Selling Your House Privately vs Using an Agent
🏡 The real decision when you sell
When you sell your home in New Zealand you have two main paths. You can use a licensed real estate agent, who markets the home, runs the campaign, negotiates and is paid a commission, usually a tiered percentage of the sale price plus GST, often with marketing costs on top. Or you can sell privately, listing the home yourself on a property portal, paying for your own photography and marketing, running your own viewings and doing your own negotiation, while still using a lawyer or conveyancer and a proper sale and purchase agreement. The choice is really a trade-off between cost and effort, and between the reach and consumer protections an agent brings versus the money you keep by doing it yourself. This guide walks through both paths, the rules that apply, and four worked examples that show how the numbers compare. Commission rates and marketing and listing costs vary by agency, region and property, and every dollar figure here is illustrative, so use them as a way to think rather than a fixed quote.
What each path involves
| Task | Using an agent | Selling privately |
|---|---|---|
| Pricing and appraisal | Agent provides a market appraisal | You research recent sales yourself, or pay for a valuation |
| Marketing and listing | Included in the campaign, often with an extra marketing charge | You pay a portal listing fee and arrange your own photos |
| Viewings and open homes | Agent runs them | You run them |
| Negotiation | Agent negotiates on your behalf | You negotiate directly with buyers |
| Legal work | Your lawyer, separate from the agent | Your lawyer, same as with an agent |
| Main cost | Commission plus GST, plus marketing | Listing fee, photography and your time |
Whether you use an agent or sell privately, you still need a lawyer or conveyancer to handle the sale and purchase agreement and settlement. Legal fees are broadly similar on both paths, so when you compare net proceeds, the real difference is the agent's commission and marketing versus your private listing and photography costs.
💼 Using a licensed real estate agent
A licensed agent takes on the whole campaign: appraisal, marketing, viewings, negotiation and managing the sale through to settlement. In return they charge a commission, and the way that commission is structured matters as much as the headline rate.
How commission is structured
Most agencies charge a tiered commission: a higher percentage on the first slice of the sale price and a lower percentage on the balance, plus GST of 15 percent on the commission. Some agencies use a flat percentage instead. Rates are not set by law and are negotiable, and they vary by agency and region. One common illustrative structure is around 4 percent on the first $300,000 and around 2 percent on the balance, plus GST. Always confirm the actual structure in writing with the agency you choose.
GST adds 15 percent to the commission, so a $23,000 base commission actually costs $26,450. On top of commission, many agencies charge a separate marketing or advertising amount, often several hundred to a few thousand dollars, which you usually pay whether or not the home sells. Ask for the total expected cost in writing before you sign.
Commission is negotiable
There is no legal standard rate. Commission is negotiable, and you have the most leverage on higher-value or easy-to-sell homes, and when you have quotes from several agencies. Interviewing three or four agents and comparing their proposed rate, marketing plan and recent results is normal and expected.
The Real Estate Agents Act framework
Agents are licensed and regulated under the Real Estate Agents Act 2008, overseen by the Real Estate Authority (REA). This framework is the main protection you and your buyer get from using an agent, and it comes with specific obligations.
- A written agency agreement is required before the agent does the work or can be paid commission, and the agent must give you a copy within 48 hours of it being signed.
- You must be given the REA approved agency agreement guide before you sign the agency agreement, and you confirm in writing that you received it.
- Sole agency cancellation: you can cancel a sole agency agreement by 5pm on the first working day after you receive your copy. If an agent approached you unsolicited, you may cancel within 5 working days.
- Disclosure of benefits: a licensee must disclose in writing if they, or anyone related to them, may benefit financially from the transaction, for example if they or a relative want to buy your home.
- Complaints process: the agency must have an in-house complaints procedure, and you can also complain directly to the REA without using it first.
A sole agency gives one agency the exclusive right to sell for a set period. A general agency lets more than one agency market the home, with commission going to whoever sells it. Sole agency is the most common, and it usually comes with the cancellation protections above. Read the term and the cancellation rules before you sign.
What you are paying for
The commission covers the agent's appraisal, their marketing reach across the major property portals and their buyer network, running viewings and open homes, negotiating offers, and managing the deal to settlement. The argument for an agent is that this reach and negotiation can achieve a higher sale price and a faster, less stressful sale. The argument against is that the market sets the price, and on a straightforward home in a strong market you may be paying a large fee for work you could do yourself.
🔑 Selling privately
Selling privately means no agent and no commission. You list the home yourself, market it, run viewings, negotiate directly with buyers, and use a lawyer for the paperwork. You pay only for the services you choose to use.
