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The Complete Guide

Understanding Agent Commissions Could Save Your Thousands

Selling your home is a major financial decision. Understanding agent commissions can help you keep more of your money while choose the right agent.

Avg. National Rate2.0% - 2.5%
Potential SavingsUp to $15k
Negotiable?Yes, Always

Fixed vs. Percentage: Which is better?

Agents generally structure their fees in two ways. Understanding the difference is crucial to calculating your potential net return.

Percentage Commission

The most common structure. You pay a percentage of the final sale price. This incentivizes the agent to get the highest price possible.

Example: 2% on a $1M sale = $20,000 Fee

Fixed Fee

An agreed-upon flat rate regardless of the final sale price. Offers certainty for budgeting but may reduce the "incentive" factor for some agents.

Example: Agreed flat fee = $15,000 Fee

Tiered / Incentive Based

A lower base percentage, which increases if the property sells above a certain price target. Highly motivational for record-breaking results.

Our Recommendation: Best for driving the highest sales price.

Example: 1.8% base, +10% of anything over $1.2M

Average Rates by State

Average commission rates vary depending on your location, property value and local competition.
TAS2.5% - 3.0%
QLD2.4% - 2.8%
WA2.3% - 2.7%
VIC1.8% - 2.4%
NSW1.8% - 2.2%

*Rates are indicative averages. Urban areas typically have lower rates due to higher competition and property values.

Master the Negotiation

You have more power than you think. Use this checklist to negotiate like a pro
or let ListBetter do the heavy lifting for you.

1

Compare Multiple Proposals

Consider incentive-based commission structures that reward exceptional sale prices. Aligning the agent’s reward with your outcome can motivate stronger results.

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2

Ask What's Included

Does the fee cover marketing? Signage? Photography? Clarify if these are extra costs or included.

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3

Link Pay to Performance

Never settle for the first quote. Having 2-3 proposals gives you leverage and a clear market baseline.

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4

Don't Focus Solely on Price

A "cheap" agent who sells your home for $50k less actually costs you more than an expensive top performer.

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5

Check the Contract Period

Ensure the exclusivity period isn't too long (e.g., 60-90 days max) so you aren't stuck if they underperform.

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Compare agents
before you commit

The right agent can have a far greater impact on your final outcome than a small difference in commission. Compare proposals side by side and choose with confidence.

Compare Agents

Compare agents
before you commit

The right agent can have a far greater impact on your final outcome than a small difference in commission. Compare proposals side by side and choose with confidence.

Compare Agents

The Most Expensive Mistake Sellers Make

People assume the cheapest commission saves money.

Agent A
Agent B
Commission
1.5%
2.2%
Sale price
$900,000
$945,000
Net
$886,500
$924,210
Difference
+$37,710

What about
Marketing Costs?

Many agents are willing to tailor or negotiate their marketing package, particularly in competitive markets. Always ask what flexibility is available.

Standard Campaign

$2,000 - $4,000 (Photography, online listing, signboard)

Premium Campaign

$5,000 - $10,000+ (Video, premier online placement, print ads)

Pay on Success

Some agents cover marketing upfront and only charge if sold.
Ask about this option.