Discussion of the Day
Should Real Estate Agents be restricted?
Sep 06, 21
With the current housing crisis in New Zealand getting out of control. Do you feel that it's up to Real Estate Agents to help the crisis by setting realistic house prices and rental prices instead of driving the prices up. These agents seem to have a lot of clout when it comes to "setting the price"
Comments
  • https://qv.co.nz/property-search you can go here and find out how much your property is worth.
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    • Wait until we get a population increase, The Afghans will want to live some where. Yes it is here too in Australia. A house is only worth what some one is willing to pay for it. Normal people can't afford to live in the cities any more. I can't afford to live in Sydney or Melbourne not that I want to that is beside the point. We hug the coast like we need to see the ocean. We moved, we down sized our house. Just because a place in on the market for a price doesn't mean they will get that price either. We got a lot less for our house than what we had it on the market for. We will never have a house we rent out again even if we had the money. It's all crazy if you ask me. Interest rates were never this low when we owed money. In the 80's it was 18%. Great if you had money in the bank, not when you owed money. Never been on the right page for any of it.
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      • The problem with the housing situation in both NZ and Australia is there is a severe shortage of properties to meet 5h3 demand and it is up to the Respective governments to accelerate more land to b3 subdivided into lots . Low interest rates are here for th3 next 12 months plus so demand fo4 housing is goin* to be excessive
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        • No idea at all.
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          • All houses should and they should have rules on how many your allowed
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            • I feel they need to make the price reasonable so people can afford the rent.
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              • can i bot a bot ?
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                • im just sick of not even being able to attempt to buy a house.
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                  • every industry should be regulated
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                    • Yes!!@
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                      • Yes
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                        • well, most agents are on a commission and that commission is tied to the final bid, and rental agents usually get the equivilant of two weeks rent plus a percentage of that weekly rent
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                          • no comment
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                            • RE agent only gives an estimate/range of the property & the buyers pay what they perceive as value.
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                              • Yes n am not a bot
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                                • Yes I think it is very sensible
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                                  • Real estate has gone crazy young ones will never be able to afford a home in the future unless they are on footballers salaries.
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                                    • The real estate market is driven by supply and demand and has nothing whatsoever to do with real estate agents influence which id borne out by Auction results.
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                                      • the area i grew up in, in nz in the 50,s was govt housing. mum and dad bought our house and paid it off. it was an area no one wanted to live in, if we told people where we lived, they turned their noses up at us, now you cannot buy a house in that area for under $700k. we just sold our family home and we put a fairly modest amount on to sell it. the agent had about 60 people come for the first open home, and when he sold it, it was for about an extra $100k,so that was the agent putting price up, not us.
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                                        • Prices are horrendous at present. I am fortunate to own my own home but have recently seen a family member try to find alternate accommodation because the place she was renting (which was a dump anyway) was put up for sale. The real estate agent even brought people through when she was packing. Rather inconsiderate in my books!
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                                          • some real estates are good
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                                            • NO
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                                              • Don't just look at the Real Estate Agents and Yes, they are after getting those big fees but there are other things at work as well. The Banks, the Sellers and the Buyers. The banks seem to be lending whatever people want to borrow and let's be honest they too are after the money they stand to make in fees, interest. The Sellers want to get as much as they can and let us not forget State and Territory Governments! There is that nasty little item which is often overlooked: Stamp Duty. The Governments and their Agencies, other than estimating the amount of Stamp Duty to be paid and this is estimated on a computer in an instant so they don't actually do any work at all yet they collect multiple 10s of 1000s in Stamp Duty on each sale. Housing prices have gone mad. In our area a very modern small house about 18 months old, (4 tiny bedrooms, lounge, kitchen-dining and a garage which takes up half the house) went on the market with an absurd asking price of between $760,000 and $820,000. Just 4 people were interested. It sold for $876,000 and the new owners then proceeded to rip out the Carpets, Kitchen and all the curtains and replaced them. So it is not just Real Estate Agents who are causing the current boom in prices. The Buyers are playing a part too.
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                                                • the day auctions came in was the worst thing that could have happened for potential young house buyers. While real estate agents put properties to auction the prices of houses will keep creeping up - there is no control as buyers keep bidding higher every time - get rid of auctions - put a price on properties and not with over after price - REAgents are only thinking of their pockets ugh
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                                                  • not sure why prices are so high
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                                                    • Why wouldn't they? Think of those lovely fat commissions they're getting.
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                                                      • Greed will ruin them all
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                                                        • A real estate agent can only go on what price the Government has set for the homes in an area. It's ultimately the price they make the property worth for rates and taxes to be paid on each home. I'm assuming you have council rates, water rates etc to pay there the same as Australia. Government Valuers make the decision on what the value is for taxes to be paid.
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                                                          • I personally have a few friends that are real estate agents and from what I hear its the fact that everything is going up in prices. I think we should give them a bit of a break. It seems like everyone is out to blame someone for everything. Can't we all just get back to the way things use to be.
