Real estate agent commission in NSW: typical rates, Sydney versus regional, and the agency agreement rules

New South Wales agents set their own commission. There is no government rate, no "standard" rate and no cap, and the rate must be written into a compliant agency agreement before the agent can claim it. This guide gives the typical ranges published by third parties, explains why Sydney rates run lower than the rest of the state, and sets out the consumer protections in the Property and Stock Agents Act 2002.

Typical commission ranges in NSW

| Source and date | Figure | |---|---| | Which Real Estate Agent, NSW fees and commissions, 2026 | Sydney average about 2.1%; regional NSW 2.5% to 3.5% | | OpenAgent, Sydney, 2026 | Sydney average about 1.65% | | PropertyNow, 2026 | NSW typical range 1.8% to 2.5% | | Peakifi, 2026 | NSW range 1.5% to 2.5% | | ProperEasy, 2026 | Metro Sydney and Melbourne usually 1.5% to 2.2% |

The spread between sources is wide: 1.65 per cent and 2.1 per cent for "average Sydney" cannot both be right in the same sense, and the difference probably comes down to which agents and which suburbs each business samples. Treat the range of 1.5 to 2.5 per cent as the realistic band for Sydney and 2.5 to 3.5 per cent for regional NSW, and get your own quotes.

On a $1.4 million Sydney house, 1.8 per cent is $25,200 before GST, or $27,720 including GST. On a $700,000 house in Dubbo, 2.8 per cent is $19,600 before GST.

Why Sydney rates are lower

Sydney's median house price is the highest in the country, so a smaller percentage still produces a large dollar fee. Inner and middle-ring suburbs also have dozens of competing agents, and competition pushes rates toward the floor. In regional NSW the opposite applies: lower prices, fewer agents and more travel per listing. A 3 per cent rate in a regional town is not a sign of a greedy agent; it is roughly what it costs to run a campaign there.

Within Sydney, rates fall as price rises. Prestige agents in the eastern suburbs, lower north shore and northern beaches commonly quote well under 2 per cent on homes above $3 million, often with a tiered structure.

GST

Commission attracts 10 per cent GST. NSW agency agreements must state the commission clearly; if an agent quotes "2 per cent" ask whether that is inclusive. A rate quoted ex GST is 10 per cent more expensive than it looks.

The agency agreement rules in NSW

The Property and Stock Agents Act 2002 and its 2022 Regulation set the terms every residential agency agreement must contain. The protections that matter most for commission are set out on the NSW Government's agency agreements page:

• No agreement, no commission. An agent cannot recover commission or expenses unless there is a written agreement that complies with the Act (s 55). A court or tribunal can allow recovery in limited cases under s 55A, but the default is strict.
• Copy within 48 hours. The agent must serve a signed copy on you within 48 hours of your signing. Miss that and the agent loses the entitlement to commission.
• Cooling-off period. For residential property or rural land you have a cooling-off period of one day (a business day or Saturday) after signing. You can cancel by written notice during that period. You can waive it, but only after receiving the unsigned agreement and the approved consumer guide at least one business day beforehand and signing the Fair Trading waiver form.
• Rebates must be disclosed. The agreement must identify the source and estimated amount of all rebates, discounts and commissions the agent will receive on expenses you pay, such as advertising packages. If they are not disclosed, the agent cannot recover those expenses from you.
• Estimated selling price. The agreement must state the agent's estimate of the likely selling price, and the agent must have reasonable grounds for it. NSW has had underquoting rules since 2016 that tie the advertised guide to the agreement estimate.

Agency types are exclusive (the agent is paid on any sale during the term, including one you arrange yourself), sole (you can sell privately without commission) and open (only the agent who is the effective cause of sale is paid). The Regulation's schedules prescribe the terms for each type.

Marketing and other costs

Marketing in Sydney commonly runs from about $4,500 to $10,000 for a full campaign according to Hunter Galloway's 2026 estimate, and more for prestige homes using print and video. These are separate from commission and must be itemised in the agreement. Auctioneer's fees, conveyancing and mortgage discharge are covered in our selling costs guide.

How to negotiate in NSW

1. Obtain three written proposals with the commission, GST treatment, marketing and term all stated.
2. Ask each agent for their last five sales in the suburb with the initial guide and the result. The agent whose results support their appraisal is worth a higher rate.
3. Keep the exclusive term to the length of the campaign, usually 60 to 90 days. The agreement can be extended by agreement if needed.
4. If you accept a tiered structure, set the base at the appraised price with evidence, not below it.
5. Use the cooling-off day. Read the agreement at home, not at the kitchen table with the agent waiting.

Compare agents near you

Our NSW suburb pages rank agents by sales in the suburb, days on market, price achieved and verified reviews. The ranking has no commercial inputs and commission is not one of them. Partner agents, labelled "Partner: pays a referral fee on settlement", pay us a share of their commission if you sell through them; they cannot pass it on to you and it does not change their rank.

Frequently asked questions

What is the average real estate commission in Sydney?+

Published 2026 estimates range from about 1.65 to 2.1 per cent depending on the source. These are third-party averages, not our data. Realistic quotes for most Sydney homes fall between 1.5 and 2.5 per cent.

Why is commission higher in regional NSW?+

Lower sale prices and fewer transactions mean agents need a higher percentage to earn a workable fee per sale. Published ranges for regional NSW sit around 2.5 to 3.5 per cent.

Is there a cooling-off period on an agency agreement in NSW?+

Yes. For residential property you have one business day (or Saturday) after signing to cancel by written notice, unless you have waived it in the prescribed way.

What happens if the agent does not give me a copy of the agreement?+

If a signed copy is not served on you within 48 hours, the agent loses the entitlement to commission and expenses under the agreement, subject to a court's discretion under s 55A.

Must the agent tell me about advertising rebates?+

Yes. The agreement must state the source and estimated amount of any rebate, discount or commission the agent receives on expenses you pay. Undisclosed rebates mean the agent cannot recover those expenses.