Why don't Estate Agents/Sellers put prices on homes in NZ?
Discussion
So looks like I will become a home-owner for the first time within the next 6-9 months here. Excited and nervous at the same time.
One thing that has struck me since the 'home shopping' started though - why don't Estate Agents/home sellers put prices on homes in NZ? Or, why are they reluctant to put a price on them?
I went to an open home viewing on the weekend and the conversation with the Estate Agent went like this...
Me: "what is the price of this home? I can't see it advertised anywhere?"
Agent: "umm, it doesn't have a For Sale price, as such..."
Me: "oh okay(?). So how much do they want for it or how much is it going to sell for?"
Agent: "umm, the price range is around $600,000-$800,000."
Me: "well that's a very wide price range and a bit vague... Why is it that a luxury car dealership can put a price on an ultra-rare Ferrari F40, but it's very rare to see a For Sale price advertised on homes in New Zealand?"
Agent: *tumbleweed with vacant stare*
Is it an attempt by Agents here to push the sale prices of homes up even more thereby increasing their commission and contribute to the housing un-affordability/greed - because they act in favour of the Seller only - unlike European and US markets where there are agents who act on behalf of Seller AND Buyer?...
"Deadline Sales" are literally a guessing game for buyers left plucking random figures out of thin-air; no wonder it's a super-bubble here.
Fingers crossed the upcoming housing market correction/Recession turns the tables on this farce.
Going by the 'RV' also seems very inaccurate to gauge a price, too. A friend of mine who works in property said RVs are miles off compared to the actual sale prices by around 20-50% (depending on area).
One thing that has struck me since the 'home shopping' started though - why don't Estate Agents/home sellers put prices on homes in NZ? Or, why are they reluctant to put a price on them?
I went to an open home viewing on the weekend and the conversation with the Estate Agent went like this...
Me: "what is the price of this home? I can't see it advertised anywhere?"
Agent: "umm, it doesn't have a For Sale price, as such..."
Me: "oh okay(?). So how much do they want for it or how much is it going to sell for?"
Agent: "umm, the price range is around $600,000-$800,000."
Me: "well that's a very wide price range and a bit vague... Why is it that a luxury car dealership can put a price on an ultra-rare Ferrari F40, but it's very rare to see a For Sale price advertised on homes in New Zealand?"
Agent: *tumbleweed with vacant stare*
Is it an attempt by Agents here to push the sale prices of homes up even more thereby increasing their commission and contribute to the housing un-affordability/greed - because they act in favour of the Seller only - unlike European and US markets where there are agents who act on behalf of Seller AND Buyer?...
"Deadline Sales" are literally a guessing game for buyers left plucking random figures out of thin-air; no wonder it's a super-bubble here.
Fingers crossed the upcoming housing market correction/Recession turns the tables on this farce.
Going by the 'RV' also seems very inaccurate to gauge a price, too. A friend of mine who works in property said RVs are miles off compared to the actual sale prices by around 20-50% (depending on area).
Yes, it was a ploy to push prices ever higher in an out of control housing market. Auctions are also more common when prices are on the rise.
Prior to the market losing its mind, prices guides were much more common. Now the market is on a downward trajectory, there are more houses being advertised with price guides, by negotiation or "Buyer Enquiry From" (which can also be somewhat misleading, as it was often used as a way to suck someone in with a low BEO, hoping to emotionally hook them and then revealing a much higher target price).
Best guide is to see what other properties in the area actually sold for - this is all public information, and can easily be found on sites like homes.co.nz and the like.
Good luck!
Prior to the market losing its mind, prices guides were much more common. Now the market is on a downward trajectory, there are more houses being advertised with price guides, by negotiation or "Buyer Enquiry From" (which can also be somewhat misleading, as it was often used as a way to suck someone in with a low BEO, hoping to emotionally hook them and then revealing a much higher target price).
