While agents do not typically provide “rebates” on their own commission, Victorian law requires agents to pass any advertising rebates or discounts received from portals back to the vendor. Commission rates themselves are fully negotiable, with metropolitan Melbourne averages currently sitting between 1.87% and 2.1% (OpenAgent, WhichRealEstateAgent).
Vendor confidence improved through late 2025, but RBA rate hikes in February and March 2026 have introduced new caution among buyers (Domain’s Dr Nicola Powell). This shift has dampened buyer urgency, making the transparency of selling costs and commission structures a priority for homeowners.
Negotiating commission rates
Commissions in Victoria are not capped or regulated by law and remain fully negotiable. In metropolitan Melbourne, rates generally range from 1.6% to 2.5%, though the average is approximately 1.87%–2.1% (OpenAgent, WhichRealEstateAgent). Agents must disclose the commission as negotiable and state the amount as both a percentage and a dollar figure in the Sales Authority.
Mandatory advertising rebates
Vendor-paid advertising (VPA) is separate from the agent’s commission. By law, any rebates or discounts an agent receives from portals, such as realestate.com.au or domain.com.au, must be passed on to the vendor. These costs must be itemised in the Sales Authority to ensure full transparency.
Regional versus metropolitan costs
Selling costs vary significantly based on geography. While inner-city areas like Fitzroy often see rates between 1.7% and 1.9%, regional Victoria rates are higher, typically ranging from 2.5% to 3.5% (OpenAgent, WhichRealEstateAgent). This disparity reflects the different operational costs and market dynamics in regional corridors compared to the eastern suburbs.
The buyer urgency gap
There is a current tension between listing volumes and buyer appetite. Listings rose nearly 40% since December 2025 (Raine & Horne), but the recent RBA rate hikes have slowed the pace of decision-making (Domain’s Dr Nicola Powell). This creates a risk where properties may sit on the market longer despite high initial appraisal figures.
| Location/Category | Average Commission Rate |
|---|---|
| Metropolitan Melbourne Average | 1.87%–2.1% (OpenAgent, WhichRealEstateAgent) |
| Melbourne Range | 1.6%–2.5% (OpenAgent, WhichRealEstateAgent) |
| Inner City (e.g. Fitzroy) | 1.7%–1.9% (OpenAgent, WhichRealEstateAgent) |
| Regional Victoria | 2.5%–3.5% (OpenAgent, WhichRealEstateAgent) |
| Victorian Average | 2.05%–2.1% (OpenAgent, WhichRealEstateAgent) |
Frequently asked questions
Are real estate commission rates fixed in Victoria?
No, commission rates are not capped or regulated by Victorian law and are fully negotiable between the vendor and the agent. Agents are legally required to disclose that the commission is negotiable before a vendor signs the Sales Authority, stating it as both a percentage and a dollar amount.
What are the standard advertising costs for a Melbourne home?
A standard campaign typically costs between $6,500 and $8,000, covering professional photography, signboard, and portal listings. Premium packages, which include 3D tours and drone photography, range from $8,000 to $12,000. All these costs must be itemised in the Sales Authority for the vendor.
Do agents keep discounts they get from real estate portals?
No. Under Victorian regulations, agents must pass on any advertising rebates or discounts they receive from portals to the vendor. This ensures that the vendor benefits from any bulk-buying power or corporate agreements the agency has with sites like Domain or realestate.com.au.
How have recent interest rate changes affected selling conditions?
RBA rate hikes in February and March 2026 have dampened buyer urgency and introduced a layer of caution into the market (Domain’s Dr Nicola Powell). While open for inspection attendances were up 3% year-on-year in early 2026 (Raine & Horne), buyers are now more hesitant.
Questions to ask your agent
- How did you arrive at your price estimate for my property?
- What does the marketing package include and what are all additional costs?
- Who is the primary contact throughout the campaign—you or an assistant?
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.