1. What is Real Estate Commission?

Real estate commission is the fee paid to real estate agents for their services in facilitating the sale of a property. In New Zealand, this is typically a percentage of the final sale price and is negotiated between the seller and the agent.

2. How Commission is Calculated

The standard commission formula is:

Where:

• Sale Price — The final selling price of the property in NZD
• Commission Rate — The agreed percentage rate between seller and agent

Example: For a $800,000 sale at 3% commission: $800,000 × 0.03 = $24,000 commission.

3. Typical Commission Rates in NZ

Details: Commission rates in New Zealand typically range between 2-4% of the sale price, though this can vary based on:

• Property value (higher-value properties may have lower percentages)
• Location (urban vs rural areas)
• Agency and individual agent agreements
• Current market conditions

4. Using the Calculator

Tips: Enter the property sale price in NZD and the agreed commission rate as a percentage (e.g., enter 3 for 3%). The calculator will show the commission amount in NZD.

5. Frequently Asked Questions (FAQ)

Q1: Is commission negotiable in New Zealand?
A: Yes, commission rates are always negotiable between the seller and the real estate agent or agency.

Q2: Are there GST implications on commission?
A: Yes, the commission amount is typically exclusive of GST (15%). The total payable would be commission + 15% GST.

Q3: Do all agencies charge the same rates?
A: No, commission structures can vary significantly between agencies. Some may offer flat fees or tiered percentage structures.

Q4: When is commission paid?
A: Commission is typically paid at settlement when the property sale is finalized.

Q5: Can I sell without paying commission?
A: Yes, through private sale options, though this requires handling all aspects of the sale yourself.