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Introduction
Legal and Negotiation Processes
Preparation and Planning
Settlement and Post-Purchase
The Market and Compliance
Viewing and Inspecting Properties

01.
 
How To Use The Step Guides
02.
 
Buyer Introduction
03.
 
Welcome to Your First Home Journey
04.
 
Your Current Scenario
05.
 
Understanding Real Estate Market Dynamics and Influences
06.
 
Assessing the Benefits of Owning vs. Renting
07.
 
Assessing Your Readiness and Financial Planning for Homeownership
08.
 
Establishing a Budget for Property Purchase
09.
 
How First-Home Buyers Use the Bank of Mum and Dad in NZ
10.
 
Deciding to Work With A Mortgage or Financial Adviser
11.
 
Deciding on Whether to Proceed with Home Buying
12.
 
Analysing Financial Capacity for a Mortgage in New Zealand
13.
 
Getting Pre-Approved for a Mortgage
14.
 
Proceeding As a Cash Buyer
15.
 
Consider Utilising a Home Buying Service
16.
 
Attending Property Seminars and Workshops
17.
 
Exploring Various Mortgage Options in New Zealand
18.
 
Property Sale Types in New Zealand
19.
 
Anti Money Laundering Rules and Regulations
20.
 
Determining Long-Term Goals and Future Plans for Property Buying
21.
 
Costs Associated with Buying a Property
22.
 
Creating a List of Must-Haves and Nice-to-Haves
23.
 
Potential Purchasing Partners for Property Buying
24.
 
Researching the Housing Market in Your Desired Area
25.
 
Avoiding Pricing Pitfalls: A Guide to Transparency in New Zealand’s Property Market

26.
 
Location and Commuting
27.
 
Understanding Property Taxes in New Zealand
28.
 
How to Compare The Values of Similar Properties
29.
 
Exploring Property Listings and Conducting Online Research for Buying Property
30.
 
Interacting with Real Estate Agents
31.
 
Arranging Private Viewings of Properties
32.
 
Arranging Professional Property Inspections
33.
 
Guide to Attending Open Homes and Viewing Properties
34.
 
Seeking Comprehensive Legal Advice Before Making an Offer
35.
 
Choosing the Right Conveyancing Lawyer when Buying Property
36.
 
Understanding Legal Obligations and Rights as a Buyer
37.
 
Considering Community Amenities and Infrastructure
38.
 
Conditional Offers Versus Unconditional Offers
39.
 
Formulating an Offer Strategy
40.
 
Buying a Property at Auction
41.
 
Auction Bidding Services: Expert Representation for Your Property Purchase
42.
 
Buyer First Mover Advantage Offer Strategy
43.
 
Engaging in Negotiation of Purchase Terms
44.
 
Ensuring Compliance with Agreement Conditions When Buying Property
45.
 
Discussing Agreement Details with Your Legal Advisor
46.
 
Undertaking a Geotechnical Report
47.
 
Reviewing Property Inspection Reports for Potential Issues
48.
 
Requesting and Analysing a LIM Report
49.
 
Requesting and Analysing a PIM Report
50.
 
Things to Do During Due Diligence Period to Prepare for Move
51.
 
Advantages and Disadvantages of Using a Moving Company
52.
 
Organising Home and Contents Insurance
53.
 
Settlement Day Procedures
54.
 
How to Deal With Settlement Delays in Property Transactions
55.
 
Planning Interior Layout and Design
56.
 
Settling In and Post Purchase Steps
57.
 
Purchasing Necessary Furniture and Appliances
58.
 
Tools and Services To Help Manage Your Property & Finances Post Purchase
59.
 
Re-evaluating Your Budget Three Months Post-Property Settlement

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Buy / Step 25 of 59

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.

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