For sellers
In New Zealand, the seller pays the real estate agent's commission. It's usually a percentage of the sale price — often tiered — plus an administration fee, with GST on top. Your agent has to set it out in writing, with a dollar estimate, before you sign, and it's normally taken from the buyer's deposit once the sale goes unconditional.
Updated 22 October 2026 · Checked against settled.govt.nz and the Real Estate Authority
Get a written estimateAt a glance
Real estate commission — also called real estate agent fees — is what you pay an agency to sell your property: marketing it, finding buyers and working with them, and managing the sale through to settlement.
It's usually a percentage of the final sale price, agreed between you and the agency before your property goes on the market. The details are set out in the agency agreement: how it's calculated, when it's payable, and any other fees.
Most agencies charge a percentage of the sale price, often tiered — a higher rate on the first portion and a lower rate on the balance — plus a flat administration fee. The rates vary with the agency, the property and the market.
Before you sign, your agent must explain the formula they use and give you a written estimate, in dollars, of the commission you'd pay if your property sells at their estimated price. They also have to be clear about whether the figures include or exclude GST.
When you sign a sale and purchase agreement, the buyer pays a deposit into the agency's trust account. Once the agreement becomes unconditional, the agency usually takes its commission out of that deposit, and the rest goes to you.
Commission is normally only payable when your property sells, on the terms in your agency agreement.
The agency agreement is a legally binding contract between you and the agency, so read all of it before you sign, and have your lawyer check it. Every fee and charge should be set out up front, so nothing comes as a surprise later.
Your agency agreement will also set out any marketing costs, which are charged separately from commission. Paying for extra marketing is usual, but it's your choice. Ask what the agency already provides at no charge, such as listing your property on its own website.
The agency should give you a marketing plan showing what you're paying for and when. Advertising is usually paid up front, and you pay for it even if your property doesn't sell — so weigh each cost against what it's likely to bring in.
Your agent must also tell you about any rebate, discount or commission they receive in connection with the work they do for you.
There are two kinds of agency agreement:
An agency must warn you if there's any risk you could end up paying two commissions — for example, because another agency's agreement hasn't ended, or because another agent introduced the buyer.
The REA publishes standard clauses that agencies can use in their agency agreements. They protect you by reducing the chance of being charged commission by two agencies, and by making clear when the agreement ends and when commission is payable.
Not every agency uses them. settled.govt.nz recommends only using agencies that do — ask about them before you sign.
The REA is the independent government agency that regulates New Zealand's real estate profession. It licenses agents, sets the rules they work under, and deals with complaints about them.
You can cancel a sole agency agreement in writing by 5pm on the first working day after you're given a copy of it. For a residential property, if the agreement runs for more than 90 days, either you or the agency can end it in writing at any time after 90 days.
Cancelling doesn't always end what you owe. Your agreement sets out when commission might still be payable after it ends — during the stand-down period, for example. If you're planning to list with someone else, check with your lawyer first.
No. In New Zealand the listing agent works for the seller, and the seller pays their commission. The only time a buyer pays an agent is if they've hired their own buyer's agent.
Price vs value
It's natural to compare agents on their fee. But commission is a small share of the sale — the price your agent achieves is the big number. A lower fee can easily cost you more than it saves if it comes with a lower price, a longer time on the market, or a sale that falls over.
So when you compare agents, look at what you're getting for the fee, not just the fee itself.
A good agent should be able to explain exactly what their fee pays for. If they can't, that tells you something too.
Their recent sales in your area — the prices achieved against the appraisal, and how long homes took to sell. Ask to see the evidence.
The plan for your property, and the buyers they can put it in front of before it's even advertised.
How they'll create competition between buyers, handle offers, and hold out for the best result for you.
How often you'll hear from them, and who you'll deal with day to day.
What past sellers say about them, in reviews you can check for yourself.
Questions
Thinking of selling?
Ask us for an appraisal and we'll set out our commission in writing — how it's calculated, when it's payable, and what it would come to at the appraised price — before you sign anything. There's no obligation to list.
Or call 09 262 2250Sources
General information only, current at 22 October 2026. It isn’t legal advice — have a lawyer check any agency agreement before you sign it.