Did my real estate agent rip me off?

Thursday, 14 March 2019

Sometimes, salespeople put the pressure on to get a deal done. You shouldn't be left feeling like you've been taken advantage of.

I settled my property today, which should have been wonderful but I have been left with a sour taste in my mouth. My agent told me to drop my price $10,000 because the cross-lease had legal issues to sort and it would get the sale done. I agreed. Then, she said two roofers said it needed reroofing at $30,000 plus outbuildings and it could be more because the batons needed replacing. I had the roof problem reported on when I purchased. The galvanisation was good, replace one sheet, renail, repaint. I asked to see the two quotes. She sidestepped. She said if I dropped $10,000, we had a deal. I agreed. Two days ago I found out from my tenant no roofers came to the house to her knowledge. Further, the building inspector of the roof was the agent's husband. I met the new owner yesterday and when I raised the question of the roof he said, when it needs reroofing, he'll fix it. What is your opinion of this situation?

I think it's pretty common for real estate salespeople to suggest that you lower your price expectations to meet the market. But you should never be left feeling that you've been ripped off, as it seems you do.

I asked Bindi Norwell, chief executive at the Real Estate Institute, what she thought.

She said, under rule 6.4 a licensee must not 'mislead a customer or client, nor provide false information, nor withhold information that should by law or fairness be provided to a customer or client'.

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'Whilst we do not have the full story, based on the allegations made, our advice would be in the first instance to talk to the agent's manager or principal and if the issue can't be resolved, then to make a complaint to the Real Estate Authority in order to fully investigate the alleged incident.'

Without setting foot in any bank, we have calculated that with our KiwiSaver entitlements, withdrawals and savings we have $50,000 for a deposit ($11,000 of our own savings). We are also in debt of almost $11,000 and we could use our own saved money to clear this debt, to make us look better on paper, but then would be left with only our KiwiSaver entitlements for a deposit of$39,000 which still could work for us as we are eligible for a Welcome Home Loan. Can you get a home loan using only KiwiSaver?

You can get a loan using only KiwiSaver, but in this case, it would be helpful to get some personalised advice.

Broker Glen McLeod, of Edge Mortgages said, while repaying short-term debt could be advantageous, it was worth weighing up all the options.

'Until we understand affordability and the purchase power of the client it is better to hang on to all the deposit funds. Being left with $39,000.00 would mean max purchase price of $390,000, which may or may not work in the area that the client lives. Having $50,000 enables a maximum purchase price of $500,000.'

Do you have a personal finance or consumer question you'd like answered? Email susan.edmunds@stuff.co.nz