If you're selling your property in Victoria, expect to pay your agent about 1.80% of the sale price. That's the state average, including GST, according to internal data.

According to internal data, Victorian commissions can be as low as 1.06% or as high as 3.29%. In Melbourne, the average is 1.76% including GST.

Commission is usually the biggest single cost of selling a house, ahead of marketing and conveyancing. Across Australia, the average is about 2% (2.01%, according to internal data). What you pay depends on where you sell, your home's price and the agent you choose.

Understanding real estate agents' commissions in Victoria

Because commission rates aren't set by law, there's no 'standard' rate payable in Victoria. Like elsewhere in Australia, commissions are 'set' by the market, and you're free to negotiate the commission with your agent. In fact, Victorian law says the agent must tell you, before you sign, that the commission and marketing costs are open to negotiation.

That doesn't mean every agent will agree to a much lower rate, but there may be room to move. Even a small difference counts: 0.2 of a percentage point on an $800,000 sale is $1,600.

What is commission structure?

Commission can take one of three forms, or a mix of them. With a set percentage, you pay one rate on the whole sale price.

A tiered commission charges different rates at different prices, for example a higher rate on the part of the price above an agreed amount. The idea is to reward the agent for a better result.

With a fixed fee, you pay a set dollar amount, whatever the price.

Consumer Affairs Victoria warns that an agent may read a tiered rate as meaning the higher rate applies to the whole price. So if you're offered one, ask the agent to show you in dollars what you'd pay at a few different prices.

What's the average real estate agent commission in Victoria?

According to internal data, the average commission across Victoria is 1.80% including GST. That's based on 4,211 commissions between 1 January 2025 and 1 October 2026. Commissions can be as low as 1.06% or as high as 3.29%, and they vary from area to area.

Because these rates include GST, check whether your quote does too. A rate of 2.2% including GST is 2% before GST.

To see just how much commission rates can vary between areas, check out the table below.

If your area isn't listed, our commission calculator shows the average where you are.

Real estate agent fees in Melbourne by area

If you're selling in Melbourne, the average commission is 1.76% including GST. Across the city, area averages range from 1.63% in the Yarra Ranges to 2.05% in the CBD.

The commission you pay makes a big difference. In fact, it's usually the largest single cost of a property sale. Let’s explore two examples below:

• A $1 million sale in Eastern Melbourne, where the average commission is 1.67%, would mean $16,700 in commission.
• The same sale in the Latrobe Valley, where the average is 2.09%, would mean $20,900 in commission.

That's $4,200 more for the same price. Both examples use each area's average across all prices, so treat them as a guide.

If you're looking to sell your home anytime soon, it's a good idea to calculate the cost of selling your home to help you budget accordingly.

What factors could influence the commission rate?

What you pay ultimately depends on where you live, how much your home is worth and what the agent includes. Let’s take a look at these factors in more detail.

Location

Where you live, or where your property is located in Victoria, will determine how much commission you pay. Many areas outside Melbourne average more than the city's 1.76%, such as Bendigo and the Latrobe Valley at 2.09%. But not all: Geelong (1.72%) and the Bellarine Peninsula (1.67%) average less.

Helpful resource: Get a suburb profile for any suburb in Australia

How much your home is worth

In Melbourne, the dearer your home, the lower the average rate, according to internal data. For example, it's 2.26% for homes sold for up to $500,000, 1.72% between $750,000 and $1 million, and 1.40% between $2 million and $3 million.

But you'll usually still pay more in dollars on a dearer home. At those averages, the commission on a $900,000 sale is about $15,500, and on a $2.5 million sale about $35,000.

Sales package

Real estate agents have different ways of packaging their services, so you need to find out how your agent prices their offering. Some include the marketing/advertising costs in their commission rate, while others break these out separately.

If marketing is separate, it's on top of the commission. You'll usually pay the marketing costs you agreed to even if your home doesn't sell, unless you negotiate 'no sale, no fee'. The agent can't charge you more than the marketing actually cost.

Can you negotiate the real estate agent commission in Victoria?

Want to make sure you get the lowest possible rate? Then you need to be able to negotiate with agents on equal terms. The first step is to know the average commission rate in your suburb or postcode, so you know if they are competitive or not.

Also, do your homework on the agent’s performance and history in the local market. They need to have a track record of sales to match their rate. They should also have experience selling properties similar to yours and know the local market well.

What your sales authority must show

The sales authority is the agreement you sign with your agent. In Victoria it must do the following, or the agent can't claim commission:

• be in writing, signed by you, with a copy for you
• state the commission and marketing costs you agreed
• if the commission is a percentage, also show it as a dollar amount, worked out on a stated price
• say whether the agent expects any rebates on marketing (discounts or other benefits from suppliers), which must be passed on to you

It's also worth asking when the commission is payable. Consumer Affairs Victoria says most agents are paid after the sale: they deduct their commission from the deposit at settlement, the day ownership passes to the buyer.

If you think you've been overcharged, you can complain to Consumer Affairs Victoria. You have 28 days from receiving the agent's bill, or from being told the commission was taken from the deposit, whichever is later. You can also apply to the Victorian Civil and Administrative Tribunal (VCAT).

Use our Real Estate Commission Calculator to work out the average real estate commission where you are in Victoria.

Frequently asked questions