JUNE 2015 REAL ESTATE AGENTS AUTHORITY ANNUAL PERCEPTIONS RESEARCH

JUNE 2015

REAL ESTATE AGENTS AUTHORITY

ANNUAL PERCEPTIONS RESEARCH

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3RESEARCH OBJECTIVES

NOTES TO THE REPORT

PERCEPTIONS OF THE REAL ESTATE INDUSTRY AMONG NEW ZEALANDERS

CONTENTS PAGE

APPENDIX: KEY INDICATORS KEY RESULTS FOR THE ANNUAL REPORT

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5

33

PERCEPTIONS OF THE REAL ESTATE TRANSACTION PROCESS AND

RATINGS OF REAL ESTATE AGENTS AMONG THOSE WHO HAVE HAD A REAL ESTATE

TRANSACTION IN THE LAST 12 MONTHS

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RESEARCH OBJECTIVES

In order to get an understanding of perceptions of the real estate industry among the general public, four questions were added to Nielsen’s Online Omnibus. This survey asked questions about confidence in the real estate industry, awareness of REAA, the perceived impact that the REAA has on consumer protection and knowledge of people’s rights and obligations in real estate transactions. Note: The Nielsen Omnibus runs fortnightly and surveys 700 people from the New Zealand population. The sample is structured so that it is representative of the New Zealand population by age, gender and region. The final sample is then weighted to account for any minor imbalances the sampling matrix was unable to account for.

A separate stand-alone survey was conducted online among those who had bought, sold, put an offer or received an offer on a property in the last 12 months. The survey asked specific questions about the process and materials available to consumers, perceptions of their real estate agent, awareness of, and interactions with REAA. Loose regional quotas were used to ensure a range of geographic areas were covered. Quotas were not set for age or gender as there are natural skews given the type of people being surveyed.

Fieldwork for both surveys took place between 28 May and 3 June 2015.

TO UNDERSTAND CONSUMER PERCEPTIONS OF THE REAL ESTATE

INDUSTRY AMONG ALL NEW ZEALANDERS

TO UNDERSTAND THE PERCEPTIONS OF REAL ESTATE AGENTS AND THE

TRANSACTION PROCESS AMONG THOSE WHO HAVE HAD A REAL ESTATE TRANSACTION WITHIN THE LAST YEAR

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NOTES TO THE REPORT

All differences mentioned in this report are statistically significant at a 95% confidence interval. This means that the difference is a true difference

statistically and not due to random variation.

When subgroup differences are mentioned in the text boxes, the results outlined are always in

comparison to the total result of all those who answered the question unless stated otherwise.

For example, in slide 6 it says that those aged over 55 years (83%) are more likely to be aware of the REAA.

This means that 83% of those aged over 55 are aware of the REAA, which is significantly different from the total population

in which 71% are aware of the REAA.

‘Don’t know’ responses have been included in the main report as it is a valid response and we need to see these

changes over time. However, key indicators shown in annual reporting exclude ‘don’t knows’ and are included in the

Appendix.

PERCEPTIONS OF THE REAL ESTATE INDUSTRY AMONG NEW

ZEALANDERS

Results from the Nielsen Online Omnibus reflective of the New Zealand population

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OVERVIEW

Similarly to the previous measures, 7 in 10 have at least

heard of the Real Estate Agents Authority.

Awareness continues to be higher amongst older New

Zealanders and lower among younger New Zealanders aged

15 to 24.

Levels of awareness is similar across the country. However, those living in Auckland are

more likely to know a reasonable amount about

what the REAA does.

Two thirds of New Zealanders are confident that the Real Estate

Industry is professional (65% rating it 3, 4 or 5 out of 5 with 5 being a lot of confidence). Just over half

(55%) believe it is well-regulated, and well-monitored (54%). Some 51% feel that the industry is fair.

Compared to previous measures there is less confidence in the

industry in terms of being professional and fair.

Half (50%) of New Zealanders have at least some knowledge of their rights and obligations

with respect to real estate transactions, a slight drop from previous measures.

Those who know more about the REAA and what they do continue to be more likely to

say they have more knowledge of their rights and obligations.

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7Q2. Do you know what the Real Estate Agents Authority (REAA) does? Base: All respondents

AWARENESS OF REAA AMONG NEW ZEALANDERS

SEVEN IN TEN (71%) NEW ZEALANDERShave heard of the REAA, a result which has remained stable since 2012.

NEVER HEARD OF THEM

HAVE HEARD OF THEM BUT KNOW ALMOST NOTHING

KNOW A LITTLE

KNOW A REASONABLE AMOUNT

30%

29%

31%

9%

30%

30%

29%

11%

30%

29%

29%

12%

29%

31%

28%

11%

2015 (n=700) 2014 (n=701) 2013 (n=702) 2012 (n=700)

TOTAL AWARENESS OVER

TIME2015: 71%2014: 70%2013: 70%2012: 70%

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8Q2. Do you know what the Real Estate Agents Authority (REAA) does? Base: All respondents

WHO IS MORE OR LESS AWARE OF REAA?

