Commission is usually the largest selling charge
If an agency sells your property, commission is normally calculated from the sale price. Before you sign, the agency must explain the commission, when it is payable and the estimated dollar amount at the appraised price. The agreement should also say whether GST is included. These requirements are set out in the Real Estate Authority's guidance on agency agreements.
Administration fees and vendor-paid advertising may sit outside the commission. Use the written agency agreement and marketing proposal rather than assuming one agency's structure applies to another. If you are comparing proposals, the New Zealand commission guide explains the common fee structures.
Marketing costs depend on the campaign you approve
Marketing may include photography, online advertising, signs, print material and other activity proposed for your property. The agency must explain what it provides as part of its service and what it will charge you separately.
Ask when each expense is payable and what happens if the property does not sell. The government's selling finances guide says you may still have to pay agreed marketing costs if the property does not sell.
Legal work belongs in the budget
A lawyer or conveyancer can review the sale and purchase agreement, check the title and manage the legal work through settlement. Consumer Protection recommends involving them before you sign the agreement. Engage them early and ask for a quote based on your circumstances.
Do not treat a generic online allowance as a quote. The calculator below starts legal costs at zero so you can enter the figure supplied by your own adviser. Complex ownership, trust, relationship-property or finance arrangements may require more work.
Choose preparation work carefully
Repairs, cleaning, gardening, storage, staging and reports can all add to the cost. What is worth doing depends on your property, its known issues and likely buyers. Separate work that needs doing from changes that only make the home look better.
If you provide a LIM or building report, add its real cost. Ask your agent and lawyer how to handle known property issues before spending money on cosmetic work. The property documents and disclosure guide can help you prepare that conversation.
Mortgage repayment is not the same as the balance on screen
Your estimated proceeds need to allow for repayment of lending secured against the property. Ask the lender for the amount and process that will apply at settlement. A current app balance may not include every adjustment, fee or timing effect.
If you are buying before selling, or settlements do not align, temporary lending, storage or accommodation may add costs. Discuss lending scenarios with the lender or adviser before relying on them.
Check whether tax may apply
Many main-home sales are outside the bright-line test, but other property tax rules can still apply. For property sold on or after 1 July 2024, Inland Revenue says the bright-line period is two years. The answer depends on how you owned and used the property.
Use Inland Revenue's property tax tool or get tax advice if the home was bought recently, rented, subdivided, transferred, owned through a company or trust, or bought with the plan to sell it.
Tax is not a standard line item for every seller, so do not add an arbitrary allowance. Find out whether it applies to your sale and use advice that reflects your ownership and property history.