Intentional underquoting is not only unethical, it is illegal. Unfortunately, some misleading behavior from a few members of the real estate community has resulted in new Victorian laws aimed at curbing underquoting. All agents are expected to be fully compliant.
The new property pricing laws are going to largely benefit buyers. Mark Giuliano, Sales Director at Melcorp Real Estate is excited about these changes as ‘they will bring greater transparency to the sale process, ensuring real estate agents quote with integrity, helping buyers purchase within their price range’.
What is underquoting?
Underquoting is providing a misleading expected price range. This is when an agent advertises a selling price lower than the price agreed with the vendor. Underquoting is banned in the Victorian Real Estate industry, with severe consequences for agents not adhering to the legislation.
What are the new laws?
All agents have to provide a single figure or a 10 per cent price range on every property for sale, regardless of whether the property is for private sale or auction. A ‘Statement of Information’ fact sheet will be displayed at every open for inspection and included with every online property advertised.
The ‘Statement of Information’ will contain the following:
Agents must act promptly in updating the price, if the indicative selling price or range changes due to circumstances, such as the vendor rejecting a higher offer price than the indicative selling price.
You can read more about underquoting, your rights and the new legislation on the Consumer Affairs Victoria website www.consumer.vic.gov.au. Otherwise, please contact Mark Giuliano, Sales Director, for further information.