Best guide is to see what other properties in the area actually sold for - this is all public information, and can easily be found on sites like homes.co.nz and the like.
Good luck!
Never understood the house prices in NZ it just seemed like a giant ponzi scheme. We rented a house in Orewa and the rent was OK for the area and the location, not cheap but not overly expensive either. Just recently I saw the house for sale on Oneroof for $1.65m which was frankly ludicrous for a bungalow that was single skin, single gazed, 2 bedroom, 1 bathroom and kitchen/diner/lounge and 6 foot depth of garden on the back and 12 foot on the front, no insulation or heating at all but it did have a tiled roof and not tin, all the internal walls/ceilings appeared to be made from hardboard! The location was about 200m from the beach which was great BUT there was a huge downside in that it was directly across from the loading bay of a supermarket that had continuous heavy refrigerated vehicles idling and queueing from 07:30 to 16:30 6 days a week and for 2 hours every Thursday they tested the standby generators which was incredibly noisy and you couldn't be outside when that was going on. Guess what, the open home was always on a Sunday when none of that was going on. Anyway, it didn't sell even after dropping the price from $1.65m to $1.3m and then just over $1m and is now off the market, as I said a completely mad price for what you would get.
The NZ housing market and estate agents are just plain weird - you would think that there would be a Rightmove equivalent, and that houses would be advertised with floor plans,, and some sort of price guidance, but no, that would be too helpful to the potential buyer.
As a buyer you are expected to know what a house will sell for in any given market, not actually what a sensible person would pay for that property - there is a big difference!
I once took a tape measure to an open home, as from the details and piss-poor photos there was no way of knowing whether a double bed would fit in a room - the agent told me to put it away until I had made an offer on the house!!!
As a buyer you are expected to know what a house will sell for in any given market, not actually what a sensible person would pay for that property - there is a big difference!
I once took a tape measure to an open home, as from the details and piss-poor photos there was no way of knowing whether a double bed would fit in a room - the agent told me to put it away until I had made an offer on the house!!!
Edited by dobly on Sunday 6th November 03:01
Yes it’s to push prices up and as with most things here kiwis don’t seem to mind getting ripped off as far as I can work out!.
I think it stems from the fact that they’ve had house price growth pretty much forever and even if they overpay for a house they used to know it will still be worth more next year!.
Obviously this is changing and they seem very slow/reluctant to change with what’s happening now prices are dropping. Watch the auctions online its ridiculous they see how much they can get out of the room then they go away with the highest bidder in private to negotiate, say it’s not enough and screw some more cash out of them.
I cannot imagine there’s many estate agents here that aren’t millionaires just look at most things here it’s run like a cartel and the normal public pay the price by getting ripped off.
I think it stems from the fact that they’ve had house price growth pretty much forever and even if they overpay for a house they used to know it will still be worth more next year!.
Obviously this is changing and they seem very slow/reluctant to change with what’s happening now prices are dropping. Watch the auctions online its ridiculous they see how much they can get out of the room then they go away with the highest bidder in private to negotiate, say it’s not enough and screw some more cash out of them.
I cannot imagine there’s many estate agents here that aren’t millionaires just look at most things here it’s run like a cartel and the normal public pay the price by getting ripped off.
When placing an ad on trademe, estate agents/vendors specify an expected sale price. This is used for searchers but not made visible in the ads. There was a website that you could access this price data however trademe had it taken down:
https://www.stuff.co.nz/business/industries/127775...
I haven't checked if this is still working but it seems there is/was an open source replacement:
https://www.reddit.com/r/newzealand/comments/stf7y...
https://www.stuff.co.nz/business/industries/127775...
I haven't checked if this is still working but it seems there is/was an open source replacement:
https://www.reddit.com/r/newzealand/comments/stf7y...
The simple answer as to why they dont put a price on? - They have no f
king idea as to the price (and even less idea as to value).
In the rapidly increasing market and now decreasing market - it is just seen as a way to get the maximum they can.
