Real Estate Agent Fees NZ: How Much Commission Do You Pay?
TL;DR (key facts you can trust)
● Fees cover commission for service, a small admin fee, and any vendor-paid marketing; all must be shown clearly before you sign an agency agreement. Settled.govt.nz
● Commission is usually deducted from the buyer’s deposit, which is held in a trust account until settlement — plan your cash flow accordingly.
● You’ll pay GST on the agent’s commission, and it should be stated in your signed agreement so there are no surprises at settlement.
● You’re only liable to pay commission with a written, signed agency agreement; be careful not to trigger “two commissions” by overlapping agreements. The Real Estate Authority
● There’s no fixed national rate; price-fixing is illegal, so quotes will vary — compare value, inclusions and method, not just a headline percentage. Commerce Commission
Introduction — what fees cover and why they matter
Real estate agent fees nz can feel confusing, but this guide breaks them down clearly so you can compare and negotiate with confidence. Real estate commission nz is the success-based charge for selling your home, while real estate fees can also include a modest admin fee and any marketing you approve (photos, video, print, online). Before any work starts, your agency agreement must set out how the real estate agent commission is calculated, when it’s payable, and what marketing costs are included — that transparency lets you compare like-for-like and negotiate with confidence.
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What counts as “real estate fees NZ”
Real estate agent fees nz generally fall into three buckets you can compare side-by-side:
● Commission — the success-based charge for selling your home.
● Admin fee — a small office/processing cost (if used) that should be disclosed upfront.
● Vendor-paid marketing — photos, video, print, portals; agree what’s included vs optional.
When do you actually pay? In most sales, commission is taken from the buyer’s deposit held in trust after the sale and purchase agreement is signed; your statement will show the deduction clearly.
How to compare proposals quickly
● Ask for the real estate agent fees nz formula in dollars at your expected sale price, including GST for clarity.
● Request a one-page itemisation of marketing (what’s included vs optional).
● Check the admin fee and any conditions.
● Confirm expiry/cancellation terms that could affect payment.
● Use this alongside 23 questions to ask real estate agents to spot differences fast
How real estate agent commission works
Real estate agent fees nz make more sense once you see how real estate agent commission nz is set up in the agency agreement you sign before any work starts; that document spells out roles, the calculation method, and when an agent can claim payment.
Agency agreements 101 :
● Sole vs general: a sole agency gives one agency the rights to market; a general lets multiple try. Either way, get the method for real estate agent commission in writing and note any expiry/cancellation terms. The Real Estate Authority
● Introduced-buyer risk: if a buyer first came via an agent, commission can still be claimed even if you later sell privately—clarify this before you sign.
● Your copy within 48 hours: the agent must give you a signed copy promptly; keep it for reference when comparing offers and obligations.
What percentage do real estate agents charge nz?
There’s no fixed national rate; agencies set their own structures and must explain the formula clearly so you can see the real estate agent commission in dollars at your expected sale price. Ask for the tier steps (if any), any admin fee, and a line confirming plus GST. For certainty on GST, the standard rate in New Zealand is 15%. Inland Revenue
GST clarity in one line:
Commission and eligible fees are generally subject to 15% GST, so confirm your totals are quoted inclusive vs exclusive to avoid surprises at settlement.
Compare like-for-like (quick method):
● Request the calculation method and a dollar estimate at your likely sale price.
● Note the agreement type, term, and any cancellation window that affects when real estate agent commission nz is payable.
● Line up inclusions (marketing, admin) and confirm whether amounts are incl. GST.
● Use this side-by-side with how to compare real estate agents in New Zealand for a simple, objective check.
Ready to see real numbers? Compare real-world proposals and get two to three tailored quotes for your suburb, fast.
The law: Real Estate Agents Act 2008 protections
Real Estate Agents Act 2008 sets the ground rules so sellers know where they stand and when commission can be charged. In short, an agent isn’t entitled to commission without a written agency agreement, so never proceed on a handshake. See the Act here: Real Estate Agents Act 2008 — section 126.
What this means for you :
● Get it in writing: commission and any expenses must be authorised in a signed agency agreement before work starts. The REA also requires the agent to give you a copy within 48 hours — keep it with your records.
