When buying or selling a property, one of the most significant expenses to consider is the real estate agent’s fees, as they significantly impact your final sale price. Having a clear understanding of how these fees work can help you negotiate confidently and ensure you get the best value from your agent.
In this article, we’ve provided a comprehensive guide to real estate agent fees. Whether you’re a buyer or seller, this guide will help you navigate the real estate process with much clarity.
Table of Contents
What are real estate agent fees?
Real estate agent fees are typically calculated as a percentage of the property’s final sale price. This commission-based model is the standard approach across the Australian real estate industry. It ensures that the agent is motivated to secure the highest price for your property, as their earnings are directly linked to the sale amount.
In most cases, sellers generally only pay a commission after the property is sold, and the contract is unconditional. This means sellers do not have to worry about paying an agent unless the property is sold.
Types of real estate agent fees
In Australia, there are two common commission structures:
- Fixed commission
- Tiered commission
The right choice depends on your goals, the property’s value, and how much you are willing to invest in securing the best possible sale.
1. Fixed Commission
A fixed commission structure means the agent and seller agree on a set percentage before the sale. Fixed commission rates typically range between 2% and 3% of the total sale price but can vary based on location and the level of service provided.
For example, if your Adelaide property sells for $800,000 with a fixed commission rate of 2.5%, the real estate agent fee would be $20,000 only.
Advantage
- This method offers transparency and predictability, as you will know exactly how much you will pay the agent once the sale is finalised.
- Regardless of market fluctuations and how much the property ultimately sells for, the commission amount remains the same.
2. Tiered Commission
A tiered commission structure rewards the agent for exceeding a set price. This model works on a performance-based scale, where the agent earns a set commission rate if they sell at a set price and a higher commission for achieving a higher sale price above the set price.
For example, an agent might earn 2% on the set price of $800,000 but 4% on anything above that amount. If your property sells for $900,000, the commission would be calculated as follows:
- 2% of $800,000 = $16,000
- 4% of $100,000 = $4,000
- Total commission = $20,000
Advantage
- This commission structure motivates agents to negotiate aggressively and push for the highest possible sale price.
- While it may lead to a slightly higher commission, it often results in a better final sale price for the seller, creating a win-win situation for both parties.
Real estate agent fees: What’s Included and What’s Not?
| Real Estate Agent Fees Cover | Real Estate Agent Fees DO NOT Cover |
|---|---|
| Tailored advice and market insights | Creative design (print & digital) |
| Industry connections and network access | Photography & videography |
| Ongoing support throughout the process | Copywriting & content creation |
| Expert negotiation skills | Staging & styling fees |
| Paperwork management | Print advertising costs |
| Hosting open homes and private inspections | Digital advertising (online listings, social media ads) |
| Follow-up with potential buyers | |
| Responding to offers and negotiating terms | |
| Auction management (if applicable) | |
| Liaison with conveyancers, solicitors, banks, and surveyors | |
| Coordination of building and pest inspections | |
| Management of legal obligations | |
| Facilitating settlement and handover |
What factors influence real estate agent fees?
- Location
- Real estate markets differ across regions, affecting commission rates. In competitive areas with high property demand, agents may charge lower fees due to increased competition.
- Property Value
- Higher-value properties may attract lower commission rates, as the total commission amount will still be substantial.
- Agent’s Experience and Reputation
- Well-established agents with a strong track record may charge higher fees due to their expertise and ability to secure better deals.
- Level of Service Provided
- Full-service agents handling marketing, negotiations, and legal paperwork charge higher fees than discount agents who offer limited services.
Are real estate agent fees negotiable?
Yes, real estate agent fees are negotiable. While standard commission rates exist, sellers have the opportunity to negotiate fees based on market conditions, competition among agents, and the level of service required.
To negotiate better fees:
- Compare multiple agents to find the best commission rate and service level in your area.
- Ask for a discount if you’re selling a high-value property.
- Request an all-inclusive package to avoid additional marketing costs.
- Opt for a tiered commission structure as this incentivises agents to negotiate a better sale price.
Are real estate agent fees worth it?
Many sellers wonder if paying the real estate agent is worth the investment. While selling privately might seem like a way to save money, working with a professional agent often leads to better results. Agents have the expertise, market knowledge, and negotiation skills to secure higher offers, making their fees worthwhile.
Additionally, agents handle all legal paperwork, open houses, and buyer inquiries, saving sellers time and reducing stress. A well-connected agent can also access a larger pool of potential buyers, increasing competition and driving up the final sale price.
Looking for the best places to invest? Check out our guide on the Top 10 Best Suburbs to Invest in Adelaide in 2025.
Meet Liz Miles – Your trusted real estate agent Adelaide!
I’m Liz Miles, a leading real estate agent serving the Adelaide community. With years of proven success in the local property market, I’ve earned my reputation as the real estate agent Adelaide homeowners consistently trust for outstanding results. Whether you’re looking for expert guidance on real estate agent fees, tailored marketing strategies, or professional support throughout the selling process, I’m here to help.
Contact me today, and let’s work together to get the best price for your property!