Table of Contents
- What Does a Flat Fee Include? The Short Answer
- What Is Included in Real Estate Commission?
- What a Flat Fee Usually Includes: Service by Service
- What’s Usually Excluded: Extra Charges and Add-Ons
- Flat Fee vs Commission: How the Two Models Compare
- Real Estate Marketing Costs: What You’re Actually Paying For
- When Real Estate Commission Is Payable NZ Sellers Should Know
- How to Check a Flat-Fee Quote Before You Sign
- Frequently Asked Questions
Last Updated: October 22, 2026
What Does a Flat Fee Include? The Short Answer
A flat fee is a set price agreed before any work begins.
That is the short answer. The longer one matters more, because what a flat fee includes varies hugely between agencies and industries.
Here at Big Mike, we get asked this question constantly, usually by sellers who have only ever seen percentage commission.
Below, we break down exactly what a flat fee covers and what it usually doesn’t.
What Is Included in Real Estate Commission?
Real estate commission pays for the work an agent does to sell a property. That includes pricing advice, marketing, buyer attraction, showings, negotiation, and managing the sale through to settlement. Commission is simply the billing method, a percentage of the sale price instead of a set amount.
The core services every commission covers look like this:
- A property appraisal and price guidance
- Listing preparation and professional photography
- Advertising across the main property portals
- Open homes and private viewings
Most sellers assume the marketing comes free with commission. It doesn’t. It comes out of the commission, which is a very different thing.
Ask any agent whether marketing is included or billed on top. The answer tells you more about the fee structure than the headline rate ever will.
The core services every commission covers
Every legitimate agency covers the basics: listing, photos, portal advertising, and negotiation. Where they differ is depth. Some include video walkthroughs, floor plans, and staging advice. Others charge those as extras.
According to Consumer Protection guidance on real estate agency agreements, sellers should receive a written agency agreement setting out exactly what is being charged for. Read that document closely.
What a Flat Fee Usually Includes: Service by Service
A flat fee normally bundles the full listing service into one agreed price. Here’s the service-by-service breakdown most flat-fee packages follow:
- Initial appraisal and pricing strategy. A walkthrough, market comparison, and a recommended price range.
- Listing setup. Writing the listing copy, uploading to the property portals, and setting the campaign dates.
- Professional photography. Usually exterior and interior shots, sometimes drone or twilight photos.
- Marketing materials. Signage, online advertising, and email campaigns to the agency’s buyer database.
- Open homes and viewings. Scheduled open homes plus private inspections for serious buyers.
- Buyer management. Fielding enquiries, qualifying buyers, and following up after viewings.
- Negotiation and offer handling. Presenting offers, advising on conditions, and negotiating price.
- Contract support. Working with the solicitor through to unconditional and settlement.
The scope of work should be written down. If it isn’t, it isn’t agreed.
What’s Usually Excluded: Extra Charges and Add-Ons
Here’s the part most guides skip. A flat fee is only flat for the agreed scope. Anything outside that scope gets charged separately, and the list of extras can surprise people.
Common exclusions and add-ons:
- Professional staging or furniture hire
- Professional video production or 3D walkthroughs
- Additional photography sessions if the property is re-listed
- Paid social media advertising beyond the standard package
The most common mistake is assuming “flat fee” means “no other costs ever.” A flat fee covers the agreed scope, not unlimited work. If you ask for extra marketing after signing, expect a separate charge, and get it quoted in writing first.
Flat Fee vs Commission: How the Two Models Compare
The difference comes down to risk and certainty. With commission, the agent earns more when the price is higher, so their income rises with the sale price.
That single difference shapes everything else, marketing spend, negotiation incentives, and what you actually pay at settlement.
| Feature | Flat Fee | Percentage Commission |
|---|---|---|
| How it’s charged | One set amount | Percentage of sale price |
| Cost as price rises | Stays the same | Increases |
| Marketing costs | Usually bundled in | Often deducted from commission |
| Incentive to chase a higher price | Depends on the agent | Built into the model |
| Cost certainty for the seller | High | Lower |
| Payment trigger | Usually on unconditional sale | Usually on unconditional sale |
Neither model is automatically better. A flat fee suits sellers who want certainty and a clear scope.
Worked example: the same sale under both models
Picture a home that sells for $750,000. Under a flat fee of $12,500 + GST, the seller pays that amount regardless of the final price.
Under a 3% commission, the seller pays $22,500 on a $750,000 sale. If the price rises to $780,000, commission rises to $23,400.
The maths is simple: on a higher sale price, a flat fee can represent a saving by comparison.
How the fee relates to the home’s sale price
A flat fee is fixed, so it doesn’t move with the market. That means on a higher-value property, a flat fee represents a smaller percentage of the sale price, and often a bigger saving versus commission.
A common pattern is for sellers to compare the flat fee against other models at their expected sale price, then factor in any add-ons. That gives a true like-for-like comparison rather than a headline rate.
Ask for the total cost under both models at your expected sale price, including any add-ons. The number that matters is what leaves your pocket at settlement, not the rate on the brochure.
For a deeper look at how commission structures work in practice, see our guide to understanding agency agreements | /agency-agreements-guide.
When commission can cost more than a flat fee
On a strong sale, a seller who expects competitive interest and a higher final price may find a flat fee represents better value.
Conversely, a seller who expects a difficult campaign or a lower price may find the gap narrows. The right choice depends on your property and your market.
