Reference guide
Real Estate Fee Comparison Guide
Two agents quote you a percentage. It looks like a like-for-like comparison, and it usually is not — because the number that matters is the total cost on your property, including GST and every marketing item, and because what sits inside the commission varies between agencies.
The short answer
Compare agent fees on total cost and inclusions, never on the headline percentage alone. A fee has three parts: the commission, GST, and the marketing budget. Two agents quoting the same commission can differ by thousands of dollars once GST treatment and marketing mark-ups are taken into account.
The three parts of a real estate fee
A commission is a percentage of your final sale price, agreed in advance and set out in a written authority. GST is added to that commission at the rate set by law, unless the quoted figure already includes it. Marketing is a set of supplier costs — photography, floorplan, signboard, advertising — which are either passed on at cost or charged with a margin on top.
Almost every confusing fee comparison comes from one of two places: whether the quoted percentage includes GST, and whether the marketing is charged at cost. Ask both questions explicitly and most of the ambiguity disappears.
What to check, component by component
| Component | How it is usually charged | What to check |
|---|---|---|
| Commission | A percentage of the final sale price | Whether it is negotiable, and what the rate depends on for your property |
| GST | 10%, added to the commission | Whether the quoted percentage is inclusive or exclusive of GST |
| Professional photography | Separate campaign item | At cost, or with a margin added |
| Floorplan | Separate campaign item | Whether one is provided at all, and at what cost |
| Signboard | Separate campaign item | Manufacture, installation and removal — ask whether all three are included |
| Portal and digital advertising | Separate campaign item | The actual spend, and whether it is passed on at cost |
| Auctioneer and auction-day costs | Separate, only where an auction is used | Whether they are quoted before you commit to an auction |
| Styling | Separate and optional | Whether it is recommended, and what it costs |
| Minimum fee | Applies to some agencies | Whether one exists, and whether it affects your price point |
| Term and termination | Set in the authority | The length of the term, and what happens if you want to end it |
Worked comparison on a $900,000 sale
Our own fee, broken into its parts so you can see the structure you are comparing against.
- Sale price
- $900,000
- Commission at our 1% starting rate
- $9,000
- GST at 10%
- $900
- Total fee
- $9,900
- Effective cost as a percentage of the sale price
- 1.10%
- Marketing and campaign costs
- Charged separately, at cost
An illustration, not a quote. Our starting rate is 1% plus GST and is not available on every engagement; the rate for your property is confirmed in writing.
The same sale price at different rates
Because every percentage commission is calculated on the sale price, the rate is the only variable.
| Commission rate | Commission | Plus GST | Total fee | Effective |
|---|---|---|---|---|
| 1% (our starting rate) | $9,000 | $900 | $9,900 | 1.10% |
| 1.5% | $13,500 | $1,350 | $14,850 | 1.65% |
| 2% | $18,000 | $1,800 | $19,800 | 2.20% |
| 2.5% | $22,500 | $2,250 | $24,750 | 2.75% |
| 3% | $27,000 | $2,700 | $29,700 | 3.30% |
Illustrations only. Rates other than ours are common market rates shown for comparison and are not a quote from any specific agency.
A checklist for comparing two written quotes
- 1.Put both quotes side by side and check whether each percentage is inclusive or exclusive of GST.
- 2.Add the full marketing budget to each. A lower commission with a marked-up campaign can cost more overall.
- 3.Check what each commission includes — strategy, coordination, buyer matching, negotiation, reporting.
- 4.Confirm whether a minimum fee applies, and whether it affects your price point.
- 5.Compare the term of each authority, and what happens if you want to end it early.
- 6.Then compare the thing the fee is actually a percentage of: each agent's recent results on comparable homes.
What this guide does not do
It does not rank agencies, and it does not state what any other agency charges. Commission rates are not fixed by law in Victoria and vary between agencies and properties, so any specific figure quoted as 'the market rate' should be treated with suspicion.
What it does is give you the structure and the arithmetic, so that when two agents quote you a percentage you can work out what each one actually costs on your sale price — and what you are getting for it.
Sources and references
- William Whyte Property — Real Estate Agent Fees (williamwhyte.com.au/real-estate-agent-fees), the published fee position used throughout this article.
- Estate Agents Act 1980 (Vic) — a vendor must sign a written authority before an estate agent can act for them.
- Consumer Affairs Victoria — guidance for Victorian consumers on appointing and working with a real estate agent.
Real Estate Fee Comparison Guide — frequently asked questions
Is a lower commission always better value?
No. The commission is a percentage of a price you have not achieved yet, so a rate that is one per cent lower saves a few thousand dollars while a sale price a few per cent lower costs tens of thousands. Judge the fee alongside the agent's local results.
Should I compare fees including or excluding GST?
Compare on the same basis. Either convert both to inclusive-of-GST totals, or confirm both are quoted the same way. Mixing the two is the single most common mistake in comparing agent fees.
What is a reasonable marketing budget?
It depends on the campaign, which is why we would rather itemise it than quote a figure. What matters is that each item is disclosed, charged at cost or clearly marked up, and approved by you before it is spent.
Can I negotiate an agent's commission?
Yes — commission rates are not fixed by law in Victoria and are set by agreement. What is fixed is the requirement that the fee and the terms are recorded in a written authority you sign before the agent acts for you.
Cite this guide
William Whyte Property, Real Estate Fee Comparison Guide, updated 22 September 2026, williamwhyte.com.au/guides/real-estate-fee-comparison-guide
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Start with a free appraisal, and we will set out the commission, the GST treatment and the itemised campaign costs for your property — in writing, so you can compare it properly.
William Whyte Property · 261 Thomas Street, Dandenong VIC 3175