Last Updated on February 6, 2026 by Andrew Mckiggan
Quick Summary: Agent Commissions
What is the typical rate in SA?
According to industry data from OpenAgent, commissions in SA fluctuate between 1.47% and 3.61%, with an average of around 2.35%.
How does Gawler East Real Estate compare?
We offer a principal-led service at a competitive rate of 1.5% (Inc GST).
Key Takeaway: Most agency quotes exclude GST. Always check the “Inclusive of GST” figure to understand the true cost.
How Real Estate Agent Commission Works in Australia
If you’re selling a home, one of the first questions you’ll ask is how real estate agent commission works — how much is paid, who receives it, and whether higher commission actually delivers better results.
This guide explains real estate agent commission in Australia in plain terms, including average commission rates, how commissions are structured, and what sellers should understand before signing an agency agreement.
What Is Real Estate Agent Commission?
Real estate agent commission is the fee paid to an agent for successfully selling a property. In Australia, this fee is most commonly calculated as a percentage of the final sale price, although fixed-fee models are also used in some markets.
Commission is only payable once a property sells. If the home does not sell, the agent does not receive commission.
What’s the Commission for a Real Estate Agent in Australia?
So, what’s the commission for a real estate agent in Australia?
There is no legislated “standard” commission rate — fees are negotiable and vary by location. However, data from major comparison sites provides a clear picture of the current market.
According to OpenAgent, real estate agent fees and commissions in South Australia typically fall between:
1.47% and 3.61% of the property value.
While many agencies quote fees “plus GST,” it is important to calculate the full figure to understand the real cost.
Note: Gawler East Real Estate operates differently. By running a streamlined, principal-led model, we are able to offer a competitive rate of 1.5% (Inc GST).
Average Real Estate Agent Commission Rates in South Australia
When shortlisting potential agents, one of the most important deciding factors is cost. There are generally two key costs to consider: marketing fees (advertising) and professional commission (the success fee).
Industry analysis by OpenAgent highlights that South Australia is an affordable market for investors and homebuyers compared to other states.
Their data indicates a state-wide average commission of around 2.35%.
Generally, fees cover advertising and marketing your property, while commission is a percentage of the sale price paid upon settlement. Higher-value properties often attract lower percentage rates, while regional properties often trend toward the higher end of the 1.47% – 3.61% range.
How Much Commission Do Real Estate Agents Make Per Sale?
A common question sellers ask is how much commission real estate agents make per sale.
To accurately compare costs, we must look at the full Inclusive of GST figure. Based on the typical industry benchmark of roughly 2.75% (once GST is added to standard rates), the gross commission looks like this:
| Sale Price | Typical Rate (Inc GST) | Total Cost to Seller |
|---|---|---|
| $600,000 | 2.75% | $16,500 |
| $800,000 | 2.75% | $22,000 |
| $1,000,000 | 2.75% | $27,500 |
These figures represent the gross commission. They are not what the agent personally takes home.
How Much Does a Real Estate Agent Make in Commission After Splits?
Many sellers are surprised to learn that real estate agent sales commission is divided.
Commission is commonly split between the selling agent and the agency (franchise fees), and may also account for marketing costs, administration, and support staff.
After all splits and expenses, individual agents in large franchises often receive around 30% to 40% of the gross commission. For example, on a $22,000 gross commission, the agent may only receive $6,600 to $8,800 in personal income.
How Much Commission Does a Real Estate Agent Earn Per Transaction?
Because real estate commission is performance-based, earnings vary significantly.
Some months may involve multiple completed transactions, while other months may involve none. This volatility is why commission is not the same as salary.
It also explains why independent, principal-led agents often provide better value. By removing the “Franchise Split,” they can offer a lower total rate (like 1.5% Inc GST) while maintaining full service standards.
Commission Paid to Real Estate Agents vs Seller Outcomes
For sellers, the more important question than commission percentage is whether the agent’s strategy and negotiation skill deliver a better final result.
Evidence across markets consistently shows that commission level alone does not determine outcome. Pricing strategy, buyer competition, and negotiation skill have a far greater influence on the final sale price.
In many cases, a skilled negotiator can recover their entire commission through price improvement alone.
Understanding how commission is calculated is only part of the decision. For a deeper breakdown of outcomes, risk, and seller protection, see our detailed guide on how agent fees translate into real value for sellers.
Is Higher Real Estate Agent Commission Always Better?
Higher commission does not automatically guarantee better marketing, stronger negotiation, or higher sale prices.
What matters more is how buyers are managed, how competition is created, and how offers are negotiated. Commission should be assessed alongside strategy and execution, not in isolation.
A Real-World Example of How Commission Structure Affects Outcomes
For sellers who want to see how commission structure, negotiation approach, and total costs can differ in practice, the following local example provides useful context.
View a real-world example showing how our 1.5% (Inc GST) model compares to standard industry rates.
This case study breaks down commission differences, marketing costs, negotiation outcomes, and total seller results in an actual transaction. It is provided for comparison purposes only, as individual outcomes vary depending on market conditions, pricing strategy, and buyer demand.
Key Takeaways for Sellers About Real Estate Agent Commission
Before choosing an agent, sellers should understand that commission is negotiable, average commission generally sits around 2.2% to 2.75% (Inc GST), and agents do not keep the full commission.
Negotiation skill often matters more than commission percentage alone, and the cheapest or most expensive option is not automatically the best choice.
Final Thoughts on Real Estate Agent Commission
Understanding how real estate agent commission works allows sellers to make informed decisions rather than emotional ones.
The smartest approach is to understand the commission structure, compare total costs, assess negotiation ability, and focus on the net outcome rather than the headline commission rate.
Commission structures and negotiation outcomes can vary by location, which is why reviewing broader Gawler SA property and real estate information can help sellers better understand how agent fees and results differ locally.
A well-structured campaign with strong negotiation can often outperform a higher-fee model while still delivering professional service.