When commission can suit a seller better
Some sellers prefer the agent’s income to be tied to the result. If the agent is highly motivated to chase a higher price, commission can align incentives. That’s a legitimate reason to choose commission.
The Real Estate Authority’s guidance for sellers explains your rights around agency agreements and what agencies must disclose before you sign.
Real Estate Marketing Costs: What You’re Actually Paying For
Real estate marketing costs are the line item sellers most often misunderstand. Photography, portal advertising, signage, and digital campaigns all cost money, and someone has to pay for them.
Under commission, marketing usually comes out of the agent’s cut. Under a flat fee, it’s usually built into the set price. Either way, you’re paying. The question is whether you can see the number.
What marketing actually includes
A typical listing campaign bundles several moving parts. Here’s what to look for:
- Professional photography, exterior and interior shots, often with drone or twilight options
- Floor plans, measured drawings that help buyers understand the layout
- Portal advertising, listing on the main property portals for the campaign period
- Signage, a for-sale board and any directional signage
Some agencies include all of these in the flat fee. Others include the basics and charge the rest as add-ons. The difference can be significant.
The add-on trap
The most common surprise is discovering that video walkthroughs, 3D tours, staging, or additional photography sessions cost extra. Those add-ons can add up quickly, and they’re often not mentioned in the headline fee.
A transparent agency will itemise what’s included and what costs extra before you sign. An agency that waves the question away is telling you something.
Ask for a written marketing breakdown before signing. If the answer is vague, assume the extras will be charged separately, and get them quoted in writing first.
How to compare marketing inclusions across quotes
When you compare a flat-fee quote against other models, compare the marketing line by line.
The Consumer Protection guidance on real estate agency agreements explains what should be set out in writing. Read that document closely, it’s where the real inclusions live.
For more on how to read an agency agreement, see our guide to questions to ask before listing | /questions-before-listing.
What you can negotiate
Marketing inclusions are often negotiable. If a package doesn’t include video and you want it, ask whether it can be added to the flat fee rather than charged separately. Some agencies will bundle it; others won’t.
The key is to get the final scope in writing before you commit. A flat fee is only flat for the agreed scope, anything outside that scope gets charged separately.
When Real Estate Commission Is Payable NZ Sellers Should Know
Commission becomes payable when the sale goes unconditional, or on settlement, depending on the agency agreement. The exact trigger should be written into the contract, so check it before signing.
Most agreements tie payment to the sale becoming unconditional. That means if the deal falls over before that point, commission generally isn’t owed. Once it’s unconditional, the agent has done the job and the fee falls due.
The payment trigger matters as much as the amount. A flat fee is only a good deal if you know exactly when it becomes payable and what happens if the sale doesn’t proceed.
How to Check a Flat-Fee Quote Before You Sign
A flat-fee quote is only as good as its fine print. Run through this checklist before committing:
- Is the full scope of work listed in writing?
- Are marketing costs included or itemised separately?
- What happens if the property doesn’t sell in the campaign period?
- Are there add-on charges for video, staging, or re-listing?
- When exactly does the fee become payable?
Questions to ask any agency
- What exactly does the fee cover, line by line?
- Which marketing channels are included, and which cost extra?
- What’s the total cost if the property sells, and if it doesn’t?
- Who pays for photography and any re-shoots?
- What’s your recent sales record in this area?
Big Mike has spent 38 years selling in Mid-Canterbury, and the questions above are the ones that separate a fair quote from a clever one. A flat fee of $12,500 + GST covers the full listing service, with no percentage skimming the sale price. If you want the scope explained plainly before you commit, book an appraisal and we’ll walk you through it.
Frequently Asked Questions
What does a flat fee include when selling a property?
A flat fee typically covers the core agent work: an appraisal, listing the property on the main property portals, professional photography, a floor plan, signage, open homes and private showings, negotiation, and support through to settlement. Marketing spend, LIM reports and any work outside the agreed scope are usually charged separately, so ask for the full inclusion list in writing before you sign.
Does a flat-fee service include marketing, photography and advertising?
It depends on the package. Many flat-fee packages bundle professional photography, a floor plan, listing exposure and basic signage, while premium advertising such as feature placements or extra print runs can sit outside the fee. Always ask which marketing items are included, which are optional add-ons, and who pays if you want extra photos or a second open-home campaign. Getting this in writing lets you compare real estate marketing costs across agencies fairly.
Can a flat fee change if the property takes longer to sell?
A genuine flat fee is fixed for the agreed scope, so a slower sale should not increase it. What can change is the marketing budget, since longer campaigns may need more advertising spend, and any extra services you request. Check the agency agreement for the campaign length, what happens if you renew, and whether add-on charges apply. If a quote can move, ask what triggers the change before you commit.
When is real estate commission payable in New Zealand?
Commission is normally payable on settlement, once the sale becomes unconditional and the transaction completes, as set out in the agency agreement. Some agreements allow a claim if a buyer introduced during the campaign later buys the property. Read the payment clause carefully and ask your agent to explain it in plain terms. For a flat-fee sale, confirm the exact amount, whether GST is included, and the payment date before signing.
Selling a home is a big decision, and the fee structure shouldn’t be the confusing part. Big Mike offers a transparent flat fee of $12,500 + GST, backed by Arizto’s technology, expert negotiation, and access to off-market buyers. Get started with Big Mike and sell with a fee you can see from day one.