Commission isn't fixed, and it's always negotiable
There is no official or regulated commission rate in Victoria. Commission is deregulated, so the percentages in this guide are typical market figures, not set rates, and they vary by agent, suburb and property value. Treat every number here as indicative, get written quotes from your own local agents, and confirm the current rate (and whether GST is included) before you rely on it.
Average real estate commission in VIC
Real estate commission in Victoria typically ranges from 1.6% to 2.5% of the final sale price, with 2% the most common rate. Commission is paid by the seller, charged as a percentage of what the property actually sells for, and it is always negotiable.
By national standards, Victoria sits towards the lower end. Commission rates tend to be lower in the larger, higher-value capital cities and higher in regional and smaller markets, and Melbourne’s high median price pulls Victorian rates down. The typical 2% in VIC is in line with New South Wales and below the 2.5% to 3% more common in states like Queensland and Western Australia. Within Victoria, premium Melbourne suburbs often see rates closer to the bottom of the range, while smaller regional sales can sit nearer the top.
1.6–2.5%
Typical real estate commission range in Victoria, with 2% the most common rate. Charged on the final sale price and paid by the seller at settlement.
Indicative only, and excludes GST
Commission is normally quoted before GST, and in Victoria it usually attracts 10% GST on top of the rate. A 2% commission therefore effectively costs 2.2% once GST is added. Agents differ on whether they show the rate inclusive or exclusive of GST, so always ask which one you are being quoted before you compare.
Worked examples by sale price
Because commission is a percentage, the dollar figure scales with your sale price. Here is what the typical Victorian range looks like in dollars across common sale prices, at the lower end (1.6%), the typical rate (2%) and the higher end (2.5%).
| Sale price | At 1.6% (lower) | At 2% (typical) | At 2.5% (higher) |
|---|---|---|---|
| $600,000 | $9,600 | $12,000 | $15,000 |
| $800,000 | $12,800 | $16,000 | $20,000 |
| $1,000,000 | $16,000 | $20,000 | $25,000 |
| $1,500,000 | $24,000 | $30,000 | $37,500 |
These figures exclude GST, which is normally added on top, and they cover commission only, not marketing. For an exact figure on your own sale price, run it through our commission calculator, which has a VIC setting.
How commission is structured in VIC
Most Victorian agents charge a single flat percentage of the sale price, for example 2% across the board. Some offer a tiered or performance-based structure instead, where a higher percentage applies to the amount achieved above an agreed target price. A performance structure can align the agent’s incentive with yours, since they earn more only if they sell for more, and it is worth asking about on a competitive sale.
“The commission rate is the line most Victorian sellers accept at face value. It’s the one most worth negotiating, and on a “no sale, no fee” deal you only pay it if the agent delivers.”
Almost all Victorian agents work on a “no sale, no fee” basis. Commission is only payable if the property sells, and it comes out of the sale proceeds at settlement rather than upfront. That means the commission rate is genuinely at risk for the agent, which is part of why it is negotiable.
What the commission rate generally includes:
- Appraisal and pricing strategy, including a recommended price range or reserve
- Listing and campaign management across the sale
- Open homes and private inspections, run and managed by the agent
- Negotiation with buyers on your behalf to achieve the best price and terms
- Coordination with your conveyancer through to exchange and settlement
What is usually charged separately, on top of commission:
- Marketing and advertising, including portal listings on the major property sites and signboards
- Professional photography and video
- Property styling or staging, where you choose to use it
Marketing is usually payable whether or not the property sells, so confirm the marketing budget and when it is due separately from the commission rate.
Is commission negotiable in VIC?
Yes. Commission is deregulated in Victoria, which means there is no official rate set by government and agents are free to set their own. The Real Estate Institute of Victoria (REIV) is the industry body, but it does not fix commission, and agents are licensed and regulated through Consumer Affairs Victoria rather than through any scheme that sets prices. The rate on the first agency agreement you read is an opening number, not a fixed fee.
