Real estate agent commission in NZ: what does it cost to sell?
Updated 12 Oct 2026 · 5 minute read
Agent commission is usually the biggest single cost of selling a house. It's also the one most sellers understand least until the bill arrives. Here is how it works and what it comes to.
How agent commission works
Most New Zealand agencies charge a percentage of the sale price. Many use a tiered rate: a higher percentage on the first part of the price and a lower one on the rest. Some add a fixed administration fee on top.
GST of 15% is then added to the commission. Marketing is usually a separate cost. You normally pay for it up front, and it's generally not refunded if the house doesn't sell.
Commission rates aren't set by law. Each agency sets its own, and you can negotiate.
What that looks like in dollars
As a rough guide, commission often works out at around 2.5% to 4% of the sale price, plus GST.
| Sale price | At 2.5% | At 4% |
|---|---|---|
| $500,000 | $12,500 | $20,000 |
| $750,000 | $18,750 | $30,000 |
| $1,000,000 | $25,000 | $40,000 |
| $1,500,000 | $37,500 | $60,000 |
All plus GST. Indicative only: rates vary by agency and region, and tiered rates will give different figures. Ask each agency for a written quote. Source for the range: commission rates.
What an agent does for it
A fair comparison needs both sides. An agent appraises the house, plans the marketing, runs the open homes, follows up buyers, handles the negotiation, and passes the signed agreement to the lawyers. For some sellers that is worth the fee.
None of those jobs need a licence when you do them for your own house. If you're willing to do them yourself, the commission is what you save. Our step-by-step guide shows what's involved.
Questions to ask an agent before you sign
- What is the rate, and what exactly is it calculated on?
- Is GST included in the figure you've quoted me?
- What will marketing cost, and do I pay it if the house doesn't sell?
- How long does the agency agreement run, and how do I end it?
- What happens if I find the buyer myself?
- Is the commission still payable if the sale falls through?
Get the answers in writing, and read the agency agreement before you sign it. If anything is unclear, ask your lawyer.
The alternative: a flat fee
A flat fee doesn't grow with your sale price. With Praedium you pay $2,000 + GST per house in total: $1,500 + GST to set up, and $500 + GST when your sale goes conditional. You still pay your lawyer and your listing fees, as you would with an agent. See what it costs to sell a house for the full list.
How Praedium helps
Praedium replaces the commission with a flat $2,000 + GST per house. You get the checklist, the open home tools and the offers portal an agent would otherwise run for you, plus an AI coach that suggests how to respond to each offer. You stay in charge of every decision.
Common questions
Is real estate commission negotiable in New Zealand?
Yes. Rates aren't set by law, and agencies can and do agree to different rates. Ask before you sign the agency agreement, not after.
Do you pay GST on real estate commission?
Almost always. Agencies are GST registered, so 15% GST is added to the commission. Check whether a quoted figure includes it.
Who pays the real estate agent, the buyer or the seller?
The seller. The commission is usually taken out of the buyer's deposit before the rest is passed on to you.
This guide is general information for New Zealand home sellers, not legal, financial or tax advice. Praedium is not a real estate agent. Every sale is different, so talk to your own lawyer or conveyancer before you sign anything.