How to choose a real estate agent

1. Be prepared to shop around

Make a list of real estate agents you’ve enjoyed dealing with – maybe you’ve bumped into them at open homes or used them before – as well as those recommended by friends and family. We recommend talking to at least three.

2. Check out our real estate survey

We asked nearly 2,000 people to give us their thoughts on the agencies they’ve used recently. We then used those results to give each company a satisfaction score, so you can see which ones have the happiest clients.

3. Do a background check

You can use the Real Estate Authority’s public register to check an agent is licensed and if they’ve had any complaints upheld against them in the last 3 years.

4. Request property appraisals

Once you have a shortlist of agents, ask them to do an appraisal as this will give you a chance to meet with them at your home and assess how comfortable you feel with them.

An appraisal will typically give you a range of what they expect to be able to sell your house for, with a low- and high-end dollar figure. Forget the upper figure, as alluring as it may be, and instead work out the midpoint. The calculator at the bottom of this page makes this easy.

5. Compare commission fees

There are three ways agents charge commission:

• Set percentage. The agent takes the same cut on every dollar from the purchase price of your home.
• Tiered percentages. Typically, agents take a higher cut on the lower tier. For example, they might charge 3.95% on the first $300,000 of the purchase price and 2% on every dollar above that.
• Upfront fee. Some agencies charge a fixed fee or a maximum fee, which can increase with the estimated sales price of your home.

Using the appraisal midpoint and our calculator, you can work out each agent’s estimated fee. Let them know you’re talking with other agencies and ask if they’ll negotiate their commission fee to beat the best offer you have.

6. Ask for their recommended sale method

Advertised price, deadline sale and by negotiation are the most common methods of selling in New Zealand, but you might also be interested in selling by tender or auction. Check which sale method each agent would recommend and keep in mind the decision is yours.

7. Make sure you like them

You might think you are okay with someone who is a bit pushy or aloof at the start of the process, but things could escalate when negotiations get intense down the track. It’s business, so you don’t have to want to be friends with them, but you want to know they’ll pick up the phone and tell it to you straight when you need to have a discussion.