Victoria Crackdown on Property Underquoting 3

Monday, August 22nd, 2016
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Victorian real estate agents will receive fines of more than $31,000 and face losing their commission in a new crackdown in underquoting.

New laws introduced in parliament on Thursday will force agents to provide prospective buyers with a comprehensive analysis including three recent comparable sales, an indicative selling price, and the median price for the suburb when listing properties.

Words or symbols in advertising such as “offers above”, “from” or “+” will also be banned.

Minister for Consumer Affairs, Gaming and Liquor Regulation Marlene Kairouz said since buying a home is one of the biggest decisions Victorians will make, buyers should be given a “level playing field”.

“Victorian homebuyers deserve a fair go,” she said in a statement on Thursday.

“This is about making sure they don’t waste time and money on properties they can’t afford.”

“These laws send a strong message to agents: think twice before you underquote properties to our homebuyers.”

Advertising price ranges of more than a 10 per cent increment, like $500,000-570,000 will also be banned.

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  1. Charles Litho

    I went to an auction once for prime property a few decades ago that the advertised price was exceeded by 50%, and, the price was still cheap. Two of us were interested and only because the Agent talked to the other person after it was passed in, I lost; even though after my nerves settled I knew it was worth 100% above the advertised price.
    I let my ego my rob me of a fortune when I did not accept a friend to act on my behalf.
    Buying property has to be done by a person who knows the property market, you do not go to court without a Solicitor even for small matters. We need the system used by large investors to filter down to every body in an affordable way.
    In a market where on the day people will pay anything for a good property I think the legislation is faulty.

  2. macca

    Fair go?
    You must be joking, With rental properties destroying the market and screwing over the next generation.
    Houses in this country are 50% over valued already as people expect to just invest and make money off nothing from expected house value increases.

  3. Andrew Heaton

    The general thrust of this is welcome. Having buyers spend way too much money on things like title searches and building inspections just to find that their expectations were never realistic is unacceptable and must be stopped.

    That said, this does nothing to solve the hidden and even bigger problem of the agents over-quoting to sellers, whom they are supposed to be serving as customers. Basically, what happens on many occasions is that sellers go out and talk to a number of agents who in turn make sky-high promises (lies) about what the property can sell for in order to persuade sellers to list with them. The seller then effectively gets not the best agent but the biggest liar. That agent then managers the seller's expectations down to any price that the home can be flogged off at. any price. This is a big problem as the seller ends up getting the worst deal. The same agent that is unscrupulous toward buyers will be unscrupulous toward sellers as well.