In the world of real estate, property auctioneering offers one of the most profitable careers, working directly with high-value properties and clients. Largely a sales-oriented role that centres on working in a high-stakes environment, the role of an auctioneer might attract individuals looking for a lucrative, exciting, and dynamic career in real estate.
In this article, we’ll discuss how much auctioneers make per sale, how earnings work, and the factors that contribute to an auctioneer’s salary in Australia.
How much do real estate auctioneers make on average?
The average salary that auctioneers take home in Australia is $93,931, according to the Economic Research Institute (May 2024). In addition to this amount, they also earn an average bonus amount of $14,193. With regards to a single sale, auctioneers can make anywhere from $400 to $1,000.
However, when it comes to the real market, the actual potential for how much auctioneers can make per sale is much higher — depending on how they decide to charge or earn their fees, as well as a range of other factors.
How do auctioneers earn their income?
Flat fee
Most auctioneers employ a flat-fee pricing structure, charging a fixed amount for each auction they manage. This amount is earned regardless of how many hours they work or the auction’s sales proceeds.
This gives auctioneers a safe amount to fall back on — no matter the outcome of the sale amount, sellers will still be required to pay the agreed flat fee amount.
Buyer’s premium
Some auctions incorporate a buyer’s premium, an additional percentage added to the winning bid that contributes to the auctioneer’s earnings. The difference between it and a commission rate is that the fees for the buyer’s premium are paid for by the buyer instead of the seller. This is not an uncommon practice and is up to the discretion of the auctioneers as to whether to include it as part of their fees. With the inclusion of a buyer’s premium, the amount earned per sale by an auctioneer will be further increased.
Hourly rate
Depending on the nature of the property sale, auctioneers can set hourly rates where they will receive a stipulated amount based on how long they spend on preparing and servicing the auction.
Salary
As real estate professionals themselves, property auctioneers can work independently or find employment with agencies that require their expertise. Under this arrangement, they will usually earn a stable income.
Additional factors affecting how much auctioneers can earn
Much like real estate agents, property auctioneers work from sale to sale and have the potential to create a very lucrative career. That being said, how much auctioneers can earn at the end of the day will come down to how they charge for their services, as well as:
Number of auctions
The more sales auctions serviced, the more commission there is to be earned. This means that auctioneers have to establish their services well in their community and networks to keep themselves open to opportunities.
Often, property auctioneers will actively keep themselves up to date with the real estate markets they service and build good connections with real estate agencies or other professionals.
Location
Location is a big factor for auctioneers — a bustling city area is bound to have significantly more opportunities for property sales compared to a remote region, and thus a higher demand for auction services.
Being in the right location can make all the difference in how much demand there is for auctioneers, which directly affects how much that can be earned.
Track record and expertise
Seasoned auctioneers will have a proven track record as proof of their expertise, allowing them to command higher commission rates and fees for their services. In addition to this, experienced auctioneers will also possess a deeper understanding of the market and honed negotiation skills, which make them more attractive to property sellers in need of their services.
Kickstart your auctioneer career with the right qualification
Becoming an auctioneer in Australia is more straightforward than you think! At Entry Education, we offer the Auctioneer Accreditation course to help individuals gain the necessary skills and knowledge for working as an auctioneer in NSW and VIC, covering the pre-auction process, conducting the sale by auction, and completing the post-auction process. Get started with the course today and begin your journey towards an exciting, lucrative, and fast-paced career.