WHO ARE MORE LIKELY TO BE AWARE OF THE REAA (compared to the total result of 71%)?

• Those with a personal income of $40,000 to $59,999 (80%), $60,000 to $79,999 (87%) or $80,000 or more (83%)

• Those who are aged 55 years and older (83%)• Those who are working full time (81%)• Those who are older with no children living at

home (80%)

WHO ARE LESS LIKELY TO BE AWARE OF THE REAA (compared to the total result of 71%)?

• Those with a household income of $19,999 or less (49%)

• Those who are not a main household shopper (55%)

• Those who are currently not working (64%)• Those who are aged 15 to 24 (67%)• Females (67%)

SUBGROUP DIFFERENCES

TOTAL

71%

TOTAL

71%

15 TO 24 (n=142)

25 TO 39 (n=176)

40 TO 54 (n=189)

55+ (n=193)

56%68% 72%

83%

AUCKLAND (n=251)

NORTH (n=143)

CENTRAL (n=149)

SOUTH (n=157)

70% 67% 71% 74%

While those living in Auckland are no more aware of the REAA at a total level, they are more familiar with 16% stating that they

know a reasonable amount about what the REAA does (cf. 11%).

Significantly higher / lower than total result

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59%60%

56%51%

56%60%59%

54%

57%64%

62%55%

71%71%71%

65%

Q1. To what extent do you have confidence that the Real Estate Industry in NZ is …

CONFIDENCE IN THE REAL ESTATE INDUSTRYTwo thirds of New Zealanders are confident that the Real Estate Industry is professional (65% rating it 3, 4 or 5 out of 5 with 5 being a lot of confidence). Just over half (55%) believe it is well-regulated, and well-monitored (54%). Some 51% feel that the industry is fair.

As seen in the previous measures, New Zealanders confidence with the Real Estate Industry being professional continues to be highest amongst all attributes. However, there has been a significant decrease in this attribute compared to 12 months ago and confidence in the professionalism of the industry is at the lowest level to date.

Confidence in the industry being well regulated has also decreased significantly and returned to levels seen in 2012. Perceptions of the industry being fair is showing a downward trend over time.

Base: All respondents

% RATED 3, 4 OR 5 WITH 5 BEING A LOT OF CONFIDENCE

PROFESSIONAL WELL REGULATED

WELL MONITORED FAIR

2015 (n=700)2014 (n=701)2013 (n=702)2012 (n=700)

Significant decrease from 2013 to 2015

Significantly higher / lower than previous wave

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10Q1. To what extent do you have confidence that the Real Estate Industry in NZ is …

13%

15%

14%

12%

13%

12%

12%

7%

23%

19%

19%

15%

32%

33%

32%

34%

15%

15%

17%

21%

4%

6%

6%

10%

Don't know 1 - No Confidence at all 2 3 - Some confidence 4 5 - A lot of confidence

WHO HAS MORE OR LESS CONFIDENCE IN THE REAL ESTATE INDUSTRY?

Base: All respondents 2015 (n=700)

65%

55%

51%

54%

PROFESSIONALThose who know a little about what REAA does (75%) are significantly more confident that the real estate industry is professional, while households with children aged 5 to 15 years old (56%) or households with an income of less than $19,999 (41%) are less likely to say they are confident.

WELL MONITOREDThose who know a little about what the REAA does are more likely to be confident that the Real Estate Industry is well monitored (65% cf. 54%). While those with a household income of less than $19,999 or less (33%) are significantly less likely to be confident.

FAIROlder couples with no children living at home (58%) or those who work full time (56%) are significantly more likely to say they are confident the Real Estate Industry is fair (cf. total 51%). While those with a personal income of $19,999 or less (42%) are significantly less likely to be confident.

WELL REGULATEDThose with personal income of $19,999 or less (47%) or those who are unemployed are significantly less likely to say they are confident (50% cf. total 55%).

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TOTAL

51%TOTAL

54%

TOTAL

55%

TOTAL

65%

15 to 24 25 to 39 40 to 54 55+

66% 61% 63%71%

15 to 24 25 to 39 40 to 54 55+

49% 49% 48%57%

15 to 24 25 to 39 40 to 54 55+

55% 51% 51%

65%

15 to 24 25 to 39 40 to 54 55+

56%50% 50%

62%

Base: All respondents 2015 (Total n=700, 15 to 24 n=142, 25 to 39 n=176, 40 to 54 n=189, 55+ n=193)

PROFESSIONAL

FAIR

WELL REGULATED

WELL MONITORED

CONFIDENCE IN THE INDUSTRY BY AGEConfidence in the industry among those aged 55 years or over are significantly higher across all aspects. Those aged 25 to 39 are significantly less confident than they have been in the past.

