What is the Commission of Real Estate Agents Worth in Australia?

Australian Agents typically quote a percentage of the sale of your property, plus marketing fees. Commissions range from 1.8% to as high as 7 %, in some parts of Australia. Let’s give an example, and use something in the middle – let’s say 3%. You bought your property 5 years ago and paid $600,000. Today the property is worth $800,000. So, 3% of $800,000 is $24,000. Well now let’s look at the real percentage. Firstly, when you purchased your property, you had to pay stamp duty, (stamp duty calculator here) which was $31,000, so the property owes you $631,000 and the conveyancing cost you $1500-$2000, so now the property owes you $640,00. So take this from the $800k your property sold for, leaves you with $160k profit. But wait, you owe the agent $24,000, so that is 6.6% of your profit! Never mind your holding costs for interest all this time, or even the small renovations you’ve done. No matter which way you look at it, the Commission of Real Estate Agents is a much larger chunk of your profit than you think.