Underquoting in Australian real estate industry is leaving buyers feeling betrayed

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The only thing that will stop practice of underquoting on price guides is to ‘name and shame’ those caught doing it, says one buyers agent

The first underquoting law was issued in New South Wales in 2016, requiring the listing prices of residential property sales to align with market values or sellers’ valuations and cracking down on vague formats of listing prices like “600,000 and above”.found the introduction of underquoting laws worked to align listing prices with market values, leading to a relative drop in auction sales prices of between 2% and 6% by cracking down on overbidding.

“Nobody was coming to my open house for inspections because I was giving them the real prices, and it’s still rife in 2022.” “Last week I had an agent who said openly … ‘we tell the owners if we quote within the 10% range we will have zero people through the open home’. “They need to take entire fee off [the] agent … and agents need to have a strike-out policy,” he says. They should also openly disclose the agency agreement price. But it doesn’t seem to be on the cards at the moment, and it’s been going on for decades.”

 

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Oh please...anyone expecting honest real estate salespeople ...Sorry but I'm bewildered

Can't see how this isn't fixed by requiring the reserve price to be published If there are multiple bidders & they pay more that's the market If people aren't prepared to bid reserve $ that's their choice but in the end if they want the place & can meet the price they will bid

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