Before you contact real estate agents, it is important to understand all the real estate agent fees, commission, administration and marketing costs. Here you can find out all this without pressure first, then be more equipped and prepared to engage in conversations directly with real estate agents and companies.
The only other place you can find out about real estate fees is with agencies directly but many home sellers want independent advice and information before they are drawn into the fold which often comes with pressure to list.
There is also a genuinely independent property and real estate specialist in New Zealand where you can find out about real estate commission and fees so you can go into the process with your eyes open. This award winning service also independently vets real estate agents for home sellers, all at no cost.
If you're unsure and need help, call us on 0800 789 532 for impartial, free advice.
Calculating Real Estate Fees, Marketing & Advertising Costs
Having a decade of service and independent advice to prospective home sellers, we have done the research, analysed the issues and can provide you with practical ways to prevent incurring unnecessary real estate fees and keep your expenses to a minimum.
Here, we also include some help about how to achieve the highest sale price, putting you at greater advantage than others in your area, in your price range. But first, learn more about:
- 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 trips to avoid
- How to avoid paying double commission and when you are at risk of this occurring
Many home sellers are not aware of the extent of compliance, responsibilities and obligations of real estate agents and companies. Our research highlights just what these entail here:
- Examples of real estate agents' expenses and legal responsibilities and real estate company compliance.
Legal Clause avoids double commission fees
Until it happens, most people don't realise that this is even a problem so it certainly hits hard when it does.
Real Estate Commission disputes are often referred to the Real Estate Authority for their complaints process. However, this path can be avoided if you know what the potential problem is and how to avoid it.
Find out how much your real estate commission fees will cost
Circumstances that can incur double real estate fees
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 a new or the same company), you need to be aware of the risk of paying two commissions (one to the first agent and one to the new agent).
When the first listing contract ends, that is 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.
Clause prevents double real estate commission issue
There have been grey areas around this issue and as a result, a new legal clause was introduced in November 2015 and recommends that when signing an agency agreement to sell a property, the clause should be included and initialed.
Double commission pitfall: Prevention is better than the cure
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 be sure that you list with a vetted real estate agent who can sell your property first time around. This can make a substantial difference.
2. If you are in the unfortunate position of having to re-list 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 named parties from the listing agreement you enter into with them.
3. If you find a real estate agent does not want to include this, you might want to reconsider using a vetted agent.
Two clause types - make sure you have the right one
There are two types of clauses, one for rural properties and one for residential and lifestyle properties.
Be mindful that 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, you should sign 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 is worth checking.
Got a real estate question? Call 0800 789 532 OR Send Inquiry
You might also like:
- Where to find the best real estate agents in NZ
- Top 10 tips that help sell properties faster
- The hidden costs of not selling first time around
Page Updated: March 2020 | About