PHOTO: Is your house really worth what you’ve been told… or what today’s buyers are actually willing to pay? FILE

Why overpriced listings, unrealistic expectations and mixed market messaging could be hurting vendors more than helping them

🏡 The Hard Truth Sellers Need to Hear

If you’re selling a home in New Zealand today, here’s a question worth asking:

Is your house really worth what you’ve been told… or what today’s buyers are actually willing to pay?

It’s an uncomfortable question.

But in a market that Cotality has described as experiencing the longest and deepest housing downturn in 30–40 years, uncomfortable questions need honest answers.

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📉 The Market Has Changed — Have Expectations?

For many homeowners, the benchmark remains 2021.

That was a market where:

✅ Homes sold in days.

✅ Multiple offers were common.

✅ Auctions attracted packed crowds.

✅ Buyers competed against each other.

Today’s market couldn’t be more different.

Many homes are sitting on the market for weeks—or months—as buyers take their time, compare options and negotiate hard. Elevated listing levels and cautious buyer confidence continue to give purchasers stronger bargaining power than they’ve enjoyed for years.

🤔 Are Some Agents Telling Vendors What They Want to Hear?

Let’s be clear.

Most real estate agents work hard, act professionally and genuinely want the best outcome for their clients.

But there is an uncomfortable reality within the industry.

Winning a listing is competitive.

And sometimes the easiest way to secure that listing is by telling a homeowner exactly what they want to hear.

💬 “I think we can get $1.3 million.”

The problem?

Another agent may privately believe the property is worth closer to $1.15 million.

Guess who often wins the listing?

📋 The Cost of Overpricing

An overpriced home doesn’t just sit there.

It can actually become less attractive.

Buyers begin asking:

❓ “What’s wrong with it?”

❓ “Why hasn’t it sold?”

❓ “If nobody else wants it, maybe we shouldn’t either.”

Eventually many vendors reduce their asking price.

Sometimes more than once.

Ironically, they may end up selling for less than they might have achieved had the property been priced realistically from day one.

🏠 Buyers Hold the Power

Today’s buyers have something they haven’t enjoyed for years:

✔️ Choice.

✔️ Time.

✔️ Negotiating power.

High listing levels mean many purchasers can simply walk away if a property feels overpriced. Cotality has repeatedly noted that buyers retain meaningful negotiating leverage while sellers generally aren’t being forced into distressed sales.

📢 The Industry Message Doesn’t Always Match the Data

One week we hear:

📈 “Confidence is returning.”

The next week:

📈 “Now is a great time to sell.”

Yet the numbers continue telling a more cautious story.

Recent market updates have shown subdued sales activity, flat or slightly declining values nationally, and Auckland and Wellington remaining among the weakest major centres.

Optimism has a place.

But optimism should never replace evidence.

💬 Sellers Deserve Honest Conversations

Imagine hearing this instead:

“Your home is beautiful. But today’s buyers are comparing it with dozens of other properties. If we price it realistically, we create competition. If we overprice it, we risk helping sell everyone else’s home first.”

That’s not negative.

That’s professional.