How your commission is actually calculated
Commission is one of the most misunderstood parts of selling a home. Here's a straightforward explanation of how it works, what's negotiable, and what you should check before signing an agency agreement.
There's no fixed rate
Unlike some countries, New Zealand has no standard or legislated commission rate. Under the Real Estate Agents Act 2008, commission is a matter of agreement between you and your agency, and every agency sets its own rates and structure. This means it's genuinely worth comparing and asking questions.
The common structure: tiered percentage
Many agencies, including ours, use a tiered structure — for example, a higher percentage on the first portion of the sale price and a lower percentage on the remainder. This is designed to align the agent's incentive with achieving the best possible price for you, since the agent earns more on the amount above the threshold.
What's usually included — and what isn't
● Commission is typically payable only on an unconditional, settled sale — if the property doesn't sell, you generally don't pay commission.
● Marketing costs (photography, signage, online listing fees, print advertising) are usually a separate line item, agreed and budgeted upfront.
● GST is added to commission — always check whether the figure quoted to you is GST-inclusive or exclusive.
Questions worth asking before you sign
● Is this rate negotiable, and if so, on what basis?
● What happens if I sell privately during the agency agreement period?
● Is there a minimum commission fee regardless of sale price?
● What's the cancellation process if I'm not happy with the agency agreement?
A transparent conversation, every time
We believe you should understand exactly what you're paying for and why, before you sign anything. Our team will walk you through your agency agreement line by line — no fine print surprises.
Note: Want to run the numbers on a potential sale? Ask us about our commission calculator, or get in touch for a personalised quote.