Yes, agent commissions vary across Melbourne and regional Victoria. Metropolitan Melbourne averages between 1.87% and 2.1%, with a broader range of 1.6% to 2.5%, while regional Victoria rates are higher at 2.5% to 3.5% (OpenAgent, WhichRealEstateAgent).
Commission rates in Victoria are not capped or regulated by law, meaning they are fully negotiable between the vendor and the agent. While averages provide a baseline, the final figure is determined by the specific agreement signed in the Sales Authority.
Metropolitan vs regional rates
There is a distinct difference between city and country rates. Metropolitan Melbourne generally ranges from 1.6% to 2.5% (OpenAgent, WhichRealEstateAgent), whereas regional Victoria typically sees higher rates between 2.5% and 3.5% (OpenAgent, WhichRealEstateAgent).
Inner-city variations
Specific pockets of the city often deviate from the metropolitan average of 1.87%–2.1% (OpenAgent, WhichRealEstateAgent). For example, inner-city areas such as Fitzroy frequently see commission rates between 1.7% and 1.9% (OpenAgent, WhichRealEstateAgent).
Legal requirements for disclosure
Victorian law requires agents to disclose that commission is negotiable before a vendor signs the Sales Authority. To ensure transparency, the final commission must be explicitly stated in the document as both a percentage and an equivalent dollar amount.
The negotiation gap
The lack of regulatory caps creates a wide spread in what vendors are quoted. Because rates are fully negotiable, the difference between a 1.6% and a 2.5% fee on a high-value property is substantial, yet both fall within the standard metropolitan range.
| Region | Commission Rate / Range |
|---|---|
| Metropolitan Melbourne Average | 1.87%–2.1% (OpenAgent, WhichRealEstateAgent) |
| Metropolitan 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 commissions fixed in Victoria?
No, commissions are not capped or regulated by Victorian law and are fully negotiable. Agents must disclose this negotiability before a vendor signs the Sales Authority, and the final agreed fee must be listed as both a percentage and a dollar amount in the contract.
How does Melbourne commission compare to regional Victoria?
Metropolitan Melbourne averages between 1.87% and 2.1%, with a general range of 1.6% to 2.5% (OpenAgent, WhichRealEstateAgent). In contrast, regional Victoria rates are typically higher, ranging from 2.5% to 3.5% (OpenAgent, WhichRealEstateAgent) to account for different market dynamics.
Why are some inner-city commissions lower?
Inner-city areas like Fitzroy often see rates between 1.7% and 1.9% (OpenAgent, WhichRealEstateAgent). This is slightly below the broader metropolitan average of 1.87%–2.1%, reflecting different buyer densities and transaction volumes found in the inner-ring suburbs of Melbourne.
What must be included in a Sales Authority regarding fees?
By law, the Sales Authority must state the commission as both a percentage of the final sale price and the equivalent dollar amount. Furthermore, agents are required to inform the vendor that the commission is negotiable before the Sales Authority is signed.
Questions to ask your agent
- How many properties have you sold in this suburb in the past 12 months?
- What does the marketing package include and what are all additional costs?
- Why is auction recommended over a private sale for this specific property?
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.