hot property market

PHOTO: Photo: 123rf

A shortage of property listings is pushing desperate buyers to consider defective houses with works that are not consented.

Recent figures from the Real Estate Institute show the number of properties for sale has fallen to an all-time low.

This had contributed to the median house price rising nearly 26 percent in the past 12 months to $850,000.

Auckland law firm TM Bates Co said it had come across a number of examples in recent months where buyers had put big offers on properties that had unconsented additions.

“Because the market is so hot, and despite those would-be purchasers having those defects of [the property] drawn to their attention, they are still going along to auction or into those negotiations and being prepared to put their best foot forward in terms of an offer, without necessarily factoring in the kind of discounts that perhaps someone like myself would be recommending they do,” solicitor Tim Bates said.