Incredibly frustrating - but if you use Trademe and reorder the properties into highest to lowest, it can help narrow it down.
Now, as to floorplans - what a great idea and a time saver for all, but they just dont get it. Rightmove has it all over the boys here.
But, be warned, Real Estate agents here are nothing but lieing lazy scum.
king idea as to the price (and even less idea as to value).In the rapidly increasing market and now decreasing market - it is just seen as a way to get the maximum they can.
Incredibly frustrating - but if you use Trademe and reorder the properties into highest to lowest, it can help narrow it down.
Now, as to floorplans - what a great idea and a time saver for all, but they just dont get it. Rightmove has it all over the boys here.
But, be warned, Real Estate agents here are nothing but lieing lazy scum.
A44RON said:
So looks like I will become a home-owner for the first time within the next 6-9 months here. Excited and nervous at the same time.
One thing that has struck me since the 'home shopping' started though - why don't Estate Agents/home sellers put prices on homes in NZ? Or, why are they reluctant to put a price on them?
I went to an open home viewing on the weekend and the conversation with the Estate Agent went like this...
Me: "what is the price of this home? I can't see it advertised anywhere?"
Agent: "umm, it doesn't have a For Sale price, as such..."
Me: "oh okay(?). So how much do they want for it or how much is it going to sell for?"
Agent: "umm, the price range is around $600,000-$800,000."
Me: "well that's a very wide price range and a bit vague... Why is it that a luxury car dealership can put a price on an ultra-rare Ferrari F40, but it's very rare to see a For Sale price advertised on homes in New Zealand?"
Agent: *tumbleweed with vacant stare*
Is it an attempt by Agents here to push the sale prices of homes up even more thereby increasing their commission and contribute to the housing un-affordability/greed - because they act in favour of the Seller only - unlike European and US markets where there are agents who act on behalf of Seller AND Buyer?...
"Deadline Sales" are literally a guessing game for buyers left plucking random figures out of thin-air; no wonder it's a super-bubble here.
Fingers crossed the upcoming housing market correction/Recession turns the tables on this farce.
Going by the 'RV' also seems very inaccurate to gauge a price, too. A friend of mine who works in property said RVs are miles off compared to the actual sale prices by around 20-50% (depending on area).
Definitely not the case in the UK. The estate agent works for the seller, and has no obligation to the buyer beyond being accurate and being obliged to pass all offers to the sellerOne thing that has struck me since the 'home shopping' started though - why don't Estate Agents/home sellers put prices on homes in NZ? Or, why are they reluctant to put a price on them?
I went to an open home viewing on the weekend and the conversation with the Estate Agent went like this...
Me: "what is the price of this home? I can't see it advertised anywhere?"
Agent: "umm, it doesn't have a For Sale price, as such..."
Me: "oh okay(?). So how much do they want for it or how much is it going to sell for?"
Agent: "umm, the price range is around $600,000-$800,000."
Me: "well that's a very wide price range and a bit vague... Why is it that a luxury car dealership can put a price on an ultra-rare Ferrari F40, but it's very rare to see a For Sale price advertised on homes in New Zealand?"
Agent: *tumbleweed with vacant stare*
Is it an attempt by Agents here to push the sale prices of homes up even more thereby increasing their commission and contribute to the housing un-affordability/greed - because they act in favour of the Seller only - unlike European and US markets where there are agents who act on behalf of Seller AND Buyer?...
"Deadline Sales" are literally a guessing game for buyers left plucking random figures out of thin-air; no wonder it's a super-bubble here.
Fingers crossed the upcoming housing market correction/Recession turns the tables on this farce.
Going by the 'RV' also seems very inaccurate to gauge a price, too. A friend of mine who works in property said RVs are miles off compared to the actual sale prices by around 20-50% (depending on area).
Gassing Station | New Zealand | Top of Page | What's New | My Stuff