'By Negotiation' Property Ads Frustrating Auckland Buyers

January 11, 2016 at 10:07 AM

Auckland property analyst and investor Olly Newland told Radio New Zealand recently that selling Auckland houses 'by negotiation' without a guide price was very frustrating for buyers.

A mandatory price indication for houses should be required, Newland said. "People don't know what range they're in and get very frustrated. People are pretty fed up with this 'by negotiation' and when you see a price on a property, at least you know where you're going and can start negotiating properly. It's always been a bugbear of mine that there's no price guide at all. In my view it should be a compulsory price guide," he said.

"Price by Negotiation” or advertising without a sale price is a marketing approach that an agent may suggest when it's hard to estimate the price a property is likely to sell for. Agents say it attracts a wide pool of potential buyers interested in your property type and location and allows potential buyers the right to negotiate. However, they also note that potential disadvantages may include a lack of ‘urgency’ and according to Newland, most people lose interest in a property if they have no idea of the vendors price expectations.

QV figures show the average Auckland house price is $930,000, with the median rent also hitting a new high of more than $500 a week. But at the same time, the slowing auction sales and increasing number of houses with price guides may be an indication that the Auckland property market is cooling.

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Category: Auckland Property