THE QUESTION SELLERS AREN’T ASKING: WILL YOU LOWER YOUR COMMISSION?
A US survey suggests many home sellers never ask agents to reduce their fees — even though those who do often report success. Could New Zealand and Australian homeowners also be leaving money on the table?
For many homeowners, selling a property involves some serious bargaining.
They negotiate the sale price. They weigh up conditions. They question repair requests. They debate settlement dates.
But there is another negotiation that can happen before the property even reaches the market: the agent’s commission.
New research from the United States suggests many sellers are skipping that conversation altogether.
An August report by Real Estate News, drawing on research from agent-matching company Clever Real Estate, found that only 33% of sellers who used an agent asked for a lower commission. Among those who asked, 93% reported receiving a reduction. realestatenews.com
That is an attention-grabbing result. It also raises an obvious question for homeowners on this side of the world:
Are New Zealand and Australian sellers accepting the first commission proposal when they could be discussing a better deal?
The American findings cannot answer that question directly. But they provide a useful reason to examine how sellers choose an agent — and what they should ask before signing.
WHAT THE AMERICAN RESEARCH ACTUALLY FOUND
Clever surveyed 500 Americans who had sold a home they lived in within the previous two years. The survey ran from 10–14 July 2026, and 366 respondents had used a real estate agent.
Among the agent-using sellers, 33% said they negotiated their commission, 56% did not ask, and 11% used a brokerage offering a set discounted fee.
Of those who secured a reduction, 90% reported a cut of at least half a percentage point, while 45% reported a reduction of at least one percentage point. Clever Real Estate
There are important limits to those findings.
They are self-reported experiences from a particular survey, rather than proof that almost every seller will obtain a discount. Clever also operates a commercial service connecting consumers with agents offering discounted commissions.
The results do not establish how much room any individual agent has to negotiate, whether services changed alongside the fee, or whether the seller achieved a better overall financial result.
Nevertheless, the central finding is useful: a sizeable group of sellers never tested whether the quoted fee was flexible.
CAN YOU NEGOTIATE REAL ESTATE COMMISSION IN NEW ZEALAND?
Yes.
New Zealand’s official consumer property website, Settled.govt.nz, explicitly says sellers can negotiate the terms of an agency agreement, including its timeframe, commission and expenses. It also reminds sellers that the agreement is legally binding and should be understood before signing. Settled.govt.nz
That makes the period before signing especially important.
A commission proposal is something to examine and discuss. Sellers can ask how the fee is calculated, what it covers and whether there is flexibility.
Useful questions include:
- Is the commission a flat percentage, a tiered calculation or a fixed fee?
- Does the quoted amount include GST?
- Is there a minimum commission?
- Which marketing expenses are additional?
- What would I owe if the property does not sell?
- Would a lower commission change the services provided?
The answers matter because the headline percentage may not tell the whole story.
A proposal with a lower percentage could still involve substantial additional charges. Another proposal might include services that would otherwise be billed separately.
The comparison should therefore be between complete written proposals, rather than a percentage mentioned during a kitchen-table conversation.
Property Noise has previously examined the broader value debate in The $30,000 question: Are real estate commissions still justified?
The practical question for an individual seller is more specific: what am I paying this agent to deliver?
WHAT ABOUT AUSTRALIA?
Australian sellers can also discuss commission rather than simply accepting the opening proposal.
In Western Australia, the Real Estate Institute of Western Australia states that commission is not set by law and can be negotiated. Its guidance describes different arrangements, including percentage-based fees, fixed fees and bonus structures. reiwa.com.au
That guidance is a useful Australian example, although sellers should check the agreement requirements and consumer guidance applicable to their own state or territory.
A proposal should clearly explain both the agent’s remuneration and any additional campaign costs.
The distinction is important. Negotiating the commission does not automatically reduce photography, advertising or other separately agreed expenses.
For sellers, the objective should be to understand the total expected bill before committing to a campaign.
Advertising costs deserve scrutiny in their own right. Property Noise has also covered REA Group’s agent contracts and the ACCC, providing further context for the discussion about transparency in Australia’s property advertising market.
IS THE SAME THING HAPPENING HERE?
There is a difference between knowing that a fee can be negotiated and knowing how often sellers actually negotiate it.
The US research supplies figures for its American respondents. We have not established equivalent New Zealand or Australian survey figures showing how many sellers ask for a reduction, or how many succeed.
It would therefore be misleading to claim that two-thirds of Kiwi or Australian sellers are missing out, or that nine out of ten would obtain a discount simply by asking.
American commission arrangements also have their own structure. A reported US commission figure should not automatically be compared with the fee quoted by a listing agent in New Zealand or Australia.
The more defensible local conclusion is straightforward:
There is room to have the conversation. The outcome will depend on the agent, the property, the proposed service and the agreement.
