The provided market data does not indicate that conveyancing is cheaper when using a solicitor referred by an agent. Conveyancing fees are separate from real estate agency commissions, although some vendors may find administrative ease in using a recommended legal partner.
Choosing a solicitor often comes down to a preference for convenience versus independent oversight. While agents frequently recommend legal partners they trust, this does not automatically result in a lower fee for the vendor.
Conveyancing and hidden costs
Section 32 and Vendor Statement preparation is typically included in the conveyancing fee, but vendors must confirm this with their provider. Other essential costs include Owners Corporation certificates for applicable properties, which range from $100 to $300.
Agency commission structures
Commission is separate from legal fees and is fully negotiable under Victorian law (OpenAgent, WhichRealEstateAgent). In metropolitan Melbourne, average rates sit between 1.87% and 2.1% of the final sale price, with a broader range of 1.6% to 2.5% (OpenAgent, WhichRealEstateAgent).
Other settlement expenses
Beyond legal fees, vendors face several deductions at settlement. These include pro-rata adjustments for council rates, body corporate levies for strata properties, and any outstanding land tax which is deducted from the proceeds.
The performance incentive risk
Some vendors opt for tiered or performance-based commission structures to incentivise higher sale prices. However, these are viewed with caution by conveyancers and vendor advocates as they may be structured to benefit the agent more than the seller.
| Region | Average Commission Rate | Typical Range |
|---|---|---|
| Metropolitan Melbourne | 1.87%–2.1% | 1.6%–2.5% |
| Regional Victoria | N/A | 2.5%–3.5% |
| Victorian Average | 2.05%–2.1% | N/A |
(Source: OpenAgent, WhichRealEstateAgent)
Frequently asked questions
What is the average agent commission in Melbourne for 2026?
The average commission rate in metropolitan Melbourne is approximately 1.87% to 2.1% of the final sale price (OpenAgent, WhichRealEstateAgent). Rates can vary between 1.6% and 2.5% depending on the specific suburb and the agreement reached between the vendor and the agency.
Are real estate agent commissions capped in Victoria?
No, commissions are not capped or regulated by Victorian law and remain fully negotiable (OpenAgent, WhichRealEstateAgent). Agents are legally required to disclose that the commission is negotiable before a vendor signs the Sales Authority, and the amount must be stated as both a percentage and a dollar figure.
What costs are associated with a Section 32 statement?
While Section 32 preparation is often included in the overall conveyancing fee, vendors should verify this. Additionally, if the property is part of an Owners Corporation, a certificate is required for the Section 32, which typically costs between $100 and $300.
What other costs should I expect at settlement?
Vendors should account for pro-rata adjustments of council rates and body corporate levies. Furthermore, any outstanding land tax will be deducted from the sale proceeds at settlement, and those on fixed-rate loans may encounter loan break costs.
Questions to ask your agent
- Can you provide a breakdown of how your proposed commission compares to the current metropolitan average of 1.87%–2.1%?
- How will the advertised price guide specifically align with my reserve to ensure compliance with Victorian underquoting laws?
- What is the specific logic behind your recommended commission structure, and how does it protect my net proceeds?
This article contains general market information based on data current as at April 2026. It does not constitute financial, legal, or real estate advice specific to your property or circumstances. For an appraisal and tailored advice, speak with a Fletchers agent in your area.