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An Auckland couple is fuming amid allegations a real estate agent told potential buyers their home would sell for nearly $200,000 less than the figure quoted to them.
Richard Bearda and Kim Thompson listed their North Shore property with Harcourts after the agent, Carole Malone, said it could
fetch $700,000 to $750,000 at auction.
The four-bedroom home in Beach Haven has three bathrooms and sea views. Another agent's valuation was about $650,000.
But Bearda said that Malone later quoted a sale price of between the low $400,000s and the low $500,000s to potential buyers.
The lower figure allegedly quoted by Malone was discovered when a local and friend of the couple sought the asking price at an open home.
"The agent said, and I quote: `The high $400s... low $500s, depending, of course, on the auction. Anything could happen. Who knows?' she wrote in a signed statement."
Rebecca Stapleford, a teacher of Bearda's daughter, was told during an open home the house was expected to sell in the low to mid-$500,000 mark.
"Having looked at other open homes in the area, we were surprised and wondered why the house was being sold for such a low price," Stapleford said in a signed statement.
Bearda and Thompson took their case to the Real Estate Institute but it was dismissed without explanation. They plan to take the case to the Disputes Tribunal.
Martin Cooper, principal at Harcourts Milford, said that the company had done nothing wrong and considered the statements "untrue".
He said the branch had a 75 per cent success rate during 270 auctions in the past year with the Sea View Ave property the sole complaint.
Malone didn't return Herald on Sunday calls but, in a letter to the REINZ, said she quoted the couple a range of the mid to high $600,000s, with $700,000 the premium price. She also told them unpermitted renovations may deter potential buyers.
In her letter, Malone said market feedback following well-attended open homes was from the high $500,000s to low $600,000s.
The letter stated: "We believe we acted in a professional manner at all times and in the best interests of our client," and
"sincerely apologised for any stress or disappointment caused from their dealings".
Bearda told the Herald on Sunday the couple was left with a $5000 bill to advertise the auction last November, only to have the property pass in at a top bid of $550,000.
The house was sold last April for $625,000 through another agent.
"But every time we had meetings with Harcourts they were adamant they had done nothing wrong," said Bearda. "The quicker the Government fixes REINZ the better."
Associate Justice Minister Clayton Cosgrove has spearheaded the Real Estate Agents Bill, which the Government wants to replace the 1976 Real Estate Agents Act with before the upcoming election.
The bill would remove the institute's regulatory powers and create a Real Estate Agents Authority to handle licensing, complaints, disciplinary and enforcement processes and to set industry standards and give offer advice to consumers.
Cosgrove said the bill would help consumers and agents against the perceived lack of credibility with the current system.
"People do not have the confidence in the current system because they see it as in-house; they see it as judge and jury," he said.
REINZ vice-president Mike Elford said the couple had tried to set an unrealistic reserve price at their auction. He said he was satisfied the complaint had been thoroughly investigated and the agent did not breach any rules.
"All agents work in the best interests of the seller," he said.