HALF A PERCENTAGE POINT CAN MEAN THOUSANDS
Commission percentages can sound small until they are converted into dollars.
Consider a hypothetical sale at $1 million, using the local currency in either New Zealand or Australia.
| Illustrative commission rate | Commission on a $1 million sale |
|---|---|
| 3% | $30,000 |
| 2.5% | $25,000 |
| Difference | $5,000 |
These are illustrative rates, not market averages. The calculation excludes any applicable GST and additional charges.
A reduction from 3% to 2.5% is half a percentage point. On these figures, it reduces the commission itself by approximately 16.7%.
That is why precise wording matters.
A seller asking for “half a percent off” should make sure both parties understand the proposed calculation — and that the final agreement records it clearly.
For a household managing a mortgage discharge, moving costs and the purchase of another property, several thousand dollars can make a meaningful difference.
But savings on the fee are only one part of the transaction.
THE LOWEST COMMISSION DOES NOT GUARANTEE THE BEST RESULT
A seller’s financial outcome depends on the price achieved as well as the costs incurred.
An agent who charges less but achieves a materially lower sale price may leave the seller worse off. An agent who charges more needs to explain why their proposed service represents better value.
Neither outcome can be assumed from the fee alone.
The relevant calculation is:
Sale proceeds − commission − marketing − other selling costs = net proceeds.
That gives sellers a better framework for comparing proposals.
Ask each agent to explain:
- Their price assessment and the evidence supporting it.
- Their recent results with comparable properties.
- Who will handle enquiries, viewings and negotiations.
- How they will reach likely buyers.
- How frequently they will report back.
- What they will do if the initial campaign does not produce an acceptable offer.
Promises of an exceptional sale price should be tested just as carefully as claims that a particular commission is necessary.
The strongest proposal combines a credible pricing strategy, a clear service commitment and transparent costs.
WHY MIGHT AN AGENT AGREE TO A LOWER FEE?
Agents operate businesses. They make commercial decisions about the work involved, their costs and the opportunities available.
A seller can reasonably ask whether the proposed fee reflects the particulars of their property and campaign.
For example, a conversation might cover an existing buyer enquiry, a straightforward campaign, a substantial property value or the possibility of future business.
Those circumstances do not create an entitlement to a discount. They give both parties something concrete to discuss.
An agent may agree to a lower rate. They may propose a different package. They may explain that their fee is firm.
The important point is that a seller can ask without treating the agent’s work as worthless.
Equally, an agent should be able to explain the value of the service without relying on the seller’s reluctance to question the bill.
INTERVIEW MORE THAN ONE AGENT
The US report also found that 65% of respondents interviewed only one agent before making their choice. realestatenews.com
That limits the opportunity to compare approaches.
A personal recommendation or previous relationship can be valuable. But another proposal may reveal differences in pricing advice, campaign design, communication and cost.
For local sellers, interviewing several agents can help establish what is available for their particular property.
Keep the comparison consistent. Give each agent the same information and ask for a written breakdown.
Then examine the substance:
Are they proposing the same work? Are the marketing costs comparable? Is the commission calculated in the same way? Who will actually do the job?
A competing quote is useful when it helps a seller understand the options. It becomes less useful when different services are treated as interchangeable.
THE QUESTION TO ASK BEFORE YOU SIGN
Sellers do not need a confrontational script.
A clear opening is:
“Before I sign, is there flexibility in your commission, and what would change in the service if we agreed a lower fee?”
Follow it with:
“Please show me the total cost, including GST and marketing, at a few possible sale prices.”
These questions move the discussion beyond a headline rate.
They also help establish whether the proposed arrangement is understandable and suitable.
Any agreed change should appear in the written agreement before signing. Sellers who are uncertain about the terms should seek appropriate advice rather than relying on a verbal assurance.
PROPERTY NOISE VIEW
A good real estate agent can bring valuable judgement, preparation, buyer management and negotiation to a sale.
That value should be explained.
A homeowner should feel comfortable questioning a commission that could amount to tens of thousands of dollars. The fee deserves the same attention as the other major financial decisions involved in selling a home.
The US findings do not prove that New Zealand and Australian agents will respond in the same way. They do highlight a habit worth reconsidering: accepting a significant charge without asking how it was determined.
The best approach is to compare agents, understand the full cost and negotiate where appropriate.
Then choose the proposal that makes the strongest case for your overall result.
Would you ask an agent to lower their commission — or have you already negotiated a better deal
FEATURE IMAGE DETAILS
Image headline: WILL YOU LOWER YOUR COMMISSION?
Image subheading: The question home sellers should ask before signing
Image description:
Alt text: Homeowner reviewing real estate commission costs and an agency proposal.
Caption: Understanding the commission and additional selling costs gives homeowners a clearer basis for comparing agents.
Suggested filename: negotiate-real-estate-commission-nz-australia.jpg
Photo credit: Credit the actual photographer or image provider used.