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                                                            • That would be tantamount to a somewhat Communist State idea.
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                                                              • Due to a termite infestation I had to vacate my home last November and have habited a Roadhouse for two months, friends homes fora month and have been staying in a granny flat since February. Have put over fifty applications for properties up to $360 a week there are plenty of houses but as you say greedy owners and real estates I am not living merely existing cannot go about my life I am depressed and trying not to give up but it is hard
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                                                                • their prices are ridiculous and fees shoud be capped after all we buy homes for ourselves and 10 percent to a real estate agent is off this panet
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                                                                  • Is there not a Tenancy Tribunal or Overseer of these activities in NZ or even an Ombudsman that can shorten the string on their clout?
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                                                                    • Some agents are honest but sadly a few bad apples are out there. House prices will always go up with limited supply to buy. Maybe the government should lease all land for 99 years and residents are free to do what they want to live comfortably.
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                                                                      • Greed rules.
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                                                                        • Don’t need them-sold own house and saved 35k
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                                                                          • The agents job it to get the best price for the vendor. The prices they are getting currently is only a reflection of the amount of money that is out there. Perhaps it’s more appropriate for the government to regulate overseas land ownership instead
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                                                                            • I heard somewhere, ( I think from someone on this site) that almost every politician -here in Australia have at least 1 investment property- so maybe politicians are also influencing the market, to ensure that they make good money themselves.
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                                                                              • it"s all about self these days the more people can get out of others the better they feel.Just plain greed ,no one cares about others any more
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                                                                                • Greedy vultures
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                                                                                  • I think pure greed might have something to do with it; either from the seller, Agent or both ........ win, win for them but not for the humble tenant, prospective property buyer .......
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                                                                                    • Our rent has gone up twice in just over a year and when we were talking to the owners of the home, they thought we were paying $80 less than what we are. They had no idea the property managers were putting the rent up. Note: The home (and others) are owned by a trust so they don't see the rent payments directly
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                                                                                      • The agents' dream is to sell with the least effort. There are instances they sell properties very cheap when the owners are overseas and are easier manipulated to a lower price.. The faster the agent sells the faster they get their commissions. You keep a higher price you risk to never sell the property and taint your business reputation. Something else needs to be changed. Including ourselves. Especially when we do not want to work and are just waiting for freebies. "Oh dear government please grab it from them and pass it to me."
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                                                                                        • No.
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                                                                                          • What's the point restricting Real Estate Agents? The are built in a Balanced System. You touch it and it will collapse. You limit real estate prices and it will result in reduction of offer. You regulated further and you will become the U.S.S.R. where the prices were low and accessible but there was a small problem : " Prices -Yes, Merchandise - NO".. You can be happy keeping your money as there is nothing in the market to use your money for. The market is empty. Better to fix the buyers. Some of the do never work. Some of the squander what they earn on travel and leisure and other "enjoyable stuff" as they DESERVE IT. Then start blaming everyone.
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                                                                                            • I think it's always about what the market will accept. When interest is high house prices are low so now while interest rates are low house prices will be high. If you are after a bargain my advice is to wait because what goes up always comes down again. It's a fact of life.
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                                                                                              • In my country town the prices have gone up over the last 2 years its very good for the sellers as the prices where quite low before
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                                                                                                • Did not know that
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                                                                                                  • Also remember the agent works for the seller not the buyer and it is the responsibility of the Agent to get as much as possible for the seller. Of course their fees are also higher so they have an added incentive to get as much as they can for any property.
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                                                                                                    • You are wrong. They want to sell as fast as possible with the least effort. Grab the commission and say good buy to the Seller.
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                                                                                                    • Then why are the prices going up? The ones I know want to sell fast but also at the highest price possible. They work on the theory that if the buyer isn't given a lot of time they will part with a larger amount of money then they otherwise would have.
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                                                                                                    • Igor AColin L 88398
                                                                                                      That is absolutely beyond the agent's control. The economy, the inflation, cost of materials, cost of labour, logistics, investor risks. The investors won't touch anything which is a loss. If they loose they will move their money elsewhere or will just spend it. Probably the reason is that the dollar is going down some places faster, some place slower.
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                                                                                                    • Yet housing is the best place to invest at the moment. Banks cost you money leaving it there, the Stock Market is it's usual Volatile Self so if you have money and want it to earn something part way useful where would you put it? There is also a bidding war between home buyers and Investors where it's better to spend more than what the property is worth to get a return that simply would not happen elsewhere. Here I'm not thinking of new builds but established homes so materials are not an issue it is just a matter of how much people are willing to pay and ideally quickly as that way they do not get the time to back out to a lower the price. Around here places are selling way over their values because the Investors are pushing up the prices at Auction. Houses listed for a fixed price generally are snapped up within a day or two provided that the price is within reason. Sure those so way overpriced sit there waiting for someone foolish enough but the rest just tend to disappear very quickly.
