What questions should I ask a real estate agent before I sign a listing agreement?

What Questions Should I Ask Before Signing With an Agent?
Signing a listing agreement without asking the right questions is a common and costly mistake. Here are the questions every vendor should ask.

What price do you recommend, and why?
Ask for a written appraisal backed by comparable sales evidence. The agent should be able to show you specific recent sales in your suburb or comparable areas that support their recommended price. If they cannot provide written evidence, the price opinion is guesswork. Push back on vague answers — you deserve a specific, evidence-based view.

What method of sale do you recommend, and why?
Auction, tender, price by negotiation, and deadline sale are the main methods. Each is appropriate in different conditions. Ask the agent to explain why they are recommending the specific method for your property in the current market. If the answer is simply ‘we always use auction’ without market-specific reasoning, probe further.

What is your marketing plan, and what will it cost?
Get a written marketing proposal that specifies: which platforms your property will be listed on, whether the agency is paying for marketing or expecting a vendor contribution (VFC — vendor funding contribution), what the photography and videography standard is, and whether a floor plan will be provided. Marketing costs can range from a few hundred dollars to several thousand dollars and should be explicitly agreed in writing before listing.

What is your commission rate?
New Zealand real estate agent commission is negotiable. Standard rates typically range from 2 to 4 percent of the sale price depending on the agency and property price. Ask for the commission rate and whether it is fixed or tiered. Also ask: is there any additional fee or success bonus above the standard commission? All fees should be documented in the agency agreement.

How many properties have you sold in my area in the last 12 months?
This question establishes the agent’s genuine local track record. Ask for a list of recent sales with addresses, asking prices, and achieved prices. An agent who regularly sells in your suburb will answer this confidently with specific examples. An agent who is stretching outside their usual patch may give vague or general answers.

How will you keep me informed during the campaign?
Establish the communication rhythm upfront: how often will they contact you, through what channels, and what information will each update contain?
​Mismatched communication expectations are one of the most common sources of vendor dissatisfaction. Set clear expectations before signing.

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Paul Sumich is a Whangarei-based real estate professional with local Northland expertise. Find more at paulsumich.co.nz/blog