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Our real estate commission fee

Since we launched in 2010, our mission has been to make buying and selling a property a happy experience and with 500 plus happy clients and over $400m in sales, we’re on the right track. Our leaner, tech-focused business model means we can do more of the sale process online and charge a sweet and simple commission fee of 2% of the sale price plus GST. We also charge an admin fee of $500 plus GST.

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Learn about other commission fee structures
That $8,500 in commission savings from The Property Market meant we had more to spend on our next home.”
Adam and Louise,   Auckland

How does our commission fee compare with other real estate agency commission fees?

We've compiled a list of how much commission you can expect to pay a traditional agency across various common price points.

House Price
$500k
$750k
$1m
$1.5m
The Property Market
Mike Pero
Barfoot & Thompson
LJ Hooker
Ray White
Harcourts
Professionals
Bayleys
$16,100
$17,411
$18,228
$18,400
$18,975
$20,470
$20,125
$23,000
$19,407
$23,017
$23,977
$24,150
$24,725
$26,220
$25,875
$30,187
$25,875
$28,623
$29,727
$29,900
$30,475
$31,970
$31,625
$37,375
Negotiable
$39,836
$41,228
$41,400
$41,975
$43,470
$43,125
$51,750
Lowest commission at this price
Highest commission at this price
The commission fees above are understood to be the standard real estate fees for residential sales at the time of publication. They do not take into account any regional variations, negotiated arrangements or reduced fees for smaller scopes of service. While every effort has been made to ensure that this information is correct, The Property Market does not accept responsibility for variations to these fees or their respective savings. The fees above include GST and an administrative fee where one is charged. If you’re thinking of selling, we ask that you clarify this information with the agencies listed above.
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Why are commission fees so high in New Zealand?

Getting top dollar when selling your home depends on a number of factors and chief among them is selecting the best commission fee structure for your situation. When it comes to commission fees, much of New Zealand’s real estate industry still relies on the established ‘stepped percentage’ structure. ‘Stepped percentage’ commissions aren’t just expensive, they’re also illogical from a seller’s perspective.
Why, you ask? Well, primarily because they pay the agent the highest percentage for the easiest part of the sale price. When it comes to getting buyers to part with a little more cash, the agent’s incentive drops away dramatically often along with their enthusiasm for pursuing the negotiation.

2%
commission
700+
happy customers
$400m+
property sold

What commission fee structures are there?

House prices in many parts of New Zealand have risen dramatically in recent years, meaning traditional commissions have shot up too. This seems ridiculous when the amount of work required to sell homes hasn’t changed – in climbing markets, you might even argue that an agent’s job has become easier.

The Property Market was founded on the principle of a better, more customer-focused approach to selling real estate which is why we charge a simple and transparent commission fee of 2% of the sale price plus GST.

Calculate your commission fee .

Traditional / Stepped %
Simple / Flat %
Fixed Fee
Traditional / Stepped %
Traditional / Stepped % icon
How it works
The agency charges a base percentage fee up to a certain price. This is commonly around 4% for the first $400,000 of the sale price. The percentage then reduces for the remainder of the sale price – generally to around 2%.
Upsides
Frankly, we don’t see many upsides to this way of charging commission.

The agent receives the greatest reward for the lowest part of the sale price, which is the easiest to achieve, and a reduced incentive for what they achieve at the top end of the sale price – the bit that takes the most work!
Downsides
If you accept the logic that a real estate agent’s job is to extract every last possible dollar from the buyer to get you the very best sale price, this kind of fee just doesn’t make sense.

Having earned the bulk of their fee on the ‘easy’ part of the sale price, why would an agent risk the sale falling through by pushing for a few thousand more, which would only earn them a few hundred extra dollars? The easier road for the agent is to simply close the deal, pocket their fee and move on to their next listing.
Our take
Just because it’s the status quo doesn’t make it right!

Don’t settle for a model that serves the agent better than the vendor, after all – it’s your financial future at stake.
Simple / Flat %
Simple / Flat % icon
How it works
A simple percentage fee is a flat rate that is charged on all sales, regardless of their value. These fees tend to be skinny, so most agencies will underwrite them with a minimum commission fee to ensure the sale of the property is financially viable.
Upsides
With a lean simple percentage fee you can be assured you’re not paying over the odds. And, because your agent is being paid at the same rate for the entire sale price, they’ll be just as motivated to push for the bit at the top end as they are the rest of the sale price.
Downsides
Agencies which rely solely on a small percentage fee don’t earn enough to attract skilled agents. To extract a top sales price you need a top agent with top negotiating skills – need we say more?
Our take
A simple percentage fee only really works if the agency is generating enough revenue to attract skilled agents. With that in mind, we wholeheartedly recommend a lean fee, but only if it’s backed up by a fair minimum commission.
Fixed Fee
Fixed Fee icon
How it works
As the name suggests, fixed fee commissions put an upfront price on the effort needed to sell your home. The thinking is that the work to sell a one bedroom unit in Henderson is no different to what’s required to sell an eight bedroom estate in Remuera.
Upsides
If you like dealing in ‘known quantities’ then this kind of fee is likely to appeal – you know exactly what you’re in for commission-wise and can budget accordingly.
Downsides
We would argue that in most property sales there will be an element of negotiation and, if your agent’s cut isn’t dependent on what the property sells for, there is little incentive for them to push for a higher sale price.
Our take
To our way of thinking, a fixed fee means your agent won’t be working to get you top dollar. We think even an extra $500 is worth haggling for, so the fixed fee approach simply doesn’t sit well with us. What’s more, if you’re looking at a quick and easy sale or a low cost property, the fixed fee is likely to feel expensive because it’s designed to cover all values and levels of difficulty. On the other hand, if your property will take more effort to sell, you’re unlikely to get top dollar as the agent will want to complete the sale and move on to the next listing.
Who are we?

Who are we?

We’re proven real estate agents who don’t cost the earth.

We’ve sold over $400m of property and we’re building a strong business that does great work for our clients. We’re fully licensed and we offer the same range of services as the big real estate agencies.

  • Proven sales track record
  • $400 million plus of property sold
  • Powerful marketing package including your property’s own website
2%
commission
700+
happy customers
$400m+
property sold
What does our commission fee cover?

What does our commission fee cover?

  • Your own licensed salesperson focused on the sale of your property
  • Flexible agency contract with no fixed terms
  • Open homes, viewing and buyer negotiations
  • 7 day a week support, buyer feedback and campaign reporting
  • Experienced local expert assigned to your property until it’s sold
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