Powered by MOMENTUM MEDIA
realestatebusiness logo

Breaking news and updates daily. Subscribe to our Newsletter!

Home of the REB Top 100 Agents
Breaking news and updates daily. Subscribe to our newsletter

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Agents face $29,000 fine for underquoting

By Nick Bendel
25 November 2014 | 1 minute read

Victoria’s government has promised new laws to deal with a “huge spike” in underquoting.

Planning Minister Matthew Guy said the coalition, if re-elected on November 29, would force agents to disclose the price range of all properties, Ninemsn reports.

Consumer Affairs Victoria would be able to monitor activity before and after auctions, with agents liable for fines of up to $29,000 if caught underquoting.

Advertisement
Advertisement

"There has been a huge spike in the number of complaints for real estate agents who have been underquoting the cost, or the expected cost, of a home to what it actually goes for at an auction,” Mr Guy told reporters.

"What we do not want to keep seeing is people constantly being taken advantage of, rolling up to auctions where the reserve price is $100,000 [or] $200,000 more than what is listed as the price range for the property."

However, Andrew McCann, from Jellis Craig Bennison MacKinnon Armadale, said underquoting is not a significant problem in Melbourne and that appropriate laws are already in place.

“I think the challenge around underquoting is that in a strong market, it’s very hard to control guidance to potential buyers around price,” he told Real Estate Business.

“An agent can do their best to predict where a reserve price might fall, but they can’t predict where a sale price might fall if there are four or five bidders and it’s a very competitive auction.”

Mark Di Giulio from Barry Plant Doncaster East said he would support new rules to combat underquoting, although he feels the practice is already under control. He adds that it can be hard to put an accurate value on property in a strong market, and agents can become an easy target for disgruntled buyers.

“I can understand why some agents are advertising no price, because they don’t want to be held accountable or liable,” he told Real Estate Business.

“When you’re in an improving marketplace, the market will determine the true value – the agent just influences it.”

Agents face $29,000 fine for underquoting
20748 transform
lawyersweekly logo

Tags:

ABOUT THE AUTHOR


Listen to other installment of the Real Estate Business Podcast
Do you have an industry update?

top suburbs

12 month growth
Travancore
49.78%
Timboon
49.57%
Dolphin Point
49.51%
Nyah West
49.42%
Preston Beach
49.29%
Newington
48.97%
Killcare Heights
48.89%
Wundowie
48.77%
Homebush
48.44%
Glenside
48.28%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to Newsletter

Ensure you never miss an issue of the Real Estate Business Bulletin.
Enter your email to receive the latest real estate advice and tools to help you sell.