What Does It Cost to Sell a House in New Zealand?

Agent commission: the big one

Real estate agent commission is typically the largest selling cost and is almost always negotiable. The standard commission structures in New Zealand are either a percentage of the sale price or a tiered rate.

Common structures include a flat percentage (typically 2–3.5% of the sale price) or a tiered structure where you pay a higher rate on the first portion of the price and a lower rate above that threshold. For example: 4% on the first $300,000 and 2% on the remainder. On an $850,000 property that works out to ($300,000 × 4%) + ($550,000 × 2%) = $12,000 + $11,000 = $23,000. A flat 2.5% rate on $850,000 gives $21,250.

Commission is GST-exclusive in most agency agreements — so add 15% to the quoted rate. Always ask for the GST-inclusive figure when comparing agents.

Commission is almost always negotiable, particularly in slower markets or for properties likely to attract strong buyer interest. Agents competing for listings are generally willing to sharpen their commission. It's worth getting quotes from two or three agents before signing an agency agreement.

Marketing costs

In New Zealand, vendors typically pay for marketing upfront and separately from commission. This is different from some other markets where marketing is bundled in. Standard marketing packages include:

• Listing on Trade Me Property and realestate.co.nz (mandatory for reach — combined cost typically $600–$1,500 depending on listing tier and duration)
• Professional photography and potentially video or 3D virtual tour ($500–$1,500)
• For Sale board and flyers ($200–$400)
• Print advertising (increasingly optional — digital-first campaigns are now standard, but some agents still push print. Budget $500–$2,500 if used)
• Agency-specific marketing (social media promotion, email database, etc.) — often included in the base package

A typical marketing budget for an average-priced property runs $2,500–$6,000. Premium properties in competitive markets may see vendors spend more, particularly on elevated digital presence or high-production video.

Marketing costs are generally payable regardless of whether the property sells. If the listing expires without a sale, you've still incurred the marketing spend. Make sure you understand what's included and what you're liable for before signing.

Legal fees

You'll need a solicitor or conveyancer to handle the title transfer, discharge of your mortgage and settlement process. Vendor legal fees on a standard sale typically range from $1,200 to $2,000, depending on the complexity of the transaction and your solicitor's hourly rate. Leasehold properties, properties with complex easements or caveats, or transactions with unusual conditions can push this higher.

Your solicitor will also coordinate the discharge of your mortgage with your bank. If you're purchasing simultaneously, both transactions can often be handled by the same solicitor, which may save on fees.

Pre-sale repairs and presentation

Many vendors spend money preparing a property for sale — fixing deferred maintenance, freshening up paintwork, tidying landscaping. This is discretionary and highly variable. Some vendors spend nothing. Others spend $10,000–$30,000 on a targeted pre-sale renovation.

The general principle is to address anything that would put buyers off (deferred maintenance, visible damage, dated fixtures in key rooms) without over-capitalising. A freshly painted interior and tidy garden typically deliver a better return than a kitchen renovation. Ask your agent what buyers in your target market are looking for — they'll have a view on what's worth doing based on recent comparable sales.

Staging

Staging — furnishing and styling a property for marketing — has become increasingly common in New Zealand, particularly for vacant properties. A professionally staged property typically photographs better and helps buyers visualise how rooms can be used. The cost varies significantly depending on the size of the property and duration of the campaign, but expect $1,500–$6,000 for a typical residential property. Larger or premium properties can run higher.

Whether staging is worth it is genuinely debated. Evidence suggests it can improve sale price and time on market for well-priced properties in active markets. In slower markets, or where the property has structural issues that staging can't mask, the benefit is less clear. Talk to your agent about whether your specific property and market conditions make staging a good investment.

Mortgage discharge and any break fee

When you sell, your existing mortgage is repaid from the proceeds. Your bank will charge a mortgage discharge fee (typically $150–$350) to remove the mortgage from the title. If you're in a fixed rate term, you may also face a break fee — which can be substantial depending on how long remains and the current rate environment. Check your break fee before you list, particularly if you're planning to sell mid-fixed-term.

A worked example on an $800,000 sale

Net proceeds after selling costs: $800,000 − $39,600 = $760,400. Then subtract your outstanding mortgage to get what actually goes into your pocket.

The number that actually matters: net equity

The sale price minus selling costs gives you gross net proceeds. Subtract your outstanding mortgage balance and you get your net equity — the actual amount of money you walk away with. This is the number that determines what you can put toward your next property, invest or use for other purposes.

Knowing this number in advance, rather than discovering it at settlement, lets you plan your next purchase with realistic numbers in hand. If the net equity is different from what you expected — perhaps because a break fee was larger than anticipated or the sale price came in below target — you want to know that before you've committed to a purchase contract on the next property.

Costs listed are indicative only and will vary significantly by location, agent, property type and market conditions. Always get specific quotes from your agent, solicitor and bank before making decisions based on these figures.