Commission is not a fixed or official rate
There is no regulated or set commission rate in New South Wales. Commission is deregulated and always negotiable, and the ranges in this guide are typical market figures, not official rates. They are a guide for comparison only. Always get written quotes from your own local agents and confirm the current rate, what it includes and whether GST is on top before you rely on any number here.
Average real estate commission in NSW
In New South Wales, real estate commission typically runs from 1.8% to 2.5% of the final sale price, and around 2% is the most common rate. Commission is charged as a percentage of what your property sells for, paid by you as the seller out of the sale proceeds at settlement, and it is negotiable.
NSW sits at the lower end of the national range. States and territories with smaller sale prices, such as parts of regional Queensland, Western Australia and the Northern Territory, tend to see higher percentage rates because the dollar amount of commission has to cover the agent’s costs on a lower sale figure. In NSW, where Sydney and the major coastal and regional centres carry high property values, agents compete hard for listings and the typical rate settles around 2%.
That said, the rate moves with the property and the area. A straightforward home in a high-turnover Sydney suburb might attract a rate closer to 1.8%, while a lower-priced or harder-to-sell property in a thinner regional market might sit nearer 2.5%. The headline percentage matters far less than the dollar amount it produces, which is where the worked examples below come in.
Worked examples by sale price
Because commission is a percentage, the dollar figure scales with your sale price. The table below shows what the typical NSW range looks like in dollars at three rates: 1.8% at the lower end, 2% as the typical rate, and 2.5% at the higher end.
| Sale price | At 1.8% (lower) | At 2% (typical) | At 2.5% (higher) |
|---|---|---|---|
| $600,000 | $10,800 | $12,000 | $15,000 |
| $800,000 | $14,400 | $16,000 | $20,000 |
| $1,000,000 | $18,000 | $20,000 | $25,000 |
| $1,500,000 | $27,000 | $30,000 | $37,500 |
These figures exclude GST, which usually adds 10% on top, and they cover commission only, not marketing or conveyancing. For an exact figure on your own sale price, use our commission calculator, which has a NSW setting and turns the percentage into dollars for you.
~2%
The most common real estate commission rate in NSW. On a typical $800,000 sale that's $16,000 before GST.
Typical range runs 1.8% to 2.5%, and it's negotiable
How commission is structured in NSW
The standard structure in New South Wales is a flat percentageof the sale price. The agent quotes a single rate, say 2%, and that rate applies to the whole sale price whatever the property eventually sells for. It’s simple to compare between agents, which is why most NSW vendors see it.
Some agents offer a tiered or performance-based structure instead. A tiered agreement might apply one rate up to a target price and a higher rate on everything above it, which rewards the agent for pushing past the figure you both expect. Done well, this aligns the agent’s incentive with yours, since they only earn the premium rate if they get you a premium result. It’s worth asking about, especially if you think there’s upside in your sale.
Almost all NSW agents work on a no sale, no feebasis. Commission is only payable if the property sells, and it comes out of the proceeds at settlement rather than being paid upfront. That’s a big part of why agents are motivated to achieve the best price they can.
What the commission usually covers:
- Appraisal and pricing strategy. The agent assesses the property and recommends a price or reserve.
- Listing and campaign management. Coordinating the sale process from listing through to exchange and settlement.
- Open homes and inspections. Hosting inspections, qualifying buyers and reporting feedback to you.
- Negotiation. Negotiating with buyers on your behalf to achieve the best price and terms.
What’s usually charged separately, on top of commission:
- Marketing and advertising. Listings on the major property portals, signboards and social or print campaigns.
- Photography and video. Professional photos, floor plans, and any video or drone work.
- Styling and staging. Optional, but common in Sydney, where presentation drives the early competition.
Marketing costs are normally payable whether or not the property sells, unlike commission, so confirm those figures separately before you sign.
Is commission negotiable in NSW?
Yes. Commission in New South Wales is deregulated, which means there is no government-set rate and no legislated minimum or maximum. Every agent sets their own rate, so the percentage on the first agency agreement you read is an opening number, not a fixed price.
“There’s no official commission rate in NSW. The number you’re first quoted is where the negotiation starts, not where it ends.”
How to negotiate commission in NSW without shooting yourself in the foot:
- Compare two or three agents.Getting competing appraisals gives you both leverage and a sense of what’s fair in your suburb. Choose agents who genuinely sell your type of property locally, not whoever letterboxes you most.
