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The Cost of Selling a House

General information, not legal advice. Selling a property in New Zealand turns on the exact wording of the documents you sign, and this guide describes how the process generally works rather than what your agreement says. Have a property lawyer read any agency agreement and any sale and purchase agreement before you sign it, not after. That review costs far less than either document going wrong. If you have a problem with a licensed agent, the Real Estate Authority runs a free complaints process, and settled.govt.nz is its independent consumer guidance.

💵 Sale Price Is Not What You Keep

The number that matters when you sell is not the price on the agreement. It is what lands in your account after everyone has been paid and your mortgage has been discharged. The gap between those two numbers is larger than most people expect, and it is entirely predictable, which means you can work it out before you list rather than discovering it at settlement.

Key point: Net proceeds equals sale price, less commission and marketing, less legal fees, less any repairs and presentation, less the balance of your mortgage and any break cost. Every one of those is knowable in advance to within a small margin.

The net sale proceeds calculator puts the whole chain in one place.

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🏦 Commission and Marketing

If you sell through a licensed agency, commission is usually the single largest cost, and it is charged on the sale price rather than on your equity. On a typical New Zealand sale it is a tiered percentage: a higher rate on the first portion of the price and a lower rate above it, plus GST.

Commission is negotiable, and so is the structure: Not just the percentage. The tier boundary, the fixed administration fee, and whether marketing is included can all be discussed before you sign. The time to do it is before the agency agreement is signed, because afterwards the terms are set.

Marketing is usually separate

Vendor-paid advertising is the New Zealand norm: the marketing campaign is generally your cost, agreed in the agency agreement, and in most cases it is payable whether or not the property sells. That is the part that surprises people, so read what happens to marketing costs if the campaign ends without a sale.

  • Portal listings, which are the largest single line for most campaigns.
  • Photography, floor plans and video.
  • Signage and print.
  • Staging or furniture hire, if you use it.

Compare structures with the real estate commission comparison calculator and test what a negotiated rate is worth with the commission negotiation savings calculator.

⚖ Legal and Settlement Costs

You need a lawyer or conveyancer to sell. They prepare and check the agreement, hold or account for the deposit, arrange the discharge of your mortgage, calculate the apportionment of rates and complete the electronic transfer of title. This is not optional and it is not expensive relative to the transaction.

ItemWhat it covers
Conveyancing feePreparing and completing the sale
Mortgage dischargeRemoving your lender's security from the title
Rates apportionmentSplitting rates between you and the buyer at settlement
DisbursementsRegistration, searches and similar third-party costs

Estimate this line with the conveyancing fee calculator, and see the settlement apportionment calculator for how rates are split.

🔧 Preparation, and Knowing When to Stop

Presentation spending is the least disciplined part of most selling budgets, because it has no natural ceiling. There is always another room that could be painted. The test for any given job is whether it returns more than it costs, and for most work the honest answer is that it does not.

Usually worth doing

  • Cleaning, decluttering and removing excess furniture.
  • Small repairs that a buyer would otherwise notice and price against you.
  • Garden tidy-up, because it is cheap and it is the first thing seen.
  • Fixing anything that a building inspection would flag as a defect rather than wear.

Rarely worth doing before a sale

  • A new kitchen or bathroom, which almost never returns its cost on a sale.
  • Structural work that a buyer may want done differently.
  • Anything requiring consent that would not be finished before settlement.
Unconsented work is a cost either way: If you do work that needed consent and did not get it, that becomes a problem at sale time, because the agreement contains a warranty about consented work. Fixing it late is more expensive than doing it correctly, and hiding it is worse than both.

📈 The Costs That Catch People Out

Four costs sit outside the obvious list and account for most of the difference between what people expect and what they receive.

Break cost on a fixed mortgage, set by your lender on the day
Marketing payable even if the property does not sell
Tax under the bright-line rules if you sell inside the period
Carrying costs if the property takes longer to sell than planned

The last one is quiet and continuous. While the property is on the market you are still paying the mortgage, rates, insurance and maintenance, and if you have already bought elsewhere you are paying twice. The holding cost while unsold calculator turns that into a weekly figure.

Work in net, not gross: Two offers can look different on price and be nearly identical once conditions, settlement dates and carrying costs are counted. Comparing net outcomes rather than headline prices is the single most useful habit a seller can have.

🎯 Test Your Knowledge

Quiz on The Cost of Selling a House in NZ (10 Questions)

1. Net proceeds means:
The sale price
The sale price less all costs and the mortgage
The rateable value
The deposit
2. Real estate commission in New Zealand is:
Fixed by law
Set by the Real Estate Authority
Negotiable
The same at every agency
3. Vendor-paid advertising usually means:
The agency pays for marketing
You pay for marketing
The buyer pays for marketing
Marketing is free
4. If the property does not sell, marketing costs are usually:
Refunded
Still payable by you
Paid by the agency
Added to the next campaign
5. A lawyer is needed when selling because:
It is optional but polite
They complete the transfer and discharge the mortgage
They set the price
They run the open homes
6. Rates apportionment at settlement means:
The council refunds you
Rates are split between seller and buyer
Rates are cancelled
The buyer pays all rates for the year
7. Which is usually worth doing before selling?
A new kitchen
Structural alterations
Cleaning and small repairs
A full renovation
8. Unconsented work matters at sale because:
It is always illegal
The agreement contains a warranty about consents
Councils inspect every sale
Agents refuse the listing
9. A carrying cost is:
The removal van
What you pay while the property is unsold
The agent's petrol
The deposit
10. The best way to compare two offers is:
Headline price only
Whichever is fastest
Net outcome after conditions and timing
The one the agent prefers

Related guides

Official New Zealand sources

The rules described on this page come from these bodies. Each link goes to the page used, and each was checked on 15 August 2026.

This guide explains how the rules work. It is not legal advice about your own sale, and a property lawyer should review any agreement before you sign it.