● Use the standard clauses when possible: they’re designed to reduce the chance of paying two commissions and to clarify when an agreement ends.
● Mind the “introduced buyer” rule: if a buyer first came via an agent, that agency may still be able to claim commission if you later sell to them after the agreement ends — your agreement should spell this out.
Handy prep before you sign: run through a short checklist on roles, term, cancellation window, and how commission is calculated. Find your top local agent
Real estate fees NZ: worked examples (DIY “calculator” logic)
Real estate agent fees nz make the most sense when you run the numbers like a simple real estate agent fees calculator nz — no app required, just four steps you can repeat for any quote:
Take the agency’s commission formula (e.g., tiered percentages by price band) and apply it to your expected sale price.
Add the admin fee (if any).
Add 15% GST to the subtotal so you’re comparing like-for-like. (GST in NZ is 15%.)
Check whether the buyer’s deposit comfortably covers the real estate agent fees nz, once all conditions are met.
Tip: Keep a copy of this section handy when you review proposals alongside the process of selling a house in 2025.
Worked example 1 — sale price $800,000 (illustration only)
This example shows how real estate agent commission nz is turned into dollars; swap in the actual tiers from your proposal before you decide.
● Assumed formula: 2.50% on the first $500,000, then 2.00% on the balance; admin fee $500; + GST.
● Commission: 2.50% × $500,000 = $12,500; 2.00% × $300,000 = $6,000 → subtotal $18,500.
● Add admin: $18,500 + $500 = $19,000.
● Add GST (15%): $19,000 × 0.15 = $2,850 → total incl. GST = $21,850.
If the buyer’s deposit were, say, $80,000, the agent would deduct $21,850 at the appropriate point and the balance would flow through your lawyer’s trust account, with the remainder of the deposit then released to you. (Deposit handling and commission deduction are outlined in Settled’s settlement-day guidance.) Settled.govt.nz
Worked example 2 — sale price $1,200,000 (illustration only)
This second run uses a different tier to show why real estate fees nz can vary between proposals even at the same price.
● Assumed formula: 3.00% on the first $400,000, then 2.00% on the balance; admin fee $750; + GST.
● Commission: 3.00% × $400,000 = $12,000; 2.00% × $800,000 = $16,000 → subtotal $28,000.
● Add admin: $28,000 + $750 = $28,750.
● Add GST (15%): $28,750 × 0.15 = $4,312.50 → total incl. GST = $33,062.50.
If the buyer’s deposit were $120,000, the agent’s commission and fees ($33,062.50) would be deducted from that deposit per the agreement and your statement would show the numbers clearly before the balance is transferred.
Make this practical in two minutes
● Use the four-step method above with your quote (tiers → admin → + GST → deposit check).
● Jot totals for two or three agencies on one page so you can compare like-for-like.
● Sense-check inclusions (photos, video, portal fees) and confirm whether totals are incl. GST or excl. GST.
● When you’re ready to benchmark proposals, request a free side-by-side comparison and we’ll line up top local agents for your property and suburb.
Negotiation: fair terms vs unfair terms
Because real estate agent fees nz are negotiable, focus on achieving clarity, fairness, and full transparency before signing. Ask each agency to show the calculation method in dollars at your likely sale price, whether any admin fee applies, what marketing is included vs optional, and the term of any sole agency. Treat the signed agency agreement as your source of truth — it’s a legally binding contract, so make sure it reflects what you discussed.
What’s fair to negotiate (practical checklist)
● The commission structure (tiers or flat %), explained in plain dollars.
● Any admin fee and when it’s charged.
● Marketing inclusions (photos, video, portals) and caps on optional spend.
● Sole-agency length and a reasonable cancellation window (so you’re not locked in longer than needed).
● A clear line showing incl. GST totals.
Unfair or risky terms to watch for
● Clauses that penalise you excessively for cancelling or changing tack.
● Vague wording that lets an agency change fees unilaterally after you’ve signed.
● Any presentation of prices that could be misleading (e.g., exclusive-of-fees headlines without the real total). If something feels one-sided or unclear, press for a rewrite or walk away. Consumer Protection
How to keep leverage (and your sanity)
● Get two or three written proposals on the same day and compare them side-by-side.