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                                                                                                    • Igor AColin L 88398
                                                                                                      I think the Government is not willing to interfere. You touch it and it will collapse and the housing problem will only get worse. Kiwi Build is inefficient because the private investors do not see it as profitable. The Government does not have the money. Of course the Government can print more money but then the prices will go up for everything and especially the housing. Printing too much money to my mind is the precursor of all troubles: the ominous signs are the US troops out of Aphganistan, COVID depicted as the true reason of Poor Economy etc..
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                                                                                                  • i believe they go by the council valuations on setting the price for houses. Its the council that is at fault, making the land more valuble which in turn they set the price for how much people pay in land rates.
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                                                                                                    • I agree with you Joanne
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                                                                                                    • Disagree completely. They as they go by the prices of what was actually sold just before, yesterday etc. They go by the market.
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                                                                                                    • No. I am sure the councils are just following the market trends trying to grab as mush in rates as they could. The council are not the reason here. They are the consequence.
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                                                                                                    • yeah but its council who advise what the land is actually worth, and yes they do go by what other houses sold for in the area, but its all based on the value of the land, the land is what is valuable not the house or other buildings on the property. that is why many people pay over and above what the land is actually worth. Rateable value (RV) is the 'value' of a property set by the local authority for the purpose of determining and allocating rates. ... Capital Value (CV) - based on recent comparable sales in the area. Land Value (LV) – based on recent sales of vacant section in the area. Value of Improvements – the CV minus the LV.
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                                                                                                  • I don't think land agents have much of a role in what houses sell for.
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                                                                                                    • setting the prices? where on earth did that come from? sure some are making a bomb, but have a look at how many real estate agents there are, how many start and stop each year and who are actually making the big dough. There was a survey done last year that showed the average "bomb" per land agent was $35,000 earned per year. And last year was a "silly prices" year, too.
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                                                                                                      • If you cannot beat them, join them.
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                                                                                                        • They are taking exorbitant profits on their commission
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                                                                                                          • A good question for any housing market, NZ or otherwise. Having been a Buyer/Seller and Landlord/Tenant I've often wondered who's best interest the agent has as prority. The only answer is most likely themselves! The higher the price the more commission, plus there's the glitzy awards dinner & the media coverage. $$ + ego = Satisfaction! I have known some really nice people who worked in that industry though, unfortunately usually seek less cut-throat alternative careers.
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                                                                                                            • you got it, Land Agents work for themselves, neither for the buyer nor the seller. In a lot of cases they'll beat the seller down because their commission on $50,000 less sale price is not much. They want the sale. Or they detect keenness in a buyer and they kid them into offering more than the shack is worth.
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                                                                                                          • People who are selling will always want the optimum price.
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                                                                                                            • Agents work on commission and they would NOT do anything willingly so they earn less. The more they sell a property for and the more a rent is worth, the more they make. Vendors set a price range and agents try to get it.
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                                                                                                              • I don't know anything about New Zealand current housing crisis.
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                                                                                                                • CAPITALISM is based on pure undiluted greed - aka - PROFITS (the market drives the price). If you start GAMING the economic system, then you end up with SOCIALISM (and NOBODY wants that)?!
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                                                                                                                  • Whats the average house price in Wellington?
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                                                                                                                    • View all 3 replies
                                                                                                                    • Now just over 1Million in Wellington city.
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                                                                                                                    • APBmary c
                                                                                                                      Oh well I won't be moving there then...
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                                                                                                                    • nah- too cold there!! I live 45 mins away- houses a bit cheaper and not as cold- tho cold enough. Have heater on already tonight.
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                                                                                                                  • So you are asking people who can sell things for a lot more...to sell them for a lot less?...well that's good for the person buying and worse for the person selling..and worse for the people who are trying to get some money out of the deal...why would they do this?
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                                                                                                                    • Grommie likes land agent signs, they often have 2 stakes in the ground and he can pee on both of them. agree your comments ... why not go with the market and get what you can. What altruism if someone wants to pay you a $mill and you say, oh, just give me $750k instead.
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                                                                                                                    • APBGrommie
                                                                                                                      In NSW they have found that the coreflute..the material real estate agents (and political parties) use for their signage is excellent material for making radio controlled planes out of....and if you collect it at night...quietly...its free....
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                                                                                                                  • They know that. It's how the rich get richer and the poor, poorer. Apparently, that's democracy. (Insert eye roll here)
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                                                                                                                    • Well it is up to people to pay the price so if they do how can you blame the agents. They are making money from the commissions and if you put 2 million on a house but it should be say 1.5 million people usually know it is worth less and will not pay that high price. It is crazy here in Australia as well. A unit next door to me went for $200,000 plus more over the price they bought it for 12 months earlier. A couple of other units in the same area and same condition had more realistic prices. So why did the one beside me go for such a high price I have no idea.
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                                                                                                                      • The market drives the price.
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                                                                                                                        • Yes cause am trying to buy my first home but prices too high.
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