How to negotiate well in Victoria:
- Compare two or three agents. Get written quotes from agents who actually sell your type of property in your suburb. Competing quotes give you both leverage and a sense of what is fair locally.
- Negotiate the rate and the marketing. The headline commission is only part of the cost. Push on the marketing budget too, since that is where packages quietly balloon, and clarify whether GST is included in the rate.
- Be wary of the cheapest quote.The lowest rate is not automatically the best value. An agent who negotiates a higher sale price earns their commission back many times over, so weigh the rate against the campaign and the agent’s track record, not in isolation.
Commission vs the rest of your selling costs
Commission is the largest cost of selling in Victoria, but it is not the only one. On top of the agent’s fee you will usually pay for marketing and photography, conveyancing or legal work, and some presentation before listing, and if the property is an investment rather than your home there can be capital gains tax to consider.
For the full picture of what selling costs beyond the agent’s commission, read the full cost of selling. And to see how Victorian commission compares with the rest of the country and what is and isn’t included nationally, the national agent fees guide sets out the rates by state.
Getting the right agent and fee
The cheapest commission rarely beats the agent who sells your home for more. The order that saves the most money is to size the fee, choose the right agent, then negotiate the rate, not the other way around.
- Size the fee for your price. Run your expected sale price through the commission calculator using the VIC setting so you know what 2% means in dollars before any conversation.
- Get a real appraisal and pick the agent. A free appraisal from a local agent gives you a market-facing price, and our guide to how to choose a selling agent covers the interview, the over-quote trap and what to negotiate.
- Get the full process in one place. The free selling guide pulls costs, agent selection and the timeline into a single PDF, personalised to your suburb.
Sources and methodology
- Consumer Affairs Victoria: Estate agents and commission · Agent licensing and the deregulation of commission in Victoria
- Real Estate Institute of Victoria (REIV) · Industry body context for the Victorian agent market
- ASIC MoneySmart: Selling a property · Consumer guidance on agent fees, GST and marketing costs
Take the full guide with you.
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Common questions
What is the average real estate commission in VIC?
Real estate commission in Victoria typically ranges from 1.6% to 2.5% of the sale price, with 2% the most common rate. It is charged as a percentage of the final sale price and paid by the seller at settlement. At 2%, a $800,000 sale costs $16,000 in commission before GST. There is no official or fixed rate, so the figure you are quoted varies by agent, suburb and property value, and it is always negotiable.
How much do real estate agents charge in Victoria?
Most Victorian agents charge a commission of between 1.6% and 2.5% of the sale price, clustered around 2%. On a $600,000 sale that is roughly $9,600 to $15,000, and on a $1,000,000 sale it is roughly $16,000 to $25,000, before GST. Commission almost always sits separately from marketing, which is billed on top. Because rates are not set by law in Victoria, the only way to know what you will pay is to get written quotes from a few local agents.
Is real estate commission negotiable in VIC?
Yes. Commission is deregulated in Victoria, which means agents set their own rates and the percentage you are first quoted is a starting point, not a fixed price. To negotiate well, compare two or three agents, negotiate on both the rate and the marketing budget, and be wary of the cheapest quote if it comes with a weaker campaign. Shaving even a fraction of a per cent off a typical sale price is real money, so it is worth the conversation.
Do you pay commission if the house doesn't sell?
Generally no. Most Victorian agents work on a "no sale, no fee" basis, so commission is only payable if and when the property sells, usually at settlement from the sale proceeds. Marketing costs are different. Photography, portal listings and advertising are usually billed separately and are often payable whether or not the property sells. Always check exactly when commission is triggered, and what happens to marketing if the campaign is withdrawn, before you sign the agency agreement.
Does commission include GST in VIC?
Usually not in the headline number. Real estate commission in Victoria normally attracts 10% GST on top of the quoted rate, so a 2% commission effectively costs 2.2% once GST is added. Some agents quote the rate inclusive of GST and some quote it exclusive, which makes a real difference to the final bill. Always ask whether the rate you are being quoted includes GST so you are comparing agents on the same basis.
Keep reading
Commission Calculator
Work out commission on your VIC 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