Norman Conquest

It pays to be aware of real estate agents who work for a type of buyer who tries to buy houses at bargain prices, so as to make a quick sale for a handsome capital gain. Such agents tend to work in conjunction with a particular mortgage broker and a valuer. Their activities are not unethical provided they are not presenting a falsely inflated valuation to the end buyer. This has been going on since the '60's and is very active in periods of low interest rates (beware rate review hikes). The Kirk/Rowling Labour government brought in a capital gains tax in the '70's to try to curb house price inflation at that time, but the Muldoon government did away with it - surprise, surprise. It is mainly locals who are involved in this activity. Over a period of time it has had a marked effect on house prices and is a major driver. It is hard to detect who, exactly, is involved - just be aware of it. Get a second opinion and references, and drive as hard a bargain as you can.

MrsFychan

up to the seller what they sell it for not the buyer.

Norman Conquest

That's true, but these people are experts at spotting urgent sales. As I say, it's not unethical unless they are up tricks. For instance, it was once a practice to hoist mortgage repayments on review to an unaffordable level and then foreclose when the mortgagee defaulted, ending up with the property at a cheap price and selling it on for a much higher price. I think that might be still possible but I am not aware of any instances that could be proved. The mortgage rate hoisting I mentioned went on in West Auckland in the seventies and eighties. It's an example of what could be done.