Avoiding Pricing Pitfalls: A Guide to Transparency in New Zealand’s Property Market
The listing above highlights an issue where the price entered into the backend CMS by the agent or their team does not align with the vendor's instructions. The significant discrepancy—$250,000 NZD or 79.17% of the minimum sale price—creates a misleading impression. This is particularly problematic given the agent’s statement that “The owners are firm on offers above $1.2m.”
As Agents are actively trying things to get a sale, the property market in New Zealand can be challenging, and ensuring transparency in pricing is a crucial step in your home-buying journey. While many agents and vendors operate with integrity, occasional inconsistencies between advertised prices and verbal or written statements can arise. Staying vigilant can save you from potential misunderstandings or disappointments.
Cross-Check the Advertised Price
Start by carefully reviewing the property’s listed price on reputable online platforms like TradeMe Property or RealEstate.co.nz. Pay attention to whether the price is a firm asking price, a price indication, or part of a price-by-negotiation strategy. Compare this information with what the agent or vendor has communicated directly. If there’s a discrepancy, seek clarification immediately.
Ask for Written Confirmation
If you notice conflicting pricing information, request confirmation in writing from the agent. This can prevent miscommunication later and help ensure all parties are on the same page. A responsible agent should have no hesitation in providing you with accurate pricing details and explaining any differences.
Be Aware of “Underquoting” Practices
While rare in New Zealand, some listings may use a price that seems unusually low to attract interest, a tactic known as “underquoting.” This can result in buyers wasting time and resources on properties that are ultimately well outside their budget. If a price feels too good to be true, ask questions and seek advice from a trusted real estate professional.
Use Reliable Tools for Verification
In some cases, online platforms may show inconsistent pricing across sections of the listing. For instance, the main price displayed might differ from what’s stated in the details or in communication with the agent. Take a screenshot of any discrepancies and cross-check the listing again after a short interval to see if the issue has been resolved.
Hold the Agent Accountable
If you identify a clear and obvious mismatch, approach the agent with evidence. Polite but firm communication is key. Most agents value their reputation and will be eager to address any issues promptly. If the agent cannot provide a reasonable explanation or resolve the matter, you may want to report the discrepancy to their managing agency.
If you encounter a clear and obvious mismatch between a property's listed price and the information provided by an agent, it's important to address the issue promptly. The Real Estate Agents Act 2008 (https://www.legislation.govt.nz/act/public/2008/0066/latest/DLM1151921.html) outlines specific obligations for agents regarding the accuracy of information. You can refer to the following provision when discussing the discrepancy with the agent:
Section 72: Unsatisfactory conduct
"For the purposes of this Act, a licensee is guilty of unsatisfactory conduct if the licensee carries out real estate agency work that—
(a) falls short of the standard that a reasonable member of the public is entitled to expect from a reasonably competent licensee; or
(b) contravenes a provision of this Act or of any regulations or rules made under this Act; or
(c) is incompetent or negligent; or
(d) would reasonably be regarded by agents of good standing as being unacceptable."
By citing this section, you highlight the agent's responsibility to provide accurate and reliable information, ensuring they address and rectify any discrepancies promptly.
