Real estate agent complaints at an all-time low

Every year, the Real Estate Authority publishes complaints data for the industry. The statistics from the July 2021 to June 2022 reporting year were released earlier this week and show that only 271 formal complaints were made to the REA last year. This is down from a high of 564 in 2015/16:

In some ways, this is surprising. Whilst we have noticed real estate agents really tightening up their compliance in recent years, a number of factors made us think complaints figures would have increased this year:

1. 2021/22 saw a booming housing market cool off significantly, and house prices fall in some areas. In such situations in the past, complaints have increased as purchasers lost money through buying at the peak.
2. The strong market brought an influx of new agents into the industry. The REA reported that there are now 16,866 licensees, more than there have ever been before. Unfortunately, new salespeople are more likely to have complaints made against them due to inexperience.
3. Similarly, August 2021 saw level 4 lockdowns in Auckland, and level 3 restrictions across the rest of the country. The real estate industry adapted with online viewings, private open homes etc, but such uncertainty can lead to complaints as licensees adapt.

But, despite these factors, complaints have fallen to a new low. The industry is to be congratulated on this remarkable achievement. We are glad to be wrong in our predictions! It shows that all the investment which agencies are undertaking into compliance, strong agency agreements, and high ethical expectations of licensees is working. We look forward to seeing the complaints figures fall further.

If you would like to discuss how you can protect your practice / agency against complaints, don’t hesitate to contact us. We don’t just defend complaints. We offer training sessions and presentations (normally free), compliance reviews and document drafting to help protect you.