Q1. To what extent do you have confidence that the Real Estate Industry in NZ is … % rated 3, 4 or 5 with 5 being a lot of confidence

Significantly lower than previous wave

Significantly higher than total result

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TOTAL

51%TOTAL

54%

TOTAL

55%

TOTAL

65%

Auckland North Central South

59%51% 53% 51%


68% 67% 63% 61%


53% 49% 53% 48%


57% 55% 55% 51%

Base: All respondents 2015 (Total n=700, Auckland n=251, North n=143, Central n=149, South n=157)

CONFIDENCE IN THE INDUSTRY BY REGIONLevels of confidence in the industry are consistent across all regions.


PROFESSIONAL

FAIR

WELL REGULATED

WELL MONITORED

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TOTAL

51%

TOTAL

54%

TOTAL

55%

TOTAL

65%

know a rea-sonable amount

know a little heard of them but know al-most nothing

never heard

60% 65%56%

39%



never heard

65% 69%56%

37%



never heard

70% 75%67%

52%



never heard

54%63%

54%

35%


* Warning small base size

Base: All respondents 2015 (Total n=700, know a reasonable amount n=75*, know a little n=195, heard of but know nothing about n=219, never heard of n=211)

CONFIDENCE IN THE INDUSTRY BY AWARENESS OF REAAThose who know a little about what REAA does are more likely to have higher confidence in the industry, while those who are not aware of the REAA continue to have lower levels of confidence. Those who have never heard of the REAA are driving the overall decreases in confidence.

PROFESSIONAL

FAIR

WELL REGULATED

WELL MONITORED



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Almost three quarters (74%) of those who know at least a little about what the REAA does say that REAA makes at least some difference to their consumer protection when buying or selling property. This proportion has remained consistent after a slight drop in 2014 (75%, from 80% in 2013).

* Warning small base size** Warning VERY small base size

Base: All respondents who know what the Real Estate Agents Authority (REAA) does

DO NEW ZEALANDERS THINK THE REAA MAKES A DIFFERENCE TO CONSUMER’S PROTECTION WHEN BUYING OR SELLING PROPERTY?

Q3. What difference do you think the Real Estate Agents Authority makes to your consumer protection when buying or selling a property?

2012 (n=287)

2013 (n=280)

2014 (n=273)

2015(n=270)

7% 4% 6% 4%

7%6% 7% 10%

12%10%

12% 11%

47%

44%46% 47%

18%24%

21% 19%

9% 13% 8% 9%

5 - A LOT OF DIFFERENCE

4

3 - SOME DIFFERENCE

2

1 - NO DIFFERENCE AT ALL

DON'T KNOW

74%81% 75% 74%

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TOTAL

74%TOTAL

74%


Base: All respondents who know what the Real Estate Agents Authority (REAA) does

PERCEPTIONS OF THE REAA’S INFLUENCE ON CONSUMER’S PROTECTION BY AGE AND REGION

Q3. What difference do you think the Real Estate Agents Authority makes to your consumer protection when buying or selling a property?

15 TO 24 (n=35**)

25 TO 39 (n=66*)

40 TO 54 (n=78*)

55+ (n=91*)

74% 76% 71%77%

AUCKLAND (n=99*)

NORTH(n=53*)

CENTRAL (n=54*)

SOUTH (n=64*)

75% 75%84%

66%

% rated 3, 4 or 5 with 5 being a lot of difference


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DO NEW ZEALANDERS KNOW THEIR RIGHTS AND OBLIGATIONS IN REAL ESTATE TRANSACTIONS?Knowledge of their rights and obligations with respect to real estate transactions has decreased slightly (though this decrease is not significant).

Q4. Do you consider you have enough knowledge of your rights and obligations with respect to real estate transactions? Base: All respondents

2012 (n=700)

2013 (n=702)

2014 (n=701)

2015(n=700)

7% 6% 5% 7%

15% 18% 19%20%

23% 21% 21%22%

40% 42% 41%39%

10% 9% 11% 9%5% 3% 4% 2%

DON'T KNOW 1 - NO KNOWLEDGE AT ALL 2 3 - SOME KNOWLEDGE 4 5 - A LOT OF KNOWLEDGE

55% 54% 56%50%

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WHO ARE MORE OR LESS LIKELY TO KNOW THEIR RIGHTS AND OBLIGATIONS?

