Fixed fee and commission are two primary ways real estate agents are compensated for selling a property. A fixed fee is a set amount agreed upon upfront, while commission is a percentage of the final sale price.
As of December 2025, commission remains the more prevalent model currently in Melbourne, particularly in the Eastern Suburbs where Fletchers operates. Typically, commission rates range from 1.5% to 2.5% of the sale price, with the exact percentage negotiated between the vendor and the agency. This percentage covers the agent’s services, including marketing (typically $3,000 – $8,000 for a full campaign), administration, and sales expertise. Fixed fees are becoming more common, often appealing for properties where a quick sale is prioritised, or in slower market conditions. In 2026, we anticipate seeing more vendors exploring fixed fee options, however, the comprehensive service and market reach offered by a commission-based agency often delivers a stronger result in the competitive Melbourne market. It’s important to realise that even with a fixed fee, costs like marketing and photography are usually additional. Preparation costs, such as styling ($2,000 – $8,000) and painting ($400 – $800 per room), are also borne by the seller. Fletchers’ ‘The Fletchers Way’ emphasises a tailored approach, discussing both options to favour the best outcome for each individual property.
Ultimately, the choice between fixed fee and commission depends on your individual circumstances and desired level of service.