1. What is the Commission Calculation?

The Real Estate Commission Calculator NZ calculates the total commission payable on a property sale in New Zealand, including GST. The standard commission rate is 3.95% of the sale price plus 15% GST on the commission amount.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( Sale\ Price \) — The property sale price in NZD
• \( 3.95\% \) — Standard commission rate
• \( GST \) — 15% of the commission amount

Explanation: The calculator first calculates 3.95% of the sale price, then adds 15% GST on that amount to get the total commission payable.

3. Importance of Commission Calculation

Details: Accurate commission calculation is crucial for both real estate agents and property sellers to understand the exact costs involved in a property transaction.

4. Using the Calculator

Tips: Enter the property sale price in NZD. The calculator will show the base commission, GST amount, and total commission payable.

5. Frequently Asked Questions (FAQ)

Q1: Is the commission rate always 3.95%?
A: While 3.95% is standard, commission rates can vary between agencies and may be negotiable depending on the property and market conditions.

Q2: Is GST always included in commission?
A: Yes, in New Zealand, GST (15%) is always added to real estate commission fees.

Q3: Are there other fees besides commission?
A: There may be additional fees for marketing, photography, or administrative costs, depending on your agreement with the agency.

Q4: Can I negotiate the commission rate?
A: Yes, commission rates are often negotiable, especially for high-value properties or in competitive markets.

Q5: How is the commission paid?
A: Commission is typically deducted from the sale proceeds at settlement and paid directly to the real estate agency.