Q4. Do you consider you have enough knowledge of your rights and obligations with respect to real estate transactions? Base: All respondents

WHO ARE MORE LIKELY TO KNOW THEIR RIGHTS AND OBLIGATIONS IN REAL ESTATE TRANSACTIONS? (compared to the total result who rated their knowledge 3, 4 or 5, 50%)

Those who:• Know a reasonable amount about what the REAA does

(77%) or know a little (73%)• Have personal income of $80,000 or over (70%)• Are aged 55 or over (68%)• Have a household income of $60,000 to $79,999 (62%)• Are an older couple with no children living in the household

(62%)• Are male (55%)


WHO ARE LESS LIKELY TO KNOW THEIR RIGHTS AND OBLIGATIONS IN REAL ESTATE TRANSACTIONS? (compared to the total result who rated their knowledge 3, 4 or 5, 50%)

Those who:• Have never heard of the REAA (20%)• Aged 15 to 24 (34%)• Have personal income of $19,999 or less (37%)• Are couple with children aged 5 to 15 years old (42%) or

couple with children aged 16 years or over living at home (40%)

TOTAL50%

TOTAL50%

AUCKLAND (n=251)

NORTH (n=143)

CENTRAL (n=149)

SOUTH (n=157)

50% 48% 52% 51%

15 TO 24 (n=142)

25 TO 39 (n=176)

40 TO 54 (n=189)

55+ (n=193)

34%46% 49%

68%

% rated 3, 4 or 5 out of 5 with 5 being a lot of knowledge

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TOTAL

50%

DOES KNOWLEDGE OF RIGHTS VARY BY KNOWLEDGE OF REAA?The majority of those who know a little bit or a reasonable amount about the REAA continue to be more likely to feel they have at least some knowledge of their rights and obligations with respect to real estate transactions. Among those who have never heard of the REAA, knowledge has decreased significantly.

Q4. Do you consider you have enough knowledge of your rights and obligations with respect to real estate transactions?Q2. Do you know what the Real Estate Agents Authority (REAA) does? Base: All respondents 2015(Total n=700, know a reasonable amount n=75*, know a little n=195, heard of but know nothing about n=219, never heard of n=211)

TOTALKNOW

A REASONABLE

AMOUNT

KNOW A LITTLE

HAVE HEARD OF

THEM BUT

KNOW ALMOST NOTHING

NEVER HEARD

1 - No knowledge

at all20% 10% 5% 17% 41%

2 22% 11% 20% 28% 22%

3 - Some knowledge 39% 36% 56% 44% 18%

4 9% 29% 15% 4% 1%

5 - A lot of knowledge 2% 12% 2% 1% 0%

Don't know 7% 1% 2% 6% 16%know a reasonable

amount

know a little

have heard of them but

know almost nothing

Have never heard

77% 73%

49%

20%

% rated 3, 4 or 5 out of 5 with 5 being a lot of knowledge



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Q4. Do you consider you have enough knowledge of your rights and obligations with respect to real estate transactions?Q2. Do you know what the Real Estate Agents Authority (REAA) does?

2012 (n=700

)

2013 (n=702

)

2014 (n=701

)

2015 (n=700

)

2012 (n=67*)

2013 (n=77*)

2014 (n=78*)

2015 (n=75*)

2012 (n=220

)

2013 (n=203

)

2014 (n=195

)

2015 (n=195

)

2012 (n=204

)

2013 (n=212

)

2014 (n=203

)

2015 (n=219

)

2012 (n=209

)

2013 (n=210

)

2014 (n=225

)

2015 (n=211

)

55% 54% 55%50%

89% 86%82%

77%70%

78%70% 73%

51% 49%56%

49%

32%26% 29%

20%

% Rated Knowledge of Real Estate Transactions Rights and Obligations (rated 3, 4 or 5 out of 5 with 5 being a lot of knowledge)

AND HOW DOES THIS COMPARE OVER TIME?

Base: All respondents

TotalYes, I know a reasonable

amount about what they do

I know a little about what they do

I have heard of them but know almost

nothing about what they do

I have never heard of them



PERCEPTIONS OF THE REAL ESTATE TRANSACTION PROCESS AND RATINGS

OF REAL ESTATE AGENTS

Results from the stand alone survey asked only of those who have had a real estate transaction in the last year

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OVERVIEW

A good spread of the various real estate transactions was achieved in this survey with 43% who bought a property, 37% who put an offer on a property but didn’t end up buying it, 28% who sold a property, and 16% who

received an offer but didn’t end up selling it in the last 12

months.

Among those who sold a property, two thirds (64%) recall

receiving the New Zealand Residential Property Agency

Agreement guide prior to agreeing a contract. This is

slightly lower than the 2014 result which was a significant

decrease from 2013. The majority (74%) however, still

found this guide to be at least somewhat useful.

Around two thirds (65%) of those who should have received the New Zealand Property Sale and Purchase Agreement Guide prior to making or accepting an

offer recall receiving a copy. Nine in ten (90%) found the

guide at least somewhat useful.

The majority (89%) continue to feel at least somewhat empowered and able to participate effectively in

their real estate transaction.

Those who received an offer on their property but didn’t end up selling it are more

likely to say that they do not feel at all empowered.

Overall ratings of the real estate agent are still quite

positive with at least eight in ten rating their real estate

agent at least good across a wide range of attributes.

