Real estate commission NZ: what to expect + tips on negotiating

Real estate agent commission is typically calculated as a percentage of your sale price. You can expect to pay 2.95% to 3.95% of the first $500,000 then 2% to 2.5% of anything above that amount (plus GST of 15%). 

Some agencies charge more, some charge less. Some may also charge a flat fee instead of a percentage commission. Most agents don’t get this entire fee. The majority of agents split their commission with their office, meaning they’re left with anywhere from 50% to 80%. 

Remember that cheaper doesn’t necessarily mean better – you may get a less comprehensive service, or a less experienced real estate agent, which could result in a lower sale price. 

Yes, real estate agent fees in NZ are 100% negotiable. It’s always best to find a few agents that you trust to sell your home then ask each of them their commission after they’ve provided a market appraisal. Let them know you’re considering all their options and that you’re price sensitive. 

• With that said, you could ask for a reduction in commission from say 2.95% to 2.25%, for example. 

• Alternatively, you could ask for a flat rate commission or another commission structure that you’d prefer. 

• Another option is to ask for marketing costs to be credited back to you after a successful sale – this means you pay for the marketing up front, then when the property is sold you get it back. 

Most agents will compromise in some way – you just need to ask and be willing to go with another option if they say no. When asking for a new fee structure, just make sure you do the maths and understand how much commission you could end up paying.

Note: the initial appraisal of your property should always be free, giving you a chance to meet agents without any obligations. 

Agent fees cover most of the services you need to achieve a sale. That includes, but isn’t limited to acting as a point of contact for enquiries, showing the property, providing expert advice and guiding you through the process, negotiating, and offering access to a pool of buyers ready to go. 

• Marketing – usually around $2,000

Your agent will charge you to create marketing for your property. This may include posting website listings, copywriting, social media posts and photography. This usually costs around $2,000 but can go up to $10,000+ for luxury properties, or when you choose extra services like property staging, videography or 3D modelling. 

• Auctioneer fees – usually around $900

If you sell via auction most agents charge a separate fee to pay for the services of an auctioneer. This is often worth a cost as a good auctioneer can make a difference. 

• Admin fees – around $400 to $600. 

Some real estate agents charge extra administration fees to cover the costs of handling documents and communications. It’s worth asking for these to be waived. 

The vast majority of real estate agents are GST registered and have to charge GST on top of their commission. That means you’ll need to pay the commission plus 15%, which, for example, would be around $2,200 to $4,500 if you sold the average home in New Zealand (depending on who you worked with).