New Zealand Real estate agents’ commissions are a major factor in choosing an agent to sell your home in New Zealand. Commissions for agents come in two flavours: a percentage of the sale price of the property, or a fixed fee sale.
Real Estate Agents Act 2008
“The purpose of the Act is to promote and protect the interests of consumers and promote public confidence in the performance of real estate agency work. New Zealand agents must abide by the rules set down in this act and face strict requirements and training.
How Most Real Estate Agents Are Paid?
Depending on the type of property you’re looking to sell and what its current market value is, you might find that a fixed commission with a company like Tall Poppy or Arizto Real Estate could save you a lot of money.
But then again even agents like Property Brokers and Bayleys Real Estate have been known to discount their fees to secure a listing. Real estate agents Auckland are probably more competitive than in the regions due to competition.
Either way, your goal is to get the most bang for your buck from your local agent and some agents sometimes offer extra incentives like a special advertising package to promote your property. That might make it worth paying a larger commission compared to a fixed fee agency.
It’s also a good idea to check out sources like rate my agent and see what sort of feedback sellers are giving the agents who are selling their homes. Rate my agent is an excellent tool for this.
What Real Estate Agents Make The Most?
Well, that is a hard question to answer but as real estate prices have risen steadily, there are a number of agents making over $1 million in New Zealand. From some reports, these agents are in the big cities like Auckland and Wellington.
But even in the regions I have heard reports of agents easily making over $250,000 a year. Some making far more than that. According to the Ministry of Business, Innovation and Employment, $84,500 a year is the average income for agents in New Zealand.
Real Estate Agents
Some agents take very good care of their clients, helping them secure the sale of their property through great negotiating skills and looking after any issues that may come up along the way, which is to be expected.
These are the salespeople that should be on your real estate agents list. Other agents may not be as caring and knowledgeable about the market, and may just look at the property as a side business.
A full-time agent is more likely to be committed to selling your home. Creating a real estate agents database is always an option but so many move in and out of the business it’s just about impossible.
An important part of the sales process is making sure you get your property valued by several different agents. This is a great way to ensure you get what your property is actually worth.
But if you have a unique property then an experienced agent who knows the auction and tender process may be better to work with. Make sure you ask about how long the agent has been in business, how they generate their income and whether or not you can use them to help you sell your home.
One thing for sure is that simply trusting a recommendation from a friend is not always the best decision.
You should also play your cards close to your chest and never tell a real estate agent what price you are expecting to get for your home when you have asked them to give you a valuation.
Not all agents are honest and there are always a few unscrupulous agents who will take advantage of what you tell them. Neither do you want to influence the valuation an agent might give you?
Some will simply accept the price you want so they can secure the listing and then beat you down to a more realistic selling price later. And after all, you probably don’t want your property sitting on the market month in and month out at some unrealistic price.
It’s also never a good idea to tell an agent why you are selling even if you are desperate for a sale. Just tell them it’s time for a change of scenery.
There is the odd agent that will use it against you and perhaps even unwittingly infer this to a buyer and you will find yourself being low-balled with every offer you get. Word spreads fast!
Just remember that when you are looking for an agent to sell your home, we all tend to want to deal with people we like and feel comfortable with.
It’s only natural, but that doesn’t mean that even the nicest real estate agent in the world has what it takes to sell your home and get the best possible price in the shortest length of time.
It’s best to find someone that is confident and enthusiastic along with some experience in the business. They also need to be tech-savvy because real estate has changed a lot over the years and just about every buyer these days searches online for their real estate listings!
So the agent needs to understand online real estate marketing.
Real estate agents and covid vaccine can be a difficult subject when it comes to dealing with the public, especially in open homes. Ultimately it comes down to the choice of the vendor to allow unvaccinated people into their home during an open home.
The Real Estate Authority advises agents here https://www.rea.govt.nz/news/covid-19/ for the various levels.
It’s always worth getting to know the salesperson and the business model of the agency is also important. If the salesperson tries to talk you into something that the agency does not have any experience with, like auctions, then you could lose a lot of money in the long run. Harcourts. Bayleys.
Most agents get paid on a commission basis, so keep that in mind when selling your home, but finding a good real estate agent in New Zealand is not that difficult, there are plenty of good agents around if you know what you are looking for.
About the Author
Steve Baron is the Founder & CEO of MyMansion.co.nz. He is a former successful agent and property investor when based in Auckland and formerly the Managing Director of Baron Marketing Ltd, an advertising company he founded and ran for over 20 years.
He is a past mentor for Business Mentors NZ and holds a Bachelor of Arts Degree from the University of Waikato Majoring in Economics & Political Science. He also holds an Honours Degree from Victoria University of Wellington in Political Science.
He is a published author of three books and a prominent guest editorialist for newspapers throughout New Zealand. In his spare time, Steve is the Clerk of the Scales for New Zealand Thoroughbred Racing, is a Bridge Grandmaster and enjoys walking, running and cafes.