Eight in ten (83%) of those who have had a real estate transaction in the

last 12 months have at least heard of the Real Estate Agents Authority.

Awareness is significantly higher than levels seen among all New Zealanders

(71%), in addition they are more familiar with what the REAA does.

Among those who are aware of the REAA and had a real estate

transaction in the last 12 months, a third (33%) have had an interaction

with the REAA (16% visited the website, 14% received guidance from

staff via the phone, 9% received guidance via email). These

interactions are all rated highly with at least 92% finding the information

and/or guidance they received useful.

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22Base: All respondents

YES, RECEIVED AN OFFER FOR A PROPERTY BUT DIDN'T END UP SELL-

ING IT

YES, SOLD A PROPERTY

YES, PUT AN OFFER IN ON A PROPERTY BUT DIDN'T END UP

BUYING IT

YES, BOUGHT A PROPERTY

12%

35%

35%

43%

15%

39%

27%

48%

13%

29%

34%

46%

16%

28%

37%

43%

2015 (n=200) 2014 (n=218) 2013 (n=200) 2012 (n=200)

WHAT TRANSACTIONS HAVE TAKEN PLACE IN THE LAST 12 MONTHS?Among those surveyed, the most common transaction that has taken place in the last 12 months continues to be the purchase of property. After a significant drop in 2014, the proportion who have sold a property has remained stable, while the proportion who have put an offer in but didn’t end up buying it has increased since 2013 and is now at a similar level as the baseline measure conducted in 2012.

Q1. Have you in the last year bought, sold, received or put an offer in on a residential property using a real estate agent?

• Those aged 40 to 54 (61%), working full time (51%) and females (50%) are more likely to have bought a property in the last 12 months (compared to the total result of 43%)

• Those who are aged 55 years and over are more likely to have sold a property in the last year (39% cf. 28%), as those who are retired (49%)

• Those aged 25 to 39 are more likely to have put an offer on a property but didn’t end up buying it (48% cf. 37%).


Significant increase from 2013 to 2015

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AWARENESS OF REAA AMONG THOSE WHO HAVE HAD A REAL ESTATE TRANSACTION IN THE LAST 12 MONTHS

Q23. Do you know what the Real Estate Agents Authority (REAA) does?Base: Those who have had a real estate transaction in the last 12 months (n=200)

NEVER HEARD OF THEM

HAVE HEARD OF THEM BUT KNOW ALMOST NOTHING

KNOW A LITTLE

KNOW A REASONABLE AMOUNT

18%

25%

37%

21%

OVER EIGHT IN TEN (83%) OF THOSE WHO HAVE HAD A REAL ESTATE TRANSACTION IN THE LAST 12 MONTHS ARE AWARE OF THE REAAThis is significantly higher than the 71% of all New Zealanders who are aware of REAA. In addition, those who have had a transaction are significantly more likely to be familiar with what the REAA does.

AWARENESS AMONG ALL NEW ZEALANDERS:

11% know a reasonable amount28% know a little31% have heard of them but know almost nothing29% have never heard of them

SEVEN IN TEN (71%) NEW ZEALANDERS HAVE HEARD OF THE REAA

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INTERACTIONS WITH THE REAA

Base: Those who have had a real estate transaction in the last 12 months and who know that the REAA does (n=165)

Q24. During the last year, have you done any of the following?

Among those who are aware of the REAA, a third (33%) have had an interaction with them in the last year. The website is the most common form of interaction, followed by phone and then email. Ratings of all channels in terms of how useful each source was in finding the information or advice the consumer was looking for are high, particularly the ratings of those who sought guidance via email (though results are indicative only).

Base: Those who have visited website or received guidance from the REAA

Q25. Overall, how useful did you find each of the following in terms of getting the information and/or advice you were looking for?

16% VISITED THE WEBSITE(n=26**)

14% RECEIVED GUIDANCE FROM AN REAA STAFF MEMBER VIA PHONE(n=23**)

9% RECEIVED GUIDANCE FROM AN REAA STAFF MEMBER VIA EMAIL(n=15**)

8% 35% 31% 27%

22% 39% 39%

13% 47% 40%

DON'T KNOW 1 - NOT AT ALL USEFUL 2 3 - SOMEWHAT USEFUL 45 - VERY USEFUL

RATING THE USEFULNESS OF EACH INTERACTION

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DID THOSE WHO RECEIVED THE RESIDENTIAL PROPERTY AGENCY AGREEMENT GUIDE PRIOR TO AGREEING A CONTRACT FOR THE SALE OF THEIR PROPERTY FIND IT USEFUL?Two thirds (64%) of those who sold/put an offer on a property received a copy of the New Zealand Residential Property Agency Agreement Guide (this result is trending downwards since the high result achieved in 2013). Of those who said they received a copy, three quarters (74%) found it to be at least somewhat useful, a significant decrease from previous results.

