How to Avoid Real Estate Agent Fees When Buying or Selling a Home

When you're selling your home in Auckland, the last thing you want is to hand over 5% or more of your sale price to a real estate agent. That’s $25,000 on a $500,000 house-money that could go toward your next home, renovations, or just your bank account. The good news? You don’t have to pay those fees. There are real, legal ways to cut or eliminate realtor commissions-and many homeowners in New Zealand are already doing it.

Go FSBO: Sell Your Home Yourself

FSBO stands for "For Sale By Owner." It’s not a new idea, but it’s becoming smarter and more doable than ever. In 2025, over 18% of homes sold in New Zealand were FSBO, up from just 9% in 2020. Why? Because tools like Trade Me Property, Realestate.co.nz, and Flat Fee MLS services let you list your home for under $500 instead of paying 3% to 5% in commissions.

You’ll handle viewings, negotiations, and paperwork yourself. Sounds overwhelming? It’s not. Most sellers only need to spend 10-15 hours total over 6-8 weeks. You’ll need good photos, a clear description, and honest answers to buyer questions. You don’t need to be a realtor-you just need to be organized.

One Auckland homeowner, Lisa M., sold her three-bedroom house in Mt. Roskill for $685,000 in 2025. She used a flat-fee MLS service for $399, paid $150 for professional photos, and closed without an agent. Her net profit? $684,451. If she’d used a traditional agent at 3.5%, she’d have paid $23,975.

Use a Flat Fee MLS Service

This is the middle ground between hiring an agent and doing everything yourself. A flat fee MLS service lets you list your property on the Multiple Listing Service (MLS)-the same database agents use to find homes for their buyers. You get maximum exposure without paying commission.

Companies like MyHome (NZ), HomeLister, and FlatFee.co.nz offer packages starting at $299. They upload your listing to Trade Me Property, Realestate.co.nz, and sometimes even to realtor portals like Rightmove NZ. You still handle showings and negotiations, but buyers’ agents can still find your home and bring clients.

Important: If a buyer brings their own agent, you’ll still need to pay them a commission-usually 1.5% to 2%. But that’s still far less than the 3%-5% you’d pay if you hired a full-service agent. You’re only paying for the buyer’s side, not your own.

Negotiate Your Agent’s Commission

Not every agent charges 3.5%. Some are willing to drop their fee if you’re selling a high-value home, if you’re also buying through them, or if you’re in a hot market.

Here’s how to do it: Ask for a reduced rate upfront. Say something like: "I’m considering listing with you, but I’ve seen agents charge 2.5% on homes over $700k. Can you match that?" Or: "I’ll handle all marketing myself-can you just handle the paperwork and closing?"

In 2025, a survey of 217 Auckland sellers found that 43% successfully negotiated their commission down. The average reduction? 1.2%. On a $750,000 home, that’s $9,000 saved.

Work With a Discount Real Estate Broker

Some brokerages now operate on a hybrid model. They offer limited services at lower prices. Think of them as "agent lite." For example:

• RealtyONE Group offers a "Just the Basics" package: listing, MLS upload, and closing support for 1.5%.
• HomeBay (NZ-based) charges 1% on sales over $600k, with no upfront fees.
• OpenDoor NZ lets you sell quickly for a flat fee, but they buy your home directly-so you don’t get full market value.

These services are great if you want some help but don’t need full-service showings, staging, or 24/7 availability. You still save thousands.

Buyer’s Side: Avoid Paying Agent Fees When Purchasing

You might not realize it, but buyers can also avoid paying realtor fees. In New Zealand, the seller typically pays the buyer’s agent commission. That means you, as a buyer, don’t pay anything extra to work with an agent.

But here’s the twist: some agents still expect you to pay them directly, especially if you’re working with a buyer’s agent who isn’t part of a large agency. To avoid this:

• Ask upfront: "Who pays your commission?"
• Only work with agents who are clearly listed as representing the buyer in the MLS listing.
• Use a buyer’s agent who works on a flat fee or hourly rate-some offer $500 flat fees for home search and negotiation.

There’s also a growing trend of "buyer-only" agents who don’t take listings. They’re paid only by you, so their incentives are aligned with your best interests-not the seller’s.

What You Should Never Do

Some people try to avoid fees by skipping legal steps. Don’t do this:

• Don’t sign a contract without a lawyer. Even FSBO sales need a conveyancer.
• Don’t skip inspections. A $500 inspection can save you $20,000 in repairs.
• Don’t believe online claims that "you can sell without any paperwork." That’s illegal in NZ.
• Don’t avoid disclosure. Failing to reveal known defects (like leaks or asbestos) can lead to lawsuits.

Skipping legal steps doesn’t save money-it risks your entire sale.

Real Numbers: How Much Can You Really Save?

Let’s say you’re selling a $600,000 home:

That’s up to $20,800 more in your pocket by avoiding full commissions.

When You Should Still Hire an Agent

Not every situation is perfect for DIY. You might want an agent if:

• You’re moving out of the country and can’t manage viewings.
• Your home has unique features (heritage status, unusual layout) that need expert marketing.
• You’re buying and selling at the same time and need coordination.
• You’re not comfortable negotiating or handling legal paperwork.

There’s no shame in hiring help. The goal isn’t to do everything yourself-it’s to pay only for what you actually need.

Final Tips for Saving on Realtor Fees

• Start early. List your home 4-6 weeks before you plan to move.
• Use free tools: Canva for flyers, Google Photos for virtual tours.
• Ask friends with homes for sale how they did it-many will share tips.
• Check the Real Estate Agents Authority (REAA) website for licensed agents and fee guidelines.
• Always get a second opinion on your listing price. Use recent comparable sales (comps) from Realestate.co.nz.

Real estate fees aren’t fixed. They’re negotiable. And in a market where homes sell fast and buyers are active, you have more power than you think.