Fees and commission guide

Real estate agent fees and commission in NZ

Understand how New Zealand real estate agent commission, GST, administration fees, minimums and marketing costs fit together before comparing written proposals.

Decision principle

Compare the total fee and service proposal on the same expected sale price — not a headline percentage in isolation.

01

What can appear on an agency proposal

A commission quote can combine percentage tiers, a fixed fee, a minimum commission and administration charges. GST may be shown separately, while marketing and auction costs are often outside the commission figure.

  • Commission before GST and the GST-inclusive total
  • Every fixed, administration and minimum charge
  • Marketing, photography, portals, auction and withdrawal costs
  • The circumstances that trigger commission and when it is payable

02

Published structures PropertySeller can reproduce

The national calculator currently uses only structures that can be applied without guessing a location, property type or office rule. This is an evidence threshold, not a ranking of agencies.

Current reproducible published fee structures
AgencyPublished structureImportant exclusionChecked
Total Realty1.5% of sale price + $550, then GSTMarketing separate; confirm service area31 Aug 2026
Flat Fee Realty$14,995 + GSTMarketing excluded; confirm service area31 Aug 2026
Barfoot & ThompsonTiered residential/rural structure + GST; $11,000 minimumAuckland/Northland and property-type rules; not yet in national calculator31 Aug 2026

03

Why a percentage is not the final number

A quoted rate may apply to only the first price band or the balance. Add fixed charges and GST before comparing. Then add the same marketing and optional-cost assumptions to every proposal.

  • Ask whether the rate is negotiable
  • Check whether the fee changes by office, agent, property or agreement
  • Ask whether a minimum overrides the percentage result
  • Keep the agreed calculation and any discount in writing

04

What the agency must explain

Before an agency agreement is signed, the agent should provide written details of how commission is calculated, the conditions under which it is payable, an estimated commission amount and the marketing plan and cost. An agency agreement is binding, so obtain legal advice when needed.

  • The commission trigger and any continuing entitlement after the agreement
  • Who pays marketing if the property is withdrawn or does not sell
  • Whether GST is included or added
  • Which services and advertising are included

05

Compare cost with the likely net result

The cheapest fee does not establish the best seller outcome. Test the agent's price evidence, buyer strategy, campaign plan, negotiation process and responsibilities alongside the complete cost schedule.