- Negotiate the rate and the marketing. The commission percentage is only half the cost. The marketing budget is often where the bigger savings sit, so push on both rather than fixating on the headline rate alone.
- Be wary of the cheapest. An agent who negotiates an extra $20,000 on your sale earns their commission back many times over, even at a slightly higher rate. The lowest quote is rarely the best result. Ask each agent to back their number with recent comparable sales in your area.
For context, all agents who sell property in New South Wales must be licensed through NSW Fair Trading, and many belong to the Real Estate Institute of NSW (REINSW). Neither body sets commission rates, but checking that an agent is properly licensed is a sensible first step.
Commission vs your other selling costs
Commission is the largest single cost of selling in NSW, but it isn’t the only one. On top of the agent’s fee you’ll pay for marketing and photography, conveyancing or legal work, usually some presentation or styling, and a small mortgage discharge fee if you have a loan to pay out. If the property is an investment rather than your home, capital gains tax can be larger than commission again.
To see how commission fits into the full picture, read the full cost of selling, which walks through every line item with a worked example. And if you want to see how NSW compares with the rest of the country, the national agent fees guide sets out commission ranges state by state and what’s included.
Get the right agent first
The cheapest commission rarely means the best return. The agent who gets you a stronger sale price more than covers a slightly higher fee, so the order that saves the most money is to pick the right agent first, then negotiate the rate.
- Get an accurate value. Before you talk fees, know what your home is worth. Our guide to how much your house is worth covers the three ways to value a home and how to land on a figure you can trust.
- Choose the agent on results, not rate. The how to choose a selling agent guide covers the interview, the over-quote trap and what to negotiate.
- Size the commission. Run your price through the commission calculator so you know exactly what the fee means in dollars before any conversation.
Sources and methodology
- NSW Fair Trading: Real estate agents · Licensing of agents and consumer guidance on agency agreements in NSW
- Real Estate Institute of NSW (REINSW) · Industry body for NSW real estate agents
- ASIC MoneySmart: Selling a property · Consumer guidance on agent commission, marketing and selling costs
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Common questions
What is the average real estate commission in NSW?
In New South Wales, commission typically falls between 1.8% and 2.5% of the final sale price, and around 2% is the most common rate. NSW sits at the lower end of the national picture because Sydney and the major regional centres have high property values, and agents compete hard for listings where the dollar amount of commission is already substantial. There is no fixed or official rate, so the figure you are quoted is a starting point you can negotiate.
How much do real estate agents charge in New South Wales?
Most NSW agents charge a percentage of the sale price rather than a flat fee. At the typical 2% rate, a $600,000 sale costs $12,000, an $800,000 sale costs $16,000 and a $1,000,000 sale costs $20,000 in commission, before GST. Lower-quoting agents may sit closer to 1.8% and higher service or regional agents closer to 2.5%. Marketing, photography and styling are charged separately on top, so always ask for the full cost, not just the commission rate.
Is real estate commission negotiable in NSW?
Yes. Commission is deregulated in New South Wales, which means there is no government-set rate and every agent sets their own. The percentage on the first agency agreement you read is an opening number, not a fixed price. The way to negotiate well is to get appraisals from two or three local agents, compare the rate against the service and the marketing budget, and ask each agent to justify their figure. Pushing the rate down even slightly on a Sydney sale price is real money.
Do you pay commission if the house doesn't sell?
Generally no. Most NSW agents work on a no sale, no fee basis, so commission is only payable if the property actually sells, usually at settlement out of the proceeds. Marketing costs are different, though. Photography, portal listings and signage are normally payable whether or not the property sells, and they are billed separately from commission. Always confirm both points in the agency agreement before you sign so there are no surprises if the campaign stalls.
Does commission include GST in NSW?
Usually commission attracts 10% GST on top of the quoted rate. Some agents quote a rate that already includes GST and others quote it exclusive of GST, so the same headline number can mean two different final figures. Before you compare agents, ask each one whether their rate is inclusive or exclusive of GST and get the total dollar amount in writing. The worked examples in this guide are shown before GST, so add 10% to estimate what you would actually pay.
Keep reading
Commission Calculator
Work out commission on your NSW sale price.
ReadThe Cost of Selling a House
Every selling cost beyond commission.
ReadReal Estate Agent Fees (National)
How fees and commission work across Australia.
ReadHow to Choose a Selling Agent
Pick the right agent, then negotiate the fee.
ReadHow Much Is My House Worth?
Get an accurate value before you list.
Read