The costs of a private sale
| Cost | Typical illustrative amount | Needed? |
|---|---|---|
| Portal listing fee | Several hundred to over a thousand dollars | Yes, for reach. Priced by the property value band and region |
| Professional photography | $300 to $600 | Strongly recommended |
| Signage and sundries | $100 to $400 | Helpful for passing interest |
| Lawyer or conveyancer | $1,500 to $3,000 or more | Yes, and also needed if you use an agent |
The major property portals charge an upfront fee to list a home for sale, in packages priced according to the property value band and region, and with no success fee when it sells. Premium placement and extras cost more. Each portal sets and updates its own fees, so check the current price with them before you budget. In the examples in this guide we use an illustrative figure of around $1,200.
You still need a lawyer and a sale and purchase agreement
A private sale is still a legal property transaction. The sale and purchase agreement is a binding contract, and getting it wrong can be very costly, so a lawyer or conveyancer is essential. They prepare or review the agreement, handle the deposit and any conditions, and manage settlement. Selling privately saves the commission, not the legal work.
The protections and reach you give up
When you sell through a licensed agent, both you and your buyer are covered by the Real Estate Agents Act 2008 and its Code of Conduct, with the REA providing an independent complaints and disciplinary process. In a private sale there is no licensed agent, so those specific protections and that disciplinary avenue do not apply to the transaction. You also give up the agent's marketing reach and buyer database. That said, some rules still protect everyone:
- The Fair Trading Act 1986 still applies to you as a private seller, so you must not mislead buyers or make false claims about the property.
- The sale and purchase agreement is still a binding legal contract, enforced through the ordinary law, with your lawyer protecting your position.
- A buyer can still do their own due diligence, such as a LIM report, a builder's report and their own legal advice, regardless of who is selling.
The main risk of a private sale is not the paperwork, which your lawyer handles, but reaching enough of the right buyers and negotiating well. If a private sale attracts fewer buyers, or you accept the first offer without competitive tension, you can end up selling for less than an agent would have achieved, which can wipe out the commission you saved.
When a private sale tends to work
- A hot market with strong demand, where buyers come easily and competition builds itself.
- A motivated private buyer already lined up, such as a neighbour, a tenant or someone who has seen and wants the home.
- A confident, capable vendor who is comfortable running viewings, fielding calls and negotiating.
- A straightforward, easy-to-sell home in a desirable area and good condition.
When an agent tends to earn their fee
- A slow or uncertain market, where marketing reach and negotiation skill matter most.
- A home that needs a campaign to find the right buyer, or that has features a buyer pool needs to be found for.
- A time-poor or nervous vendor who values having the process managed.
- Competitive tension, where an agent running a deadline or auction campaign can lift the price beyond what a single private buyer would offer.
🔢 Worked examples
These four examples compare net proceeds. They use an illustrative commission of 4 percent on the first $300,000 and 2 percent on the balance plus GST, illustrative marketing and listing costs, and they leave out legal fees because a lawyer is needed on both paths. Real rates and costs vary by agency, region and property.
Situation: The Wilsons are selling a tidy family home in a popular suburb, and demand is steady. They compare an agent campaign with selling privately on a portal.
Agent route:
Private route:
Situation: Priya is selling a higher-value home. The dollar commission is large, which increases the potential saving from a private sale, but higher-value buyers often expect a professional campaign.
Agent route:
Private route:
The dollar saving is larger on higher-value homes, but so is the downside if a private sale attracts fewer serious buyers. On a premium home, competitive tension between buyers can matter a lot, which is where a well-run campaign can justify its cost.
Situation: Tama is selling a modest home in a smaller town. On lower-value homes, commission is a larger share of the price, so the saving from selling privately is proportionally big.
Agent route:
Private route:
Situation: The Coopers have a sought-after home in a rising market. Privately, they would likely accept the first keen buyer at $840,000. An agent runs a deadline campaign that draws several buyers into competition and achieves $880,000.
Agent route at $880,000:
Private route at $840,000:
When an agent genuinely lifts the price through competition and negotiation, the higher sale price can more than cover the commission. Here the extra $40,000 achieved outweighs the $29,640 cost, so the Coopers net about $12,360 more than a quick private sale. The lesson runs both ways: a private sale only wins if it achieves close to the price a good campaign would have.
Work through your own numbers with these calculators and guides:
Verified July 2026 against: rea.govt.nz (agency agreements, the requirement for a written agreement and a copy within 48 hours, sole agency cancellation by 5pm the first working day, the 5 working day rule for unsolicited approaches, and the agency agreement guide); the Real Estate Agents Act 2008, including the disclosure of benefits under section 136 (legislation.govt.nz); settled.govt.nz and consumerprotection.govt.nz (seller guidance and consumer protections); and the property portals themselves (listing fees and packages). Commission rates, marketing charges and listing fees vary by agency, region and property, and all dollar figures here are illustrative.
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