Vendor-agent relationships strengthening

He says the majority of sellers are meeting the market in terms of asking price at agents' coaxing because they are realising agents merely won't waste their time with a house that is over-priced, due to there being a surplus of properties for sale on the market.

Realestate.co.nz released figures on July earlier this week, show asking prices fell almost $10,000 from June to $400,481 last month, reflecting vendors' acquiescence to meet the current market, while the inventory of unsold houses on the market rose to the equivalent of 46.8 weeks' worth, or 52,404.

"Agents don't want to list a property and put up with a four-week marketing campaign when they know a house is priced out of the market," Helm says.

"People need to be realistic. If they want to sell, they've got to price accordingly."

He says people are taking more heed of real estate agents' opinions and advice in the current market and sellers are relying more heavily on them to help with pricing.

"Not that people didn't listen to agents before, but I think it's more prevalent currently," Helm adds.

However, Barfoot & Thompson managing director Peter Thompson says the interaction between vendors and agents is much the same as it has always been, but that the more important aspect of the agent-vendor relationship is an increase in communication.

Thompson says the company is pushing for agents to act as a feedback channel between potential buyers and vendors, in order for vendors to keep up with what's really happening in the market.

"Communication is the most important factor in this market. It's a way to see a pattern of what [prospective buyers] are thinking," he says.

As a result of open feedback lines, Thompson says some vendors have dropped their prices to be in line with market expectations.

He says the majority of vendors are receptive to feedback from open homes, but that there will always be the few that will stick to their guns in terms of price, either because they need to obtain X amount in order to refinance, or because they think their property is worth more than what the market is saying.