What Commission Do Real Estate Agents Make in Victoria
                     What 
Commission  Do 
Real Estate  
Agents Make in  
Victoria?
Figuring out the commission structure of your real estate agent and trying to 
understand the facts  and figures may blow up your mind. To help you carry out the 
process of selling a home smoothly, we  have jotted down the information in this 
blog.
Continue reading as this blog will give you a clear idea on how your real estate ag
ent in Cranbourne,  Hampton Park, or nearby suburbs are getting paid.
So, let’s get started!
Choosing a right real estate agent might be a tricky task
because today, there are a dozen of real estate agents in the property market.
Even though there is a pool of real estate agencies, every agency will not be the 
same. For home  sellers in Cranbourne, Hampton Park, or nearby suburbs, the 
process can seem massive.
But at the same time, you would want to know how these real estate agents 
are paid or what  commission do they get in Melbourne or Victoria.
Well, there is no hard and fast rule to it because different real estate agencies have 
different ways of  structuring their fees. This makes it difficult for a lot of people to 
get their heads around it such as  costs could be included here, separated there, 
rates might also differ depending on how the sale  goes, and so on. To keep you from 
going crazy over the numbers, we have done a quick overview of  real estate agent 
commissions, how they work, and how they can work for you (for both the buyers  
and sellers).
How Do Real Estate Agents Get Paid?
In Australia, real estate agents chiefly earn based on the 
commission. It  means they get a portion of the sale price of 
your home.
You will also find that an average level of commission is 
roughly two to  three percent in every state except 
Tasmania where the average  commission can go very high.
Almost every real estate agent will charge some form of the 
commission.  But you may have to pay other fees too. The 
cost of marketing campaign is  a frequent factor. This may be 
included in the commission or may even be  charged 
separately. But irrespective of how the costs are structured,  
remember the fees will be coming out of your pocket.
Great thing is while every home owner selling their house 
needs some  form of advertising, even those pursuing for 
sale by owner (FSBO), how  much of it you need might be an 
issue your agent will guide you on.
In order to visualize the scale for yourself, put up a property 
listing on  property websites such as domain.com.au or 
realestate.com.au. These are  priced at several hundred dollars 
while expanding your reach and visibility  stretches into the 
thousands quickly.
Other Ways Real Estate Agent 
Commissions Can Be  
Structured are as follows:
Higher commissions which include 
advertising  Advertising costs even if 
there is no sale
‘No sale, no fee’ 
guarantees  Flat fee 
structure
Scaling agent commissions, also called ‘Tiered 
Commissions’  For the most part, it is considered 
unwise to pay any upfront costs  because advertising is 
there for you to sell your house. Because of
advertising, you should pay only when you get a great 
sale price on your  home.
That is why ‘no sale, no fee’ clause in the real estate 
agreement is  considered one of the top things. Because they 
give great certainty in  allowing you to plan finances, flat fees 
etc., these can often look good at a  first glance. But they 
should also be rethought wherever possible.
Having an incentive tied to the sale of the house is a 
good idea because  higher the sale price, the more the real 
estate agents get paid.
In case your real estate agent is getting paid the same 
whether your home  sells for more or a little, they may push 
you to sell with the one that pays  more and move on.
Commission Levels in Victoria
Agent commissions in Victoria are on the more 
competitive end of the  scale. At some points it has also 
been the lowest in the country.
One such analysis has found that for early to mid-2017, 
average  commissions in the state were at 2.13%. If we 
compare this to South  Australia, the cheapest in Australia, 
where the average level of  commission was 2.07% and the 
highest average commission, Tasmania at  3.26%.
When it comes to commission, there is a marked difference 
between  metros and regional areas in Victoria. It has been 
seen that the difference  span from as low as 1.6% to as high 
as 4%.
In more competitive metro areas, higher property values 
with a high  demand. For instance, at the statewide average 
commission in Victoria  from above and the median sale 
price in Melbourne, a real estate agent  will earn $12,460.
Choosing the Right Real Estate Agent
With so many ways of structuring the agent’s commission, 
sorting out the  right real estate agent for yourself may again 
seem a difficult task.
So, let us see how to choose a right real estate agent for 
yourself.
The first and the foremost thing we would suggest is to go for 
a local real  estate agent or a local real estate agency. As per 
the research, around 75%  of people go with the local real 
estate agent or the very first agent they  talk to.
For such a big decision like selling a home in Hampton Park, 
or nearby  suburbs, it is unlikely that your real estate agent 
will be the best one. You  may have to negotiate, take a quick 
overview of the offerings, all to be  done simultaneously.
All this will make a great difference in tens of thousands of 
dollars late in  the future. But before finalizing a real estate 
agent, you must talk to  three-four real estate agents, 
compare their proposals.
Once you hire a real estate agent, they will contact you 
personally and tell  you the deal that best works in your 
interest. Everything will be brought  to you on the table and 
that is easy.
Breaking Down the Agent’s Fees
Whether it is in upfront costs, built into the commission, 
or the other  way round, all the costs of selling your 
house in Hampton Park or  Cranbourne etc., will come 
from you. Actions that will bring value to  your property, 
and property buyers to your attention are as follows:
Sale signs and open house 
signs  Property listings in print 
publications
Listings on property websites such as 
realestate.com.au,  domain.com.au
For few vendors, real estate agents may recommend an 
auction. While  the drama and excitement may be high, 
always remember that there are  further costs involved in 
this route. You might have to pay for marketing,  an 
auctioneer, and more staff on the day of auction.
For the private sellers who can skip all of this, the process 
might be an  easier process to manage especially if you 
have a skilled agent by your  side.
Conclusion
To get you the best deal, simply remember one rule and that is: 
Everything is  up for negotiation.
No matter which real estate agent you decide to work with, 
you can always  talk and negotiate about commissions, fees, 
timelines, exclusivity, and  everything that you might need.
For an authentic experience, contact the best real estate 
agent i.e., Carlton  Vaz serving in Hampton Park, Cranbourne, 
and nearby areas.
Call Jasmine Real Estate and get the work started!
Get In Touch
PO Box 137 Lynbrook Victoria
0425843786
[email protected]
Content Resource:
htt
ps://medium.com/@jasminerealestate1/what-commission-do-real-est
ate- 
 agents-make-in-victoria-d374f994debf