64% RECEIVED A RESIDENTIAL PROPERTY AGENCY AGREEMENT GUIDE

Q2. Prior to agreeing a contract with the real estate agent for the sale of your property did you receive a copy of the New Zealand Residential Property Agency Agreement Guide from your real estate agent? % who said yes

2012 (n=91*)

2013 (n=103)

2014 (n=92*)

2015 (n=84*)

69%83%

70%64%

Q3. Did you find the guide useful?

4%9%

13%

37%

19%

19%

Don't know1 - Not at all useful23 - Somewhat useful45 - Very useful

74% FOUND THE GUIDE USEFUL (rated 3, 4 or 5)

2012(n=63*)

201(n=86*)

2014(n=64*)

2015(n=54*)

78% 81% 89% 74%

Significantly higher / lower than previous waveBase: Those who have bought a property or put an offer on a property in the last 12 months* Warning small base size

Base: Those who have recall receiving a copy of the New Zealand Residential Property Agency Agreement Guide

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DID THOSE WHO RECEIVED THE RESIDENTIAL PROPERTY SALE AND PURCHASE AGREEMENT GUIDE PRIOR TO MAKING OR ACCEPTING AN OFFER ON A PROPERTY FIND IT USEFUL? Just over two thirds (65%) recall receiving a copy of the New Zealand Residential Property Sale and Purchase Agreement Guide prior to making or accepting an offer on a property. Of those who recalled receiving it, the majority (90%) found it to be at least somewhat useful.

65% RECEIVED A RESIDENTIAL PROPERTY SALE AND PURCHASE AGREEMENT GUIDE


2012 (n=200)

2013 (n=200)

2014 (n=218)

2015 (n=200)

68%78%

61% 65%

Q4. Prior to making, or accepting an offer on a residential property did you receive a copy of the New Zealand Residential Property Sale and Purchase Agreement Guide from your real estate agent? % who said yes

2%2%5%

55%

19%

16%

Don't know1 - Not at all useful23 - Somewhat useful45 - Very useful

90% FOUND THE GUIDE USEFUL (rated 3, 4 or 5)

2012(n=135)

2013(n=156)

2014(n=134)

2015(n=129)

84% 85% 92% 90%

Q5. Did you find the guide useful?

Base: All respondents who have had a real estate transaction in the last 12 months

Base: Those who have recall receiving a copy of the New Zealand Residential Property Agency Agreement Guide

Significantly higher / lower than previous wave

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Q1. Have you in the last year bought, sold, received or put an offer in on a residential property using a real estate agent? ANDQ4. Prior to making, or accepting an offer on a residential property did you receive a copy of the New Zealand Residential Property Sale and Purchase Agreement Guide from your real estate agent?

WHO RECEIVED A COPY OF THE RESIDENTIAL PROPERTY SALE AND PURCHASE AGREEMENT GUIDE PRIOR TO MAKING OR ACCEPTING AN OFFER ON A PROPERTY?Those who bought or sold a property are the most likely to recall receiving a copy of the Sale and Purchase Agreement Guide. While the proportion who recalled receiving a copy of the Guide decreased significantly in 2014 across all groups, these have now improved slightly (except for recall among those who bought a property) though remain lower than levels seen in 2013.

Base: Those who have had a real estate transaction in the last 12 months

% who recall receiving a copy of the Guide prior to making or accepting an offer on a property

RECEIVED AN OFFER FOR A PROPERTY BUT DIDN'T END UP SELL-

ING IT

PUT AN OFFER IN ON A PROPERTY BUT

DIDN'T END UP BUY-ING IT

BOUGHT A PROPERTY

SOLD A PROPERTY

TOTAL

52%

65%

80%

73%

68%

66%

77%

83%

83%

78%

48%

55%

74%

70%

61%

52%

67%

72%

75%

65%

2015 (n=200) 2014 (n=218) 2013 (n=200) 2012 (n=200)


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28

HOW EMPOWERED DO PEOPLE FEEL?As seen in previous measures, the majority continue to feel at least somewhat empowered and able to participate effectively in their real estate transaction. The proportion indicating that they did not feel empowered was previously showing a downward trend which has rebounded slightly.

Q6. Overall, did you consider yourself empowered and able to participate effectively in the real estate transaction? Base: Those who have had a real estate transaction in the last 12 months

3%3%

7%

40%

29%

20%

5 - VERY EMPOWERED 4 3 - SOMEWHAT EMPOWERED 2 1 - NOT AT ALL EMPOWERED DON'T KNOW

88% FELT EMPOWERED AND ABLE TO PARTICIPATE EFFECTIVELY IN THEIR REAL ESTATE TRANSACTION (rated 3, 4 or 5)

2012(n=200)

2013(n=200)

2014(n=218)

2015(n=200)

% who feel empowered

(rated 3, 4 or 5)

86% 92% 90% 88%

% who don’t feel empowered(rated 1 or 2)

13% 8% 7% 10%Significant decrease from 2012 to 2014

Those living in the top half of the North Island (excluding Auckland) are more likely to feel very empowered (30% cf. 20% rating 5), as are those who know a reasonable amount about

what the REAA does (31%).

