They are also more aware about the work of Real Estate Authority, data shows
New Zealand customers are feeling more empowered in real estate transactions and more confident in the real estate profession, despite a tumultuous property market.
This was according to independent conduct regulator and consumer protection agency Real Estate Authority (REA).
REA’s latest Annual Perceptions Research indicated strong consumer confidence in the conduct of the real estate sector overall, with significant gains across perceptions that it is professional, well-monitored, well-regulated, fair, and transparent.
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“We are pleased to see the indicators of high conduct standards are moving in the right direction, particularly during a time which placed additional pressures on both consumers and licensed real estate professionals, with COVID-19 restrictions and changing market conditions,” said Belinda Moffat, REA chief executive. “However, we recognise that there is still more work to be done to continue to ensure all professionals meet the high standards expected.”
The research found that 85% of real estate consumers had some to a lot of confidence in the New Zealand real estate industry overall, which Moffat said reflects the positive regulatory impact of REA, as well as the high professional standards of licensed real estate professionals.
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Some 86% of all the respondents felt very or somewhat empowered to participate effectively in real estate transactions, while 91% of Maori consumers surveyed felt very or somewhat empowered to participate effectively in real estate transactions.
This sense of empowerment in a real estate transaction, Moffat said, can indicate that customers are feeling well-informed and appropriately in control of their part of the buying and selling process, with the conduct of the real estate professional involved a big contributing factor.
The research also showed a growing consumer and public awareness of REA. Some 69% of all consumers said they were aware of REA, a 6% rise from 2021, while 74% of Maori consumers and 81% of consumers who identified as Pacific Peoples said they were aware of REA. Some 79% of consumers said REA provides clear and independent information, and 78% believed REA was trustworthy and provides information accessible to everyone.
In regard to REA’s consumer website, settled.govt.nz, the research found that 84% of consumers agree or strongly agree that site was trustworthy, 76% felt more knowledgeable after visiting the site, and 92% found the consumer guides somewhat to very useful.
The research also suggested that buyers are gathering property information while more vendors are withholding it.
Nine out of 10 buyers (94%) were found to have obtained additional information about a property (such as a building inspection report, Land Information Memorandum, or title search) before purchasing it.
“While the research suggests almost all buyers are obtaining some form of additional information, each individual type of documentation was obtained by less than half of all buyers,” Moffat said. “This suggests that some buyers are undertaking only limited due diligence, which is a risk REA recommends buyers look to avoid.”
Another concerning finding is that 29% of sellers indicated there was something about their property they were glad the buyer did not know.
Moffat stressed sellers must divulge information on all relevant issues with a property, including unconsented alterations, boundary issues, or water-tightness issues.
“If sellers are unsure on what to declare, they should discuss this with their licensee or lawyer,” she said. “A seller acting in good faith should put themselves in the shoes of the buyer and think about what they would like to know if they were buying the property.”
