1. What is Real Estate Commission?

Real estate commission is the fee paid to real estate agents for their services in selling 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 (NZD)
• \( Commission\ Rate \) — The agreed percentage rate (typically 2-4% in NZ)

Note: Some agents may use tiered commission structures where the percentage changes at different price points.

3. Typical Commission Rates in NZ

Current Rates: In New Zealand, commission rates typically range from 2% to 4% of the sale price, plus GST. Rates may vary by:

• Region (Auckland rates may differ from provincial areas)
• Property value (higher-value properties may have lower percentages)
• Agency (different real estate companies have different fee structures)

4. Using the Calculator

Instructions: Enter the property sale price in NZD and the agreed commission rate as a percentage (e.g., 3.5 for 3.5%). The calculator will show the commission amount before GST.

5. Frequently Asked Questions (FAQ)

Q1: Is GST included in the commission?
A: No, GST of 15% is typically added to the commission amount in addition to the calculated figure.

Q2: Can I negotiate commission rates?
A: Yes, commission rates are always negotiable in New Zealand. It's recommended to compare rates from multiple agents.

Q3: Are there fixed-fee alternatives?
A: Some agencies offer fixed-fee services, particularly for higher-value properties.

Q4: When is commission paid?
A: Commission is paid upon successful settlement of the property, deducted from the sale proceeds.

Q5: What's included in the commission?
A: Typically covers marketing, viewings, negotiations, and paperwork. Always confirm what services are included.