REAL ESTATE AGENT FEES & WHAT YOU SHOULD KNOW
By Trish Willis | Member of the Property Institute of NZ (IPAC)
Before you sign up with a real estate agent, it is important to calculate the agency commission rates, administration and marketing costs you might incur – no surprises.
You can find out about property brokers fees from the real estate agencies themselves but many home sellers want independent advice and information before contacting any agencies and ending up too far down the track and under pressure to list.
If you would prefer to talk directly with a genuinely independent property and real estate specialist about real estate commission and fees you can phone 0800 789 532 for free advice. This is an award winning service for independently vetting real estate agents for home sellers, all at no cost to the vendor.
An overview real estate agent fees are calculated here. View now.
Calculating Real Estate Fees, Marketing & Advertising Costs
With 14 years of service and providing independent advice to prospective home sellers, our research and analysis has shown home sellers can - and do - avoid unnecessary real estate fees to keep expenses to a minimum.
We can tell you ways to achieve the highest sale price, putting you at a greater advantage than others in your area, in your price range. But first:
- How much is real estate commission? This covers fees, percentages, example calculations and how agencies divide commission.
- Negotiating real estate commission and fees plus ballpark advertising costs, marketing costs, incentives offered, tips and traps to avoid.
- How to avoid paying double commission and when you are at risk of this occurring.
- Examples of real estate agents' expenses and legal responsibilities and real estate company compliance.
Situations that can incur double real estate fees
Until it happens, most people don't realise they could end up hit by double commission.
Real estate commission disputes can be referred to the Real Estate Authority but it's best to avoid this path in the first place.
If you have had your property listed with one real estate agent but have not sold it and are now going to list with another agent (whether they are with the same company or a new one) you are at risk of paying two commissions - one to the first agent and one to the second.
When the first listing contract ends, a) when the time period concludes, or b) when you cancel it in accordance with the terms of the agreement, the first agent must give you a list of the people who have made contact and you should pass this to the new agent.
The main reason for this is that should the property be sold to a person on that list by the second agent, the first agent may try to make a claim for part of the commission from the second agent or claim a second commission from you. It can get very messy but is something we can advise you on.
Can I change my realtor after signing a contract?
If you are regretting signing a real estate agency contract or are dissatisfied with your current agent's services or conduct, we can advise you on how to change real estate agents.
Find out more about changing real estate agents here or call 0800 789 532 for a confidential discussion. We're here to help and it's a free service NZ-wide.
Introduced clauses prevent double commission
There was formerly a grey area around the issue of double commission and as a result, industry bodies came up with new clauses that provide more transparency around the situation when signing an agency agreement to sell a property.
You can completely avoid the risk of paying two real estate commissions by taking the following steps:
1. The best method of prevention is to list with a vetted real estate agent who has the skills to sell your property first time around.
2. If you are in the unfortunate position of having to relist your property for sale, provide your new agent with the list of enquirers from the first agent and ask the new agent to exclude those people from the listing agreement you enter into with them.
3. If you find a real estate agent does not want to include this clause you should seek to get a vetted agent.
Two agreement types - ensure you have the right one
For impartial, free advice about real estate commission and other fees when selling your house - call 0800 789 532 now.
There are two types of agency agreements, one for rural properties and one for residential and lifestyle properties.
Be sure you are signing the correct listing authority type. For residential or lifestyle properties you should be signing a residential listing authority and for a rural property it should be the rural agreement.
We recently came across a vendor who signed a rural listing authority for a small lifestyle block and the real estate commission fee was higher than for a residential property - so it's worth checking.
Find out more about selling a farm or lifestyle block.
Got a real estate question? Call 0800 789 532 or Send Enquiry
- Wise Up NZ Awarded Most Reputable Property Advice Hub NZ 2021
- Awarded Independent Property Advisor of the Year 2023 (IPAC)
Page updated February 12, 2024 by Trish Willis | Member of Property Institute of NZ (IPAC)
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