1. What is Real Estate Commission?

Real estate commission is the fee paid to agents for selling a property. In New Zealand, commission rates typically range from 1% to 4% of the sale price, with discount brokers offering rates as low as 1%.

2. How Commission is Calculated

The basic commission calculation is:

Where:

• Sale Price — The final selling price of the property in NZD
• Commission Rate — The percentage rate charged by the agent

Example: For a $800,000 sale at 1.5% commission: $800,000 × 0.015 = $12,000

3. Understanding Low Commission Rates

Details: Low commission rates (1-2%) are typically offered by discount real estate agencies. While they save money, they may offer fewer services than full-service agents charging higher rates.

4. Using the Calculator

Tips: Enter the expected sale price of your property and the lowest commission rate you've been quoted. The calculator will show the minimum commission you'd pay.

5. Frequently Asked Questions (FAQ)

Q1: Are commission rates negotiable in NZ?
A: Yes, commission rates are always negotiable. Many agents will adjust their rates based on property value and market conditions.

Q2: What's included in a low commission rate?
A: This varies by agency. Some low-cost agents provide full service, while others may charge extra for marketing or professional photography.

Q3: Are there fixed-fee alternatives?
A: Some companies offer fixed-fee services where you pay a set amount regardless of sale price, which can be cheaper for high-value properties.

Q4: When is commission paid?
A: Commission is paid at settlement, deducted from the sale proceeds before you receive your funds.

Q5: Does GST apply to real estate commissions?
A: Yes, GST of 15% is added to the commission amount, which is included in the total shown by this calculator.