Real estate commission in NZ: what agents charge, what to negotiate

Commission is the single biggest cost of selling a home in New Zealand, and it’s the number most sellers understand least. This guide explains how fees are actually structured, what they add up to, what you can negotiate, and the one mistake that costs sellers far more than the fee itself.

How commission is structured

Almost every agency in New Zealand charges a tiered percentage plus a fixed administration fee, and almost all of it is quoted before GST. A typical structure looks like this:

Component	Typical range (2026)
First tier (e.g. up to $400,000–$500,000 of the sale price)	2.5%–4%
Second tier (the balance above that)	1.5%–2.5%
Administration or marketing fee	$500–$1,000
GST	15% on the total

The exact tier breakpoints and rates vary by agency, by region and by the individual agent’s authority to discount. Franchise brands publish a rack rate; the person sitting at your kitchen table usually has room to move on it.

Worked example on a $950,000 sale, using 3.5% on the first $450,000 and 2% on the balance, plus a $600 admin fee:

• First tier: $450,000 × 3.5% = $15,750
• Second tier: $500,000 × 2% = $10,000
• Admin fee: $600
• Subtotal: $26,350
• GST: $3,952.50
• Total: $30,302.50 — about 3.2% of the sale price

That’s the number to anchor on. Ask every agent you interview for this calculation, in writing, on a realistic price for your property. “Three percent” is not an answer.

What else you might pay

Marketing. Most agencies ask vendors to fund some or all of the marketing — professional photography, Trade Me and realestate.co.nz premium listings, signboard, print, video. Budgets range from around $1,500 for a basic package to $10,000+ for a premium campaign in a competitive market. Some agencies fund marketing themselves and recover it through a higher commission; some offer to defer it until settlement. Either way it should be itemised in the agency agreement, and you should ask which items you are still liable for if the property is withdrawn.

Auction fees. If you sell by auction, there is usually an auctioneer’s fee and sometimes a venue fee, typically a few hundred dollars each.

Your lawyer. Conveyancing is separate from the agent and typically runs $1,500–$3,000 for a straightforward sale. Budget for it; a good property lawyer earns their fee on the agency agreement alone.

What is negotiable

More than most sellers assume. Agents are self-employed contractors paid a split of the commission, and a listing in hand is worth more to them than a rack rate on paper.

The rate. A quarter to half a percent off the first tier is common for a well-presented property in a strong market, or for a seller who has done their homework and is talking to more than one agent. Ask directly: “What’s the best you can do on the rate, and what would you need from me to justify it?”

The structure. A flat rate is not the only option. A sliding scale — a lower base rate with a higher rate on anything achieved above an agreed threshold — aligns the agent’s reward with the outcome you care about. Not every agency will agree to one, but the good ones will at least discuss it.

The admin fee. Often waived on request.

Marketing. Ask what the agency contributes. Ask whether the agency’s contribution increases if you sign a sole agency for the full term.

The term. Ninety days is standard for a sole agency; sixty is achievable. A shorter term costs you nothing and keeps the agent focused.

What is not usually negotiable is the commission on a sale to a buyer the agent introduced during the agency period, even if the sale happens after the agreement ends. That “holdover” clause is standard and fair; just know it’s there.

The mistake that costs more than the fee

Sellers routinely spend hours shaving 0.25% off a commission and thirty seconds choosing the agent. On our $950,000 example, 0.25% is about $2,700 including GST. The gap between what a top-performing local agent and an average one achieve on the same property is frequently five to ten times that — in price, in days on market, or in whether the sale falls over during the conditional period.

The right question is not “who is cheapest?” but “who is most likely to get me the best net result?” The top 10% of agents don’t charge more than the rest. That is the whole point of comparing them properly before you sign.

Before you sign the agency agreement

New Zealand law requires the agent to give you the Real Estate Authority’s approved agency agreement guide before you sign, and to recommend you get legal advice. Read it. Then check the agreement for:

• Sole or general agency, and the term
• The commission calculation, including tiers, admin fee and GST, worked on an estimated price
• Vendor-paid marketing, itemised, and what happens to it if you withdraw
• The holdover period after the agreement ends
• Your cancellation rights — for a sole agency you can cancel by 5pm on the first working day after you receive your copy, and the agreement must explain how

If an agent pressures you to sign at the appraisal, that tells you something. A good agent expects you to take it away, read it and come back.

Summary

• Expect a tiered rate plus admin fee plus GST, adding up to roughly 3%–3.5% all-in on a typical sale. Get the total in writing on a realistic price.
• Rate, structure, admin fee, marketing contribution and term are all negotiable. Ask.
• Marketing is usually on top, and usually vendor-paid. Itemise it.
• Choosing the wrong agent costs multiples of what you’ll ever save on the rate. Spend your effort on the comparison, not the discount.

Want to see which agents actually perform in your area before you talk fees with anyone? Tell us about your property — it’s free, independent and there’s no obligation.

Rates and fee structures in this guide reflect what we see across the market in 2026. They vary by agency and region; always confirm the exact figures with the agent in writing.