Start with the written dollar estimate
Before you sign, the agent must explain how commission is calculated, when it becomes payable and the estimated dollar amount at the appraised sale price. These requirements are set out in the Real Estate Authority's agency agreement guidance. Check whether the 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.
Use the same possible sale prices 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.
Check GST before comparing totals
Inland Revenue confirms that New Zealand's current GST rate is 15 percent. GST applies to an agent's commission, so check whether each quoted figure includes or excludes 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 handles either treatment, but the written proposal remains the authority.
Look for rebates and discounts
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.
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.