What is the difference between the "commission" charged by a licensed estate agent and the "referral fee" charged by a non-licensed agent for referring clients?
For most people, a real estate agent's commission is a necessary part of the sale of a home and the agent is an important partner in achieving the best possible sales outcome. What is a real estate agent's commission and how are they calculated? How does it differ from the referral fee charged by an introducer who is also involved in a property transaction?
If you are a licensed agent, then you get a share of the commission in proportion to your involvement in the property transaction.
The average real estate agent commission for a home for sale is usually between 2% and 3.5%， but this depends on your location. You can check the average agent's commission in your state in the table below:
As an example. If you are a licensed agent and you are the only one involved in this property transaction, then the commission is split equally with the agency director.
Example of commission calculation (Queensland), a sale of an AU$600,000 property would earn the agent a commission of AU$13,825 at the average rate shown below.
AU$18,000 by 0.5=AU$900.00
AU$520,000 by 0.25=AU$13,000.00
AU$900 plus AU$13,000.00=AU$ 13,900.00
For example in commission calculation (NSW/VIC), if your agent charges a 2.5% commission and your property sells for AU$750,000, you will need to pay your agent a commission of AU$18,750.00.
AU$750,000 by 0.25=AU$18,750.00
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