How to Negotiate Real Estate Agent Commission in Australia (2026)

Yes, you can negotiate real estate agent commission in Australia. No state or territory sets a rate, and the consumer regulators in NSW, Victoria and Queensland all say the figure is agreed between you and the agent. The rate is only one of five things on the table: you can also negotiate the structure, the marketing budget, the length of the exclusive period and what you owe if the sale falls over.

This guide covers each of those, the agreement rules in the three largest states, the questions to ask, and when a low commission starts costing you money.

Commission is deregulated and negotiable in every state

• NSW. NSW Fair Trading states that you "can negotiate with the agent about the amounts of any commissions, fees or other expenses", and recommends comparing the printed fee lists of several agents before signing.
• Victoria. Consumer Affairs Victoria states that "the commission or agent's fee is negotiable", and that an agent must tell you commissions and outgoings are negotiable before you sign. An agent who skips that step cannot claim the commission.
• Queensland. The Queensland Government states that "the commission must be set in writing when you appoint your agent", and advises comparing quotes from two or three agents. The Property Occupations Act 2014 sets no maximum rate.

What agents charge is a market observation, not a rule. Published industry estimates (Canstar, citing OpenAgent data, August 2026) put state averages between 1.81% (ACT) and 2.57% (Queensland), with NSW at 1.94% and Victoria at 1.87%. Those are averages of agreed rates, so plenty of sellers paid less. Our national fees guide and the state pages for NSW, Victoria and Queensland set out the ranges.

What is actually negotiable

1. The rate

Confirm whether the quote includes GST (Victoria requires commission and marketing expenses to be shown with GST set out separately; elsewhere, ask). Then convert it to dollars. On a $900,000 sale, 2.0% is $18,000 and 1.8% is $16,200, so a 0.2 point move is $1,800. Run your own figures in the agent commission calculator.

2. A tiered or incentive structure

A tiered structure pays a lower base rate up to an agreed price and a higher rate on anything above it. Check the arithmetic at more than one price.

Worked example, $900,000 expected price, before GST:

At $900,000 the tiered deal saves $1,800. At $950,000 it costs $2,200 more ($16,200 plus 10% of the extra $50,000, which is $5,000). The two cross at $922,500. A tier only works for you if the threshold sits at a price the property would not reach without extra effort; set below what it would plainly fetch anyway, it is a bonus for nothing. Ask for comparable sales before agreeing a threshold, and keep the incentive rate modest.

3. The marketing budget

Marketing is a separate line from commission in every state. Consumer Affairs Victoria says the amount spent on marketing is negotiable and must be recorded in the authority. NSW requires the agreement to state the amounts or estimated amounts of any expenses you will pay. Queensland says you reimburse expenses "only if you discuss and agree on them in advance", and suggests asking for a marketing plan. Our marketing costs guide itemises typical component costs.

4. The exclusive agency period

Under an exclusive agreement the agent is paid if the property sells during the term, whoever finds the buyer. The length is negotiable (Queensland caps it, Victoria sets a default; see below), and a shorter term keeps your options open if the campaign stalls.

5. What you owe if the sale falls over

Settle three things in writing: whether commission is payable on settlement or earlier (Queensland notes most contracts make it payable once the sale is unconditional); whether marketing costs are payable if the property does not sell (Victoria suggests a "no sale, no fee" arrangement); and whether the agent can claim commission on a buyer they introduced who signs after the agreement ends.

The agency-agreement rules that give you leverage

In all three states an agent who breaks the rules can lose the right to commission. Read the document slowly.

New South Wales

The Property and Stock Agents Act 2002 applies; NSW Fair Trading summarises the rules.

• Writing and the 48-hour rule (s 55). The agreement must be in writing and signed, and the agent must serve you a signed copy within 48 hours or lose the right to commission and expenses under it.
• One business day cooling-off (ss 59 and 60) for residential or rural agency agreements. It starts when you sign and ends at 5pm on the next business day or Saturday, excluding public holidays and Sundays. Rescind in writing and you pay nothing. It can be waived only if the agent gave you the unsigned agreement, the approved consumer guide and the approved waiver form at least one business day before signing.
• Rebates (s 57). The agreement must identify the source and estimated amount of any rebates or discounts the agent receives on expenses you pay. No disclosure, no expenses.
• Estimated selling price. A single figure or a range whose top is no more than 10% above the bottom, backed by evidence, and revised in writing if it stops being reasonable.
• Term. No statutory minimum or maximum; the length is negotiated, and ending it takes the written notice the agreement sets.

Victoria

The Estate Agents Act 1980 applies; Consumer Affairs Victoria publishes the authority requirements.

• Commission stated as a dollar amount or a percentage with a dollar example. Leave it out and the agent risks losing the commission.
• You must be told commission and expenses are negotiable before signing, or the agent cannot claim or sue for them.
• Exclusive authority default term. Unless otherwise agreed, it ends 60 days after signing for a private sale, or 30 days after the auction date. Agents often propose longer; you do not have to accept it.
• Rebate and complaints statements in approved wording are compulsory, and keeping a rebate is illegal.
• Disputes over commission go to Consumer Affairs Victoria within 28 days of receiving the agent's account.

Queensland

The Property Occupations Act 2014 applies; the appointment is made on the approved Form 6 (Form 6A for commercial property).