● Keep all negotiation promises in the contract, not just emails or verbal assurances.
● If you’re unsure, sleep on it and show the agreement to a trusted adviser before signing.
● Want a benchmark for who sells homes like yours? Read how to choose the best real estate agent in Auckland and adapt the questions to your suburb.
Competition law: why “real estate rates nz” aren’t uniform
Real estate agent fees nz vary because each agency must set its own pricing — there’s no fixed national rate, and it’s illegal for competitors to agree prices (that’s cartel conduct under NZ law).
What this means for you
● Expect quotes to differ on structure (tiers vs flat), inclusions, and service level.
● Compare the method and total in dollars (incl. GST), not just a headline percentage.
● Get 2–3 written proposals on the same day so market conditions are comparable.
● If you’re weighing up whether to sell privately vs using an agent, browse our real estate guides for pros and cons.
Choose with confidence: build a shortlist of proven performers for your suburb: shortlist top local agents (free and independent).
Choosing the right agent (beyond the fee)
Real estate agent fees nz matter, but the biggest wins usually come from picking the right person and plan for your property and suburb.
Evidence to request (quick checklist)
● Comparable sales: addresses, prices, days on market, and how those results relate to your home.
● Suburb strategy: target buyers, channels (digital/print), and the reasoning behind the recommended method (auction, deadline, price-by-negotiation).
● Who does the work: who runs open homes, fields buyer calls, and negotiates; who’s the back-up on leave days.
● Reporting cadence: what you’ll receive after each open home, and how pricing feedback will be handled.
● Marketing plan & costs: what’s included vs optional, timelines, and who owns the creative assets.
Value over headline rates
● Real estate commission nz is only one input; weigh the likely sale price and time-to-sell the agent expects to achieve against their fee structure.
● Ask for a written dollar estimate (incl. GST) at your expected sale price so you can compare like-for-like.
● Confirm who pays what and when — in typical residential sales, the seller pays commission.
Keep your next steps simple
● Sense-check timing with the best time to sell for seasonal context.
● If you want a transparent, independent shortlist based on real performance, see how we work and line up two or three proposals before you decide.
Quote comparison checklist (printable)
Real estate agent fees nz are easiest to compare when you use one simple, consistent checklist for every proposal.
Fee formula in dollars: ask each agency to show the commission method at your likely sale price, and label totals, including. GST.
Admin fee: confirm if there’s a separate admin charge, when it applies, and whether it’s fixed.
Marketing inclusions: list what’s included (photos, video, portals) versus optional extras, with caps on any extra spend.
Agreement type & term: circle sole or general, the start date, end date, and any cancellation window.
Introduced-buyer clause: note how long a buyer introduced during the agreement could still trigger commission after expiry (write the time window in days).
Deposit coverage: Check the expected buyer deposit comfortably covers commission and fees at settlement.
Who does the work: record who runs opens, handles buyer calls, and leads negotiations.
Reporting & updates: confirm what you’ll receive after each open home and who you’ll talk to week-to-week.
Expiry and re-list risk: write down how the agreement ends and what happens if you change agency.
Sign-off page: ensure every negotiated promise is included in the contract, not just in emails.
Before you choose, run these checks alongside questions to ask a real estate agent so you can compare value, not just a headline percentage.
Conclusion — choose smart, compare clearly, act confidently
Real estate agent fees nz are only one part of a successful sale, but understanding the moving pieces gives you control. Start by getting the commission method in dollars (incl. GST), check any admin fees and marketing inclusions, and make sure everything is covered by a signed agency agreement with clear start/end dates and cancellation windows. If proposals look similar, lean on the evidence: recent comparable sales, a suburb-specific strategy, and who will actually run opens and negotiations.
Suppose something doesn’t feel right after you’ve signed. In that case,ma you have formal pathways: you can raise concerns directly with the agency and, if needed, make a complaint to the Real Estate Authority (REA), which oversees conduct and licensing in New Zealand.
Ultimately, the best outcome comes from comparing like-for-like proposals on both value and total cost. When you’re ready to see real numbers from proven performers in your suburb, find your top local agent — it’s free, independent, and built to help you choose with confidence.
