What Percentage Do Real Estate Agents Make in 2024? A Breakdown Across Australia

Real estate agents play a crucial role in facilitating property transactions across Australia. Their commissions are typically a percentage of the sale price, and understanding these rates is essential for both buyers and sellers. In this short guide, we'll delve into the average commission rates for real estate agents across major cities and states in Australia, exploring the factors that influence these rates, who pays the commissions, and how much agents can make.

Sydney

In Sydney, the average real estate sales commission is around 1.8%. This rate can vary depending on the location, with agents in the CBD charging 2.48% and those in the suburbs typically charging under 2%. The high property values in Sydney lead to big numbers for real estate agents, even with lower commission rates. For example, an agent earning 1.8% on a $1 million sale would receive $18,000.

Melbourne

In Melbourne, the average real estate sales commission is around 2.13%. This rate can also vary depending on the location, with agents in the CBD charging slightly higher rates than those in the suburbs. For example, an agent earning 2.07% on a $1 million sale would receive $20,700⁶.

Brisbane

In Brisbane, the average real estate sales commission is around 2.53%. This rate can vary depending on the location, with agents in the CBD charging slightly higher rates than those in the suburbs. For example, an agent earning 2.53% on a $500,000 sale would receive $12,650⁹.

Perth

In Perth, the average real estate sales commission is around 2.45%. This rate can vary depending on the location, with agents in the CBD charging slightly higher rates than those in the suburbs. For example, an agent earning 2.45% on a $500,000 sale would receive $12,250⁴.

Adelaide

In Adelaide, the average real estate sales commission is around 2.07%. This rate can vary depending on the location, with agents in the CBD charging slightly higher rates than those in the suburbs. For example, an agent earning 2.07% on a $500,000 sale would receive $10,350².

Factors Influencing Commission Rates

Commission rates can vary significantly across different locations and states in Australia. Several factors contribute to these differences:

1. Location: Agents in major cities like Sydney and Melbourne tend to charge higher commission rates than those in smaller cities and rural areas.
2. Property Value: Agents typically earn a higher commission on higher-value properties^‍.
3. Market Conditions: Agents may adjust their commission rates based on market conditions, such as the level of competition and the number of listings^‍.
4. Agent Experience: More experienced agents may charge higher commission rates due to their reputation and track record^‍.

Who Pays the Commissions?

In Australia, the seller typically pays the real estate agent's commission. This is because the agent is working on behalf of the seller to find a buyer and facilitate the sale‍.

>> 11 expert tips to reduce how much commission you pay

Can You Negotiate Commission Rates?

Yes, commission rates are negotiable in Australia. Sellers can negotiate with agents to secure a better rate, especially if they have multiple offers or if the agent is new to the area‍.

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How Much Do Agents Make?

Real estate agents in Australia can earn a significant income, with their earnings dependent on factors such as their commission rate, the number of listings they have, and their level of experience. On average, agents in Australia can earn between $50,000 and $100,000 per year‍.

How Can Minty Help?

At Minty, we understand the importance of finding the right real estate agent for your needs. That's why we offer a free service that connects you with top-performing agents across Australia at just a 1.5% commission, saving you thousands of dollars on commission fees. With Minty, you can rest assured that you're getting the best possible service at a competitive price. Contact us today to learn more about how Minty can help you achieve your real estate goals.