• No appointment, no commission. An agent cannot act without a written appointment (s 102) or recover commission unless properly appointed (s 89). The form must state the fees, charges and commission for each service (s 104), and a percentage commission is worked out only on the actual sale price (s 105).
• Sole or exclusive appointments are capped at 90 days for residential sales (ss 103 and 112). Before signing, the agent must give you an approved notice and discuss your "entitlement to negotiate the term of the appointment up to a maximum term of 90 days". A longer appointment is ineffective from the start.
• Terms over 60 days can be ended by either party on 30 days' written notice, but must run at least 60 days (s 114).
• Reappointment cannot be signed earlier than 14 days before the term ends (s 110), and changing the commission requires a new Form 6, which is a natural point to renegotiate.

Other states and territories

Each remaining jurisdiction requires a written agreement before an agent can claim commission, but the detail differs. The rules for South Australia, Western Australia, Tasmania, the ACT and the NT sit with each state or territory consumer affairs regulator; our national fees guide covers the rates in each.

Questions to ask, and what not to give away

Ask every agent you interview:

1. What is your commission, including GST, in dollars on your own estimated price?
2. What is in the marketing schedule, item by item, and which items are optional?
3. How long is the exclusive period, and what notice ends it?
4. Is commission payable on unconditional exchange or on settlement?
5. If the property does not sell, what do I owe?
6. Do you receive any rebate on advertising or other expenses?
7. What are the three comparable sales behind your price estimate?

Three things not to give away:

• An open-ended exclusivity period. Queensland law stops you; NSW and Victorian law do not. Set a fixed end date and a short notice period.
• A marketing schedule you have not itemised. A lump sum hides margin. Ask for each line, the supplier and any rebate.
• A lower rate traded for a higher appraisal. An agent who drops the rate but lifts the estimate has given you nothing unless the estimate is evidence-based. NSW and Victoria both require a reasonable estimate, and in NSW you can ask to see the evidence. An independent price opinion before you sign gives you your own benchmark to test the estimate against. Our guide to choosing a selling agent covers the appraisal trap in depth.

Vendor disclosure obligations sit outside the agreement; see vendor disclosure across the states.

When a low commission costs you more

A cheap rate is only cheap if the result holds. Watch for:

• A thin campaign. An agent who concedes 0.5 points may recover it by cutting photography and the listing tier. On a $900,000 sale that is $4,500; a weak first fortnight online can cost more in price.
• A flat fee with a high floor. A flat fee equal to 2.5% of a realistic price is not a discount.
• A junior agent on the file. Ask who will attend inspections and run the buyer negotiation.
• Marketing charged whether or not it sells. A low rate paired with a large non-refundable marketing bill moves the risk to you.

The test is the net figure: expected price less commission, marketing and a longer campaign. The cost of selling calculator and our cost of selling a house guide put the whole picture in one place.

FAQs

Is it rude to negotiate commission with a real estate agent? No. NSW and Victorian regulators publish that commission is negotiable, and Victoria requires the agent to tell you so before you sign.

What is a reasonable commission to aim for? There is no official figure. Published industry estimates (Canstar, citing OpenAgent data, August 2026) show state averages from 1.81% to 2.57%. Treat the state average as a starting point, not a floor.

Can I cancel an agency agreement after signing? In NSW, yes, within the one business day cooling-off period at no cost. In Queensland, a sole or exclusive appointment over 60 days can be ended on 30 days' written notice after the first 60 days. In Victoria, the authority runs to its stated end date. Ending an agreement incorrectly and selling through another agent can mean two commissions.

Does a tiered commission always favour the seller? No. It favours you only if the threshold sits at a price the property would not reach without extra effort. Check the dollar outcome below, at and above the threshold before agreeing.

Do I still pay marketing costs if the house does not sell? Often yes, unless the agreement says otherwise. Victoria's regulator suggests a "no sale, no fee" arrangement covering outgoings as well as commission. Get the position in writing before the campaign starts.

Where AgentBridge fits

AgentBridge is a property distribution business, not a listing agent. Sellers pay a published distribution fee, which runs 30 to 40% less than a traditional agent, and the property brief goes to the buyers agents who match it from our list of 80+. Read how it works and the fees page before you compare.

Related guides

• Real estate agent fees and commission in Australia
• Real estate agent fees in NSW
• Real estate agent fees in Victoria
• Real estate agent fees in Queensland
• How much it costs to sell a house in Australia
• Marketing and advertising costs when selling a house
• How to choose a selling agent in Australia
• Vendor disclosure across Australian states
• Agent commission calculator
• Cost of selling calculator

Sources

• NSW Fair Trading, Agency agreements for the sale of property in NSW (accessed 10 October 2026)
• NSW Fair Trading, Agency agreements, information for property professionals (Property and Stock Agents Act 2002 ss 55, 56, 57, 59, 60) (accessed 10 October 2026)
• Consumer Affairs Victoria, Selling property with or without an agent (accessed 10 October 2026)
• Consumer Affairs Victoria, Authorities, rebates and commission (estate agents) (accessed 10 October 2026)
• Queensland Government, Appointing a real estate agent (accessed 10 October 2026)
• Queensland Government, Commissions and costs when selling a home (accessed 10 October 2026)
• Queensland Government, Appointment to act as a property agent (Form 6 and 6A) (accessed 10 October 2026)
• Property Occupations Act 2014 (Qld), ss 88, 89, 102 to 106, 110, 112, 114 (accessed 10 October 2026)
• Canstar, Real estate commission fees by state (published industry estimates, citing OpenAgent data, August 2026) (accessed 10 October 2026)

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General information only, not financial, legal or taxation advice. Agency agreement rules change; confirm the current position with the relevant state regulator and get your own professional advice before signing.