'It's lies on top of lies': These real estate insiders want you to know the industry's secrets

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Real estate agents and property professionals reveal the ways their profession manipulates and misleads buyers and sellers in the pursuit of making a deal.

Listings are the lifeblood of real estate agents. With that comes competition.

This can mean "conditioning" — giving a homeowner an unrealistic expectation of what their place could sell for, then slowly adjusting their expectations to where the market really is as the campaign runs its course.In his nearly 40 years working in the industry, Mr Von der Borch said he had "seen laws bent breached and broken".

In 2015, John O'Brien and his wife bought a property in South Australia's Clare Valley. The agent, who also happened to own the property, advertised the property as 8 acres."We ended up with 5 acres, so we're missing 3 acres," Mr O'Brien said.South Australian regulator, Consumer and Business Services , investigated and found the agent had engaged in misleading conduct.

Canberra real estate agent Christine Shaw said many in the industry did the right thing and followed the spirit of the law. In Queensland, properties going to auction cannot provide a price guide during the advertising campaign. There is no such prohibition in many other states and territories. NSW has imposed 2,781 on-the-spot fines against agents since 2018. The rules around when penalties can be imposed vary significantly across different states.

 

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