What Percentage Do Most Estate Agents Charge in New Zealand?

• by Corbin Fairweather
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When you’re selling a house in New Zealand, one of the first questions on your mind isn’t about buyers or open homes-it’s about the fee. Estate agent fees can eat into your profit faster than you think, especially if you don’t know what’s normal. So, what percentage do most estate agents charge? The short answer: between 2% and 4% of the sale price, plus GST. But that’s not the whole story.

How Estate Agent Fees Work in New Zealand

Estate agents don’t charge a flat fee. They take a cut of the final sale price. That means if your house sells for $800,000 and the agent charges 3%, you pay $24,000 before GST. Add 15% GST, and that jumps to $27,600. That’s a lot of money, and it’s not negotiable in most cases-unless you know how to ask.

Most agents in Auckland, Wellington, and Christchurch stick to this 2-4% range. Smaller towns might go lower, sometimes as low as 1.8%, especially if the property is easy to sell. But in high-demand areas like Devonport or Ponsonby, you might see agents push for 4% or even 4.5% because they know they can sell it fast.

Here’s the thing: the fee isn’t just for showing the house. It covers photography, listing on Trade Me Property, open homes, negotiations, legal paperwork, marketing materials, and their time. But not all agents deliver the same value. Some just slap up a basic photo and wait. Others invest in drone footage, virtual tours, targeted Facebook ads, and even staging. That’s why two agents charging the same percentage can feel totally different.

What You Get for Your Money

Let’s say you hire an agent charging 3.5% on a $750,000 home. That’s $26,250 plus GST = $30,187.50. What does that actually buy you?

• Professional photos and video walkthroughs (some agents outsource this; others do it in-house)
• Listing on Trade Me Property, OneRoof, and realestate.co.nz
• At least three open homes over two weeks
• Marketing emails to their buyer database
• Handling all offer negotiations and contract paperwork
• Coordination with lawyers and settlement agents

Some agents throw in extras-like professional staging, signage, or even a dedicated website for your property. Others don’t. And here’s where people get burned: they assume all agents are the same. They pick the cheapest one, only to find out their house sat for six weeks with zero viewings because the photos looked like they were taken with a phone in dim light.

Flat Fees vs Percentage: Which Is Better?

You might hear about agents offering flat fees-say, $15,000 no matter the sale price. Sounds great, right? But here’s the catch: flat fees usually come with limits. They might only include basic listing, no open homes, no marketing beyond Trade Me, and you’re expected to handle viewings yourself.

Flat fee services work best for sellers who are confident, have time, and live in a hot market where buyers come knocking without much effort. In Auckland’s current market, that’s rare. Most sellers need the agent to do the heavy lifting.

Percentage-based fees align the agent’s incentive with yours. If they sell for more, they earn more. That’s why top agents push harder to get the best price-they’re not just trying to close a deal, they’re trying to maximize your return. A flat fee agent has no reason to fight for an extra $50,000. They’ve already been paid.

How to Negotiate Your Fee

Many sellers think estate agent fees are fixed. They’re not. You can negotiate. Here’s how:

1. Get at least three quotes from different agencies. Don’t just call the one down the street. Look at agencies that specialize in your suburb.
2. Ask what’s included. Some agents charge extra for photography or advertising. Make sure you know what’s in the package.
3. Point out if your property is easy to sell. High demand, good condition, in a popular school zone? Use that as leverage.
4. Offer to handle your own viewings if you’re available. Some agents will drop the fee by 0.5% if you’re willing to do the footwork.
5. Ask for a performance clause. Some agents will agree to reduce the fee if the property sells within 30 days.

One client in Mt Eden sold her house for $1.1 million after negotiating her agent’s fee down from 3.8% to 3%. She saved $4,400. That’s a new kitchen.

Hidden Costs to Watch Out For

Agent fees aren’t the only costs. Watch out for these:

• Marketing fees: Some agents charge extra for premium listings or glossy brochures. Ask upfront if it’s included.
• Advertising fees: If they’re running Facebook ads or Google Ads, make sure you’re not paying extra unless you agree to it.
• Early termination fees: If you change agents halfway through, some contracts charge you a penalty. Read the fine print.
• Disbursements: Things like title searches or courier fees. These should be minimal and transparent.

Always ask for a written breakdown before signing anything. If an agent refuses, walk away.

What Happens If Your House Doesn’t Sell?

Agents only get paid when the sale settles. No sale, no fee. That’s the standard in New Zealand. But some agents will try to lock you into a 90-day contract and then push you to renew. Don’t feel pressured. You can switch agents after 30 days if you’re not happy-just check your contract.

There’s also a growing trend of “no sale, no fee” agents who don’t charge anything unless the deal goes through. These are often newer agencies or online platforms. They’re worth considering if you’re unsure about traditional agents.

Real Examples from New Zealand Markets

In 2025, here’s what sellers actually paid:

• A $620,000 home in Tauranga sold with a 2.5% fee: $15,500 + GST = $17,825
• A $1.4 million villa in Remuera sold with a 3.2% fee: $44,800 + GST = $51,520
• A $480,000 townhouse in Hamilton sold with a 2% fee: $9,600 + GST = $11,040

Notice the pattern? Higher-value homes often have slightly lower percentages. That’s because the absolute fee is already large, so agents are willing to reduce the rate to win the listing.

When to Use a Discount Agent

Discount agents aren’t always bad. If you’re selling a property in a hot suburb, have a unique buyer already lined up, or are comfortable managing viewings yourself, they can save you thousands.

But if you’re a first-time seller, dealing with a complicated sale (like a divorce or inheritance), or just want someone to take the stress off your shoulders, pay for the full service. The peace of mind is worth more than the savings.

Final Advice: Don’t Just Pick the Cheapest

The lowest fee doesn’t mean the best outcome. I’ve seen houses sell for $100,000 less because the agent didn’t market them well. That’s not a saving-it’s a loss.

Look for agents who:

• Show you recent sales in your street
• Can explain their marketing plan clearly
• Have a strong online presence and reviews
• Don’t pressure you to sign on the spot

Ask them: “What’s your average days on market for homes like mine?” and “How many offers do you typically get?” Their answers tell you more than their fee.

Remember: you’re not buying a service. You’re buying a result. The right agent doesn’t just sell your house-they get you the best price, with the least stress.