Real estate agent commission in Victoria: typical rates, the authority and the rules that protect vendors

Victorian agents charge what they negotiate. No government body sets a commission rate, and the Estate Agents Act 1980 requires the agent to tell you, before you sign, that commission and expenses are negotiable. Victoria also has the country's most detailed rules on what the authority must contain, on rebates, and on who may share in the commission. This guide covers typical ranges, the authority, and the rules that changed in October 2026.

Typical commission ranges in Victoria

| Source and date | Figure | |---|---| | Which Real Estate Agent, Victoria, 2026 | Melbourne 1.6% to 2.5%; regional Victoria 2.5% to 3.5%; state average about 2.1% | | OpenAgent, Melbourne, 2026 | Melbourne region average about 1.78% | | LocalAgentFinder, Melbourne fees (data from 2022) | Metropolitan Melbourne about 1.98% | | Metropole suburb examples, 2026 | Williamstown about 1.82%; Hoppers Crossing about 2.51% |

The pattern is the same as in the other states: inner and middle Melbourne at the lower end, outer growth corridors a little higher, and regional Victoria higher again. The Metropole suburb examples show a near 0.7 point difference between a bayside suburb and an outer western one, which reflects price more than anything else.

On a $1.1 million Melbourne house, 1.8 per cent is $19,800 before GST, or $21,780 with GST. On a $600,000 house in Ballarat, 2.75 per cent is $16,500 before GST.

What a Victorian sales authority must contain

Consumer Affairs Victoria's guidance on authorities, rebates and commission sets out the mandatory contents. An authority that is missing any of them can cost the agent the commission:

• Commission and expenses stated as a dollar figure or a percentage; if a percentage, a dollar example must be given.
• The agent's estimated selling price, either a single figure or a range no wider than 10 per cent.
• A rebate statement in one of two approved forms, saying whether the agent will receive rebates or discounts on advertising or other outgoings. It is illegal for an agent to keep a rebate, monetary or otherwise; any rebate must be passed to you in full, and non-monetary rebates must be paid out as their dollar equivalent.
• The approved complaints statement telling you where to complain about commission or outgoings.
• The end date for a sole or exclusive authority: unless you agree otherwise, 30 days after an auction or 60 days after signing for a private sale.

Before you sign, the agent must tell you that commission and expenses are negotiable. There is no statutory cooling-off period on a Victorian sales authority, which is one reason to take it home and read it.

Commission sharing must be disclosed before you sign

Victoria is the one state that expressly regulates agents sharing their commission with people outside their agency. Under section 48 of the Estate Agents Act 1980, an agent who will share the commission with anyone other than an estate agent or agent's representative in their own agency must give you a commission sharing notice, in the wording approved by Consumer Affairs Victoria, before you sign the authority. If the notice is not given, the agent must not make the payment.

This affects you directly if you found your agent through a referral service, including this one. A partner agent on our site who takes a lead from Victoria must give you the commission sharing notice naming Great Real Estate Agents before you sign, and our system will not release your contact details to the agent until they have acknowledged that obligation. The fee comes out of the agent's commission; it is not added to what you pay, and it has no effect on where the agent ranks.

Underquoting and the 2026 price rules

Victoria's underquoting laws require agents to base their estimate on the three most comparable recent sales (within two kilometres and six months for metropolitan Melbourne) and to give buyers a written statement of those sales and the suburb median (Consumer Affairs Victoria). From 1 October 2026 a new Property Price Statement replaces the Statement of Information, and for auctions and fixed-date sales on or after 16 October 2026 the reserve price must be published at least seven days before the auction or the sale cannot proceed (Consumer Affairs Victoria, new changes to property sales and underquoting laws).

For vendors this means the number in your authority is not a private matter between you and the agent. It anchors what can be advertised, and in an auction campaign it now sets a public reserve a week out. Pick an agent whose estimate is grounded in comparables rather than the one who quotes highest.

Marketing and auction costs

Melbourne campaigns commonly cost between about $6,500 and $8,000 in marketing according to Hunter Galloway's 2026 estimate, with auctioneer's fees on top. Victoria has a higher share of auctions than any other state outside Sydney, and auction campaigns are typically four weeks of advertising rather than an open-ended private sale. Our auction versus private treaty guide weighs the two.

How to negotiate in Victoria

1. Get three written proposals with commission (with GST), marketing, estimated selling price and the authority end date stated.
2. Ask each agent for the three comparable sales behind their estimate. If they cannot name them, the estimate is a pitch.
3. Compare the total cost of commission plus marketing, not the rate alone.
4. Keep the exclusive period to the campaign length. The statutory default of 60 days for a private sale is a sensible starting point.
5. Ask whether the agent shares commission with anyone. If they do, you are entitled to the notice before you sign.

Compare agents near you

Our Victorian suburb pages rank agents on sales in the suburb, days on market, price achieved and verified reviews. Commission is not a ranking input. Partner agents carry the label "Partner: pays a referral fee on settlement" and must give Victorian vendors the commission sharing notice before an authority is signed.

Frequently asked questions

What is a typical commission in Melbourne?+

Published 2026 estimates range from about 1.6 to 2.5 per cent, with averages between 1.78 and 2.1 per cent depending on the source. These are third-party figures, not our data.

Is there a cooling-off period on a Victorian sales authority?+

No statutory cooling-off period applies to the authority itself. Read it before you sign. A buyer's cooling-off period applies to the contract of sale, not to your agreement with the agent.

Can my agent keep advertising rebates?+

No. It is illegal in Victoria for an agent to keep a rebate. The authority must include a rebate statement and any rebate must be passed to you in full.

What is a commission sharing notice?+

A notice, in Consumer Affairs Victoria's approved wording, that the agent must give you before you sign if they will share commission with anyone outside their agency, including a referral service such as this one. Without it the agent must not make the payment.

How long does a sole or exclusive authority run?+

Unless you agree otherwise, it ends 30 days after an auction or 60 days after signing for a private sale.