Those who received an offer on their property but didn’t end up selling it are more likely to not feel empowered at all (13% cf. 3%

rating 1).

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29

Q1. Have you in the last year bought, sold, received or put an offer in on a residential property using a real estate agent? ANDQ6. Overall, did you consider yourself empowered and able to participate effectively in the real estate transaction?

RECEIVED AN OFFER FOR A PROPERTY BUT DIDN'T END UP SELLING IT (n=31**)

PUT AN OFFER ON A PROPERTY BUT DIDN'T END UP BUYING IT (n=73*)

BOUGHT A PROPERTY (n=85*)

SOLD A PROPERTY (n=55*)

3%

1%

2%

2%

13%

1%

1%

2%

10%

4%

6%

11%

35%

49%

39%

31%

23%

27%

35%

27%

16%

16%

16%

27%

DON'T KNOW 1 - NOT AT ALL EMPOWERED 2 3 - SOMEWHAT EMPOWERED 4 5 - VERY EMPOWERED


DOES EMPOWERMENT VARY BY TRANSACTION?Those who received an offer for a property but didn’t end up selling are most likely to not feel empowered and able to participate effectively in the real estate transaction.


90%

81%

96%

87%

2012

91%

92%

93%

95%

2013

85%

93%

74%

91%

2015

95%

88%

79%

94%

2014


% who feel empowered (rated 3, 4 or 5)Base sizes vary

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WHAT DO PEOPLE THINK OF THEIR REAL ESTATE AGENT?Overall ratings of real estate agents continue to be positive with at least eight in ten rating them excellent, very good or good on all of the attributes. In the current measure, ‘being knowledgeable about the market’ is the highest rated attribute.

Base: Those who have had a real estate transaction in the last 12 months (n=200)Q7. Thinking about when you bought, sold, received or put an offer in on a residential property, how would you rate your real estate agent in terms of…

ACTING ETHICALLY, HONESTLY AND OPENLY

BEING KNOWLEDGEABLE ABOUT THE RELEVANT LEGAL REQUIREMENTS

BEING PROFESSIONAL

CLEARLY EXPLAINING THE PROCESS

PROVIDING ME WITH ALL THE INFORMATION I NEEDED

BEING KNOWLEDGEABLE ABOUT THE MARKET

2%

3%

1%

1%

2%

1%

5%

3%

4%

5%

4%

4%

10%

11%

11%

10%

11%

8%

27%

23%

22%

29%

26%

28%

28%

36%

28%

27%

30%

33%

29%

26%

35%

30%

29%

27%

DON'T KNOW POOR FAIR GOOD VERY GOOD EXCELLENT

% who rated excellent, or very good or good

85%

79%

83%

80%

79%

79%

2012 2013

85%

84%

85%

87%

86%

85%

2015

88%

85%

84%

84%

84%

85%

Significantly higher than previous wave

2014

83%

79%

81%

79%

80%

81%

n=200 n=200 n=200n=218

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DOES THE RATING OF REAL ESTATE AGENTS VARY BY TRANSACTION TYPE?Those who bought a property are more likely to rate their real estate agent positively in terms of being knowledgeable about the relevant legal requirements and acting ethically, honestly and openly.


Q7. Thinking about when you bought, sold, received or put an offer in on a residential property, how would you rate your real estate agent in terms of… Q1. Have you in the last year bought, sold, received or put an offer in on a residential property using a real estate agent?

TOTAL(n=200)

BOUGHT A PROPERTY (n=85*)

SOLD A PROPERTY (n=55*)

PUT AN OFFER ON A PROPERTY BUT DIDN'T

END UP BUYING IT (n=73*)

RECEIVED AN OFFER FOR A PROPERTY BUT

DIDN'T END UP SELLING IT (n=31**)

BEING KNOWLEDGEABLE ABOUT THE MARKET 88 91 93 86 81

PROVIDING ME WITH ALL THE INFORMATION I NEEDED 85 88 89 84 77

CLEARLY EXPLAINING THE PROCESS 85 89 89 81 74

BEING PROFESSIONAL 84 88 91 86 65

BEING KNOWLEDGEABLE ABOUT THE RELEVANT LEGAL REQUIREMENTS 84 93 89 81 68

ACTING ETHICALLY, HONESTLY AND OPENLY 84 91 87 84 74


% Rated Real Estate Agent Good, Very Good or Excellent

Significantly higher / lower than the total result

Significantly higher than previous wave

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32Q22. How often do you use the following social media channels?

