Start with the written dollar estimate
Before you sign, the agent must give you written details of how commission is calculated, the conditions under which it is payable and an estimated dollar amount. The estimate should use the appraised sale price rather than a convenient hypothetical number. These requirements are explained in the Real Estate Authority's agency agreement guidance. Check whether every written figure includes GST.
This matters because two percentages may use different structures. One proposal may apply a single percentage to the whole sale price. Another may charge one rate on an initial tier and a lower rate on the balance. A fixed fee or administration charge may also apply. Do not compare the headline percentage until you know the full formula.
Use the same possible sale prices, fixed charges and GST treatment when comparing every proposal. If the structures are hard to line up, put them through the commission comparison calculator.
Commission and marketing are often separate
The agency agreement should make clear what advertising is included in the agency's service and what you must pay for separately. Vendor-paid marketing can include items such as photography, online promotion, print material or other campaign activity, depending on the proposal.
Ask for a marketing plan showing what each expense buys and when payment is due. The official guidance on signing an agency agreement notes that you may still have to pay agreed extra marketing costs if the property does not sell.
Ask for an itemised budget, the payment date for each item and the approval process for changes. Also ask who owns or may reuse the photography, floor plan and video after the campaign. A package total is difficult to compare if the promised deliverables and reuse rights are unclear.
Put every proposal on the same GST basis
Inland Revenue confirms that New Zealand's current GST rate is 15 percent. The agency's written figures should make their GST treatment clear. Record each proposal as GST-inclusive or GST-exclusive before comparing it.
A proposal that says “2 percent plus GST” is not the same dollar amount as one that says “2 percent including GST”. The calculator below can compare either treatment once you enter it correctly, but the signed agency agreement remains the authority.
Check rebates, discounts and campaign incentives
If an agent receives a rebate, discount or commission connected with an expense you pay, the Real Estate Authority says it must be disclosed in the agency agreement. The disclosure should identify the source and actual or estimated amount, or state that none will be received.
Keep that disclosure beside the marketing budget. It lets you see the amount you pay, the service supplied and any benefit received by the agency as separate facts. Ask for an updated written figure if the campaign scope or supplier changes.
Understand when commission could still be payable
The agreement must state when commission becomes payable and the circumstances in which it may be due after the agreement ends. A buyer introduced during the agency term can matter later, and overlapping agency agreements can create a risk of two commission claims.
Settled's current guidance on ending an agency agreement says to check the stand-down period and obtain legal advice before changing agencies. Ask whether the agency uses the standard clauses recommended by REA, which provide certainty about when an agency ends and when commission needs to be paid, and reduce double-commission risk.
Do not rely on a verbal assurance that a previous introduction will not count. Have your lawyer review the actual agreements, buyer-introduction information and relevant dates when there is any overlap or uncertainty.
A lower fee does not describe the service
Commission is important because it reduces the amount left after the sale. But a dollar comparison does not tell you how an appraisal was supported, who follows up buyers, how the campaign is adjusted, who negotiates or how often you receive useful feedback.
Compare cost and service separately. First calculate the total at realistic sale-price scenarios. Then use the agent worksheet to compare the evidence, work and accountability behind each proposal. The guide to what differs between real estate agents gives you the questions to ask.
Record who will be your day-to-day contact, who attends viewings, how buyer enquiries are followed up, how often reporting arrives and what triggers a campaign review. These commitments are easier to assess when they are written beside the fee rather than left as meeting impressions.