Real estate agent commission in NSW: what's normal, what it covers and how to negotiate

What commission agents charge in NSW

There is no set commission in NSW. Each agent sets their own rate, and you agree it with them in writing before they start. Most residential agents charge a percentage of the sale price, plus GST. Published averages for NSW sit at a little over 2%: comparison site OpenAgent put the state average at 2.31% in August 2026, with rates as low as about 1.2% in competitive parts of Sydney and up to around 3% in some areas. Regional and lower-priced markets often sit at the higher end, because the work involved in selling a home does not shrink with its price.

On a home selling for $800,000, the difference between 2% and 2.5% is $4,000 before GST. Worth negotiating, and worth understanding before you sign.

What commission costs on a typical sale

Commission plus GST at three common rates. Marketing and other costs are extra.

How commission is worked out

Agents usually quote commission in one of three ways:

• A flat percentage of the final sale price. The simplest and the most common.
• A fixed fee, agreed up front regardless of the price. Less common for houses, and worth checking exactly what it includes.
• A tiered or incentive rate, where the agent earns a lower percentage up to an agreed price and a higher one above it. This rewards the agent for getting you more, but read the tiers carefully so the trigger price is realistic.

Whichever structure you choose, commission is normally paid from the sale proceeds at settlement, once the sale has completed.

What commission does not cover

Commission pays for the agent's work. Marketing is usually a separate cost, paid by the seller, and sometimes due before the home sells. It can include:

• listings on realestate.com.au and Domain, and any premium placement
• professional photos, floor plans and video
• a signboard and printed brochures
• an auctioneer's fee, if you sell at auction
• styling or furniture hire, if you choose it

Ask for every cost, itemised, before you agree to anything. Our article on the costs of selling a house in NSW covers the full list, including conveyancing.

What the law says in NSW

• It must be in writing. An agent can only charge commission and expenses that are set out in a signed agency agreement.
• The estimated selling price goes in the agreement. Under NSW underquoting rules, the agent must give you an estimated selling price with reasonable grounds, such as comparable sales, and keep it up to date.
• You get the consumer guide. The agent must give you the NSW Fair Trading guide to agency agreements before you sign.
• Disputes have a home. If you disagree with an agent about commission or fees, NSW Fair Trading and the NSW Civil and Administrative Tribunal deal with these complaints.

Can you negotiate commission?

Yes, and most agents expect the question. A few ways to approach it:

1. Get two or three proposals from local agents, each with the commission, marketing costs and estimated selling price in writing.
2. Compare results as well as rates. An agent who charges 0.3% more but consistently sells for more in your area can leave you better off.
3. Ask about an incentive structure if you want the agent rewarded for a higher price.
4. Agree the marketing budget separately, so a discount on commission is not quietly made up elsewhere.

What a good agent does for the money

Commission pays for the whole job, most of which a seller never sees: pricing the home from the evidence, preparing the campaign, running every inspection, following up each buyer, negotiating offers, keeping the contract moving and getting the sale to settlement. In smaller regional markets, that can also mean more travel, fewer buyers per home and longer campaigns. When you compare agents, ask what each one will actually do, week by week.

Is 3% commission a lot?

In NSW, 3% is at the top end of published averages. It can still be reasonable for a harder-to-sell or lower-priced property, or in a regional market where agents travel further and sell fewer homes. The fair test is what you get for it: the agent's local results, the marketing included and how hard they will work for your price. Ask the agent to explain the rate against their recent sales nearby.

How commission works with our service

Asking questions, getting your free report and talking it through with Matt, our approved local agent, costs nothing and commits you to nothing. If you later decide to sell with Matt, commission and every cost are agreed with you in writing first, in a standard NSW agency agreement, before any marketing starts. If you want to compare agents first, our list of 21 questions to ask a real estate agent covers what to ask about fees, and how to choose an agent in NSW covers the rest.