USE OF SOCIAL MEDIA CHANNELSOver eight in ten people who have had a real estate transaction in the past year use YouTube (84%) or Facebook (84%) at least some of the time, while 37% use LinkedIn and 30% use Twitter. Looking specifically at the social media channel used weekly or more often, Facebook is used significantly more (75%).

Base: Those who have had a real estate transaction in the last 12 months (n=200)

75%

14%18%

57%

FACEBOOK TWITTER LINKEDIN

YOUTUBE

80%

18% 21%

69%


YOUTUBE

% ONCE A WEEK OR MORE OFTEN(Daily, Several times a week, Once a week)

% SEVERAL TIMES A MONTH OR MORE OFTEN(Daily, Several times a week, Once a week, Several times a month)

84%

30%37%

84%


YOUTUBE

% AT LEAST SOME OF THE TIME(Daily, Several times a week, Once a week, Several times a

month, Once a month, Less often than once a month)

APPENDIX: KEY INDICATORS

This section shows the results for some of the key questions covered previously in this report but excludes those that said don’t know. These results are reflected in the REAA Annual

Report.

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34

KEY INDICATORS EXCLUDING DON’T KNOW RESPONSES – CONFIDENCE

CONFIDENCE IN THE REAL ESTATE INDUSTRY% rated 3, 4 or 5 with 5 being a lot of confidence TARGET2012 2013 2014

65%68% 72% 70%

2015

65%

Fair (n=612)

Well monitored (n=599)

Well regulated (n=603)

Professional (n=616)

15%

14%

13%

8%

27%

22%

23%

17%

36%

39%

37%

39%

17%

17%

20%

24%

5%

7%

7%

11%

1 - No Confidence at all 2 3 - Some confidence 4 5 - A lot of confidence

63%

59%

74%

64%

% who feel confident (rated 3, 4 or 5)

This indicator combines confidence that the Real Estate Industry is Professional, Well Regulated, Well Monitored and Fair.

The result is expressed as a percentage of positive responses (% rated 3, 4 or 5 with 5 being a lot of confidence) and excludes those who said ‘don’t know’.

Among those who gave an opinion, two thirds (65%) have confidence in the Real Estate Industry. This is a drop from previous measures but is in line with the target result.

Q1. To what extent do you have confidence that the Real Estate Industry in NZ is … Base: All respondents, excluding those who said don’t know


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KEY INDICATORS EXCLUDING DON’T KNOW RESPONSES – KNOWLEDGE

KNOWLEDGE OF RIGHTS AND OBLIGATIONS % rated 3, 4 or 5 with 5 being a lot of knowledge TARGET2012 2013 2014

60%59% 57% 59%

2015

54%

2012 (n=652)

2013 (n=658)

2014 (n=665)

2015 (n=648)

16%

19%

20%

22%

24%

23%

23%

24%

43%

45%

43%

42%

11%

9%

11%

10%

5%

3%

4%

2%

1 - No knowledge at all 2 3 - Some knowledge 4 5 - A lot of knowledge

57%

59%

54%

59%

% who say they are knowledgeable

(rated 3, 4 or 5)The result is expressed as a percentage of positive responses (rated 3, 4 or 5 with 5 being a lot of knowledge) and excludes those who said ‘don’t know’.

Among those who gave an opinion, just over half (54%) feel that they have enough knowledge of their rights and obligations with respect to real estate transactions. This is a slight drop from 59% in 2014, though it is not a significant change.

Q4. Do you consider you have enough knowledge of your rights and obligations with respect to real estate transactions? Base: All respondents, excluding those who said don’t know

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KEY INDICATORS EXCLUDING DON’T KNOW RESPONSES – EMPOWERMENT

EMPOWERED AND ABLE TO PARTICIPATE IN A REAL ESTATE TRANSACTION % rated 3, 4 or 5 with 5 being very empowered TARGET2012 2013 2014

90%88%93% 93%

2015

90%

2012 (n=198)

2013 (n=199)

2014 (n=211)

2015 (n=195)

3%

4%

3%

3%

10%

5%

4%

7%

36%

36%

43%

41%

32%

28%

28%

29%

19%

28%

22%

20%

1 - Not at all empowered 2 3 - Somewhat empowered 4 5 - Very empowered

93%

88%

90%

93%

% who say they feel empowered

(rated 3, 4 or 5)The result is expressed as a percentage of positive responses (rated 3, 4 or 5 with 5 being very empowered) and excludes those who said ‘don’t know’.

Among those who gave an opinion, nine in ten (90%) of those who have had a real estate transaction in the last 12 months feel empowered and able to participate effectively in real estate transactions. This is in line with the target result.

Q6. Overall, did you consider yourself empowered and able to participate effectively in the real estate transaction? Base: All respondents

Documents

JUNE 2015 REAL ESTATE AGENTS AUTHORITY ANNUAL PERCEPTIONS RESEARCH