Ways to sell a home and pay for it compared
Percentage, tiered and flat-fee commission, private sale, auction and vendor-paid advertising compared on how they work and what to watch.
Selling costs depend less on which agency you pick than on how you agree to pay. The table compares the common commission structures and selling methods used in Australia. It compares the way each option works, not particular agencies or prices. Commission in every state is negotiable and is normally quoted plus GST. Use the selling costs calculator to put your own numbers to each option.
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| Option | How it works | Good for | Watch out for |
|---|---|---|---|
| Percentage commission | Agent is paid a set percentage of the sale price, plus GST, usually on settlement | Simple sales where you want the agent rewarded for a higher price | Each extra $10,000 of price earns the agent only a few hundred dollars, so the incentive to hold out for more is small |
| Tiered or incentive commission | A base rate up to a target price and a higher rate on the amount above it | Sellers who want to reward the agent for beating a realistic target | A target set too low pays the higher rate on money you would have received anyway |
| Flat fee | A fixed dollar fee whatever the price, sometimes with a bonus above a target | Higher-value homes where a percentage would produce a large fee | Check what is included; some flat fees exclude auctioneer, open homes or negotiation |
| Fixed-fee or online agency | A lower fixed fee, often part paid upfront, with fewer services from the agent | Sellers in strong markets willing to do some of the work themselves | Upfront fees may be payable even if the home does not sell |
| Private sale without an agent | You market the home, show buyers and negotiate yourself, with a conveyancer handling the contract | Sales to a known buyer, or sellers with time and confidence | You still pay for advertising, contract preparation and disclosure documents; pricing errors can cost more than commission |
| Auction | Public bidding on a set date after a marketing campaign; no cooling-off for the buyer in most states | Homes with strong demand where competition may lift the price | Auctioneer fees and a larger marketing campaign are often extra; a pass-in leads to negotiation anyway |
| Private treaty with a price guide | Home is listed with an asking price or range and sold by negotiation | Most homes, especially in regional areas or slower markets | Buyers in most states have a cooling-off period, so a signed contract can still fall through |
| Vendor-paid advertising | You pay the portal, print, photography and signboard costs for a campaign, separate from commission | Campaigns where you want control over spend and want to see each invoice | It is payable whether or not the home sells, unless the agreement says otherwise |
Commission rates and marketing costs are not set by law in any state. Each state's real estate agents law requires the agency agreement to state the commission and expenses, and the agent cannot charge more than the agreement allows. Check the rules with NSW Fair Trading, Consumer Affairs Victoria, the Queensland Office of Fair Trading, Consumer Protection WA, Consumer and Business Services (SA), CBOS Tasmania, Access Canberra and NT Consumer Affairs. Cooling-off rules for buyers also differ by state: see underquoting, price guides and cooling-off.