If you’re getting ready to sell a property in Victoria, chances are you’ve already discovered the long list of costs that typically come along with it. While some of these costs are necessary to sell your property for the highest price, there are ways to keep selling costs low and still see a fast and successful property sale.
We’ve compiled the average cost of real estate fees and commissions for real estate agents in Victoria to help you get the best bang for your buck.
Average real estate fees and commissions in Victoria
The real estate agent you choose and where you live in Victoria can make a big difference in how much you’ll need to pay in fees. There’s no standard fee structure for agents, and there can be significantly different inclusions depending on which agent you choose. It some cases, you will have to pay out extra for:
- Styling and photography
- Floor plan and marketing copy
- Online advertising through domain.com.au and realestate.com.au
- Signboard and flyers
- Real estate auction fees
When reviewing an offer to work with an agent, check what’s included in their standard fees, and look for an agent that’s transparent about how much it’ll cost to sell your house if you choose to work with them. You can use a 'cost of selling a house in Victoria' calculator to help you budget accordingly.
Here’s a general guide to real estate fees in Victoria so you know what to expect:
Real estate marketing fees in Victoria
Giving yourself the best chance of success at selling your home for a great price means making sure people know about it. Agents will usually put together a full marketing plan including professional photography, copywriting, an online listing, a floor plan, and a signboard outside your property.
In Melbourne, marketing fees can vary from around $500 to over $2000 for a 45-day campaign, depending on how much advertising you opt for. A top-tier listing that appears consistently at the top of searches could cost over $2000, while a standard tier could cost around $1500.
In regional areas of Victoria such as Geelong and Ballarat, marketing prices tend to be cheaper at around $300 to $1000.
Marketing costs varies quite a lot from one property to the next, but shouldn't exceed $10,000. Traditional real estate agents usually charge for marketing costs in addition to the commission. If you choose a flat fee agency like Upside, all marketing costs are included in the fixed fee.
Home staging fees in Victoria
Showcasing your home in its best light is key to securing the best price when you sell – and that’s where home staging comes in. Although typically not carried out by the real estate agency itself, many agents will be able to organise professional styling of your home to make sure it looks great for inspection days and marketing materials.
To have your home staged in Victoria, you can expect to pay between $2000 and $8000.
Auctioneer’s fees in Victoria
If you’re selling your property by auction, you’ll need to employ the services of a professional auctioneer for the day. Like home staging, real estate agents can usually organise a professional to carry out the auction.
Costs for an auctioneer in Victoria range from around $400 up to $1000.
Average real estate commissions in Victoria
A real estate commission is a percentage of the final sale price that goes to your agent after your home sells. This may be paid in addition to a flat fee that’s agreed upon before your property goes to market and is payable regardless of whether or not your home sells. At Upside, we never charge commission fees (but more on that later!)
If you live in Melbourne, a typical agency commission rate is between 1.6% and 2.5%. In regional areas, you can expect to pay between 2.5% and 3.5% due to property prices being lower on average.
If you really want to cut down on costs, you can choose to manage the entire listing and sales process yourself without employing an agent’s services. Alternatively, there are also fixed-fee agencies (like Upside) that charge an all-inclusive flat fee that stays the same no matter how much the property sells for. If you are considering an auction, we simply pass on the auctioneer cost ($400-700 depending on location and auctioneer) which is payable at settlement. Many vendors find this option to be the most cost-effective and hassle-free option in the long run.
How do fees and commissions in Victoria compare to the rest of Australia?
The cost of selling a home can be very different depending on the area you live in. Typically, real estate commissions in rural areas tend to be higher than in major cities due to the scarcity of housing in more remote regions.
There are also some significant differences in average real estate commissions, fees, and other home-selling costs in each state. For example, real estate commissions in Tasmania are some of the highest in the country at an average of 2.96% while marketing/listing fees are relatively low at between $400 and $800. On the other hand, average real estate commissions in Victoria are relatively low at 2.05% while marketing/listing fees are comparably high at between $500 and $2000.
To give you a general idea of how Victoria shapes up to the rest of Australia, we’ve created a chart comparing the cost of selling a home in each Australian state.
|State||Real estate commission||Marketing fees||Lender's fees||Staging fees|
|VIC||2.05%||$500 - $2000||$100 - $1500||$2000 - $8000 depending on the duration and size of the property|
|NSW||2.46%||$600 - $2000||$150 - $1500||$2000 - $8000 depending on the duration and size of the property|
|QLD||2.8%||$600 - $2000||$150 - $1500||$2000 - $8000 depending on the duration and size of the property|
|WA||2.66%||$400 - $1000||$150 - $1500||$2000 - $8000 depending on the duration and size of the property|
|ACT||2.18%||$100 - $800||$150 - $1500||$2000 - $8000 depending on the duration and size of the property|
|SA||2.35%||$500 - $1000||$150 - $1500||$2000 - $8000 depending on the duration and size of the property|
|TAS||2.96%||$400 - $800||$150 - $1500||$2000 - $8000 depending on the duration and size of the property|
|Which Real Estate Agent|
How to reduce the cost of selling a house in Victoria
Whether you’re Victoria or anywhere else, there are some unavoidable selling costs you’ll need to pay to get your property in front of prospective buyers. Today, online marketing and signage are a must-have for selling your property at the highest price, so it’s worth the investment to choose a real estate with the right expertise.
However, there are some steps you can take to help keep selling costs low and maximise how much of your property’s sale price goes in your pocket: Shop around: Assess average commission rates and fees for your area and do your homework to find a real estate with local expertise as well as a reasonable fee structure. Negotiate fees and commission: Many real estate agents are comfortable with and even expect sellers to negotiate their commission rate and fees. Don’t be afraid to ask upfront whether an agent will consider reducing their commission if a competing agent is offering a lower rate. Consider a tiered commission rate: If you plan on going with a real estate agent that charges a commission, look for a tiered commission rate. This means you only pay a higher percentage if your property reaches a certain sale price threshold. Choose a fixed fee agent: Ultimately, the best way to sell your property on a budget and avoid a commission altogether is to choose an agent that charges a flat fee which includes all the services you need to sell your home:
- Agent managed viewings and open homes
- Property appraisal
- Buyer call-backs and negotiation
- Photography, copywriting and floorplan
- Large photo signboard, flyers and drop cards
- Advertising on Realestate.com.au and Domain
- Online sale progress & customer service
Here at Upside, we never charge commission or hidden fees – so you know what you can expect to pay right from the start. We charge a fixed-fee, no matter how much you sell for, which includes all the essentials you need to sell your home.
If you’re thinking about selling your property, see why Upside has some of the most highly rated real estate agents in Victoria. Start your journey today with a free property appraisal.