larger house in a popular area and is generally believed to incentivise the agent. Tiered percentage operations on a sliding scale, for example, you may agree to a 2% commission rate if the sale price is $480,000 or less, and an additional amount if the property is sold for more than that. So, if the sale price is $500,000 you’ll pay 2% on first $480,000 (being $9,600) and, for example, 10% on the additional $20,000 (being $2,000). The total commission payable would be $11,600.

The potential disadvantage of this is that you may end up paying more commission than you had initially believed you would. There is no certainty around what you will pay in commission and this can cause unease.

Whatever commission structure you decide to follow, make sure both you and your agent have provided full visibility on your agreement. In order to do so, it’s a good idea to ensure everything you agree is in writing. Selling a house can be challenging and often we forgot minor details and so confirmation via the written word is always helpful.

Top tips for selling your house in Melbourne

We have helped thousands of Aussies sell their home, and we've learnt a thing or two along the way. Here are some tips to help you sell your home in Melbourne:

A real estate agent's fee is undoubtedly a key consideration when selecting an agent; however, it should not be the only one. Agents base their fees on a range of criteria, such as their experience, marketing strategy and expertise, and these factors should be researched and considered with equal weight.

Real estate agent fees across Melbourne will generally be lower the closer your property is to the CBD. To get a good idea of agent fees in your suburb and what services they can offer you, it's worth comparing several local agents. This way, you'll have all the information needed to make an informed decision.

Your agent should have a sound marketing plan that they are willing to share with you. Studies have shown that a sign outside your home is one of the most effective ways to sell your home. Although traditional and potentially an “old school” way to sell, your agent should know how to create the best signage possible. In addition to nailing traditional marketing strategies, your agent should have a strong online plan. Your real estate agent should have a great marketing plan and be ready and willing to share it with you.

Although traditional and potentially an “old school” way to sell, your agent should know how to create the best signage possible. In addition to nailing traditional marketing strategies, your agent should have a strong online plan. Your real estate agent should have a great marketing plan and be ready and willing to share it with you.

Proximity to amenities, like local schools and shopping centres, are among buyers' top priorities, so selecting an agent with a deep local knowledge of your area and its features is vital.

We know that hidden fees concern everyone when selling your home. At LocalAgentFinder, our comparison tool is completely free for homeowners, and the agent you choose will only pay LocalAgentFinder a referral fee after successfully selling your property.

Want to find out exactly what the best real estate agents are charging in your area?

LocalAgentFinder is an impartial, online comparison service that lets you compare a wide range of local agents to find the best agent for you. Get started now so that you can make the right decisions right from the start.

Real Estate Marketing Fees

The marketing costs of selling your property may or may not be included in your real estate agent fees. Marketing your property is one of the most important aspects of selling, so it's important to understand exactly what marketing fees you may be up for.

Most agents use a combination of traditional advertising and online advertising to get your property in front of potential buyers. Traditional methods may include print advertising, signage and open for inspections. In contrast, online methods may include promotion on real estate websites such as, and other property portals, as well as the agent's website, amongst other services.

Your agent should present you with a comprehensive marketing plan before you sign any agency agreement. This plan should detail the agent's proposed strategies for marketing your property and give you an estimate of the associated advertising costs.

Home Staging

Home staging services can add a significant amount to your agent's fees; however, the benefits of professional styling can be considerable when selling property.

Home staging involves dressing your property to appeal to the greatest number of potential buyers and can be an effective way to increase the property price.

If you are considering engaging a home stager, it's important to discuss this with your agent beforehand, as many real estate agents offer this service themselves or recommend a reputable company.

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.


Which suburbs have the highest real estate commission in Melbourne?

The suburbs with the highest real estate commission rates in Melbourne as of May 2021 are Bayles, Caldermeade, Heath Hill, Lang Lang East and Monomeith, with an average agent commission rate of 2.51%, followed by Catani and Dalmore at 2.45%. This is based on a property sale of $500k.

Which suburbs have the lowest real estate commission in Melbourne?

The suburbs with the lowest real estate commission in Melbourne are Somerton and Woodstock, with an average commission rate of 1.00%, followed by Sandringham at 1.41%. This is based on a property price of $500k.

Do you pay more commission closer to the centre of Melbourne's CBD?

In areas closer to the Melbourne CBD, commission rates are generally lower because there's high competition, and the agents try to offer competitive rates. Regarding regional areas, the commission rates tend to be higher because there's less competition for the agents, and they can charge higher rates.

Which regions have the highest real estate commission in Melbourne?

As of May 2021, the Melbourne - South East region has the highest real estate commission rate in Melbourne, with an average commission rate of 1.98%, followed by Melbourne - North East at 1.97%. This is based on a property sale of $500k.

Which regions have the lowest real estate commission in Melbourne?

As of May 2021, Melbourne - Inner East region has the lowest real estate commission rate in Melbourne, with an average commission rate of 1.88%, followed by Melbourne - West at 1.89%. This is based on a property sale of $500k..

Real Estate Agent Fees & Commissions by City

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 in November 2022.