NSW OFT a toothless tiger for underquoting agents

Discussion in 'The Buying & Selling Process' started by Scott No Mates, 29th Jan, 2017.

Join Australia's most dynamic and respected property investment community
Tags:
  1. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    27,248
    Location:
    Sydney or NSW or Australia
    When it comes to underquoting, there's no better place than NSW to get away with it.

    Linky

    Here guys have a $2,200 infringement rather than a prosecution, loss of commission and hefty fine.

    That'll keep the b@stards honest.
     
    Scott No Mates, 29th Jan, 2017
    #1
  2. geoffw

    geoffw Moderator Staff Member

    Joined:
    15th Jun, 2015
    Posts:
    11,677
    Location:
    Newcastle
    The article states that underwriting is hard to prove. Based on the final sale price, it probably is.

    But is it possible to determine at what price a property is "on the market"?

    Back in the day, it was not uncommon for a property to come on the market at a price well above the quoted price. I haven't been to a auction for some years now though.
     
    geoffw, 29th Jan, 2017
    #2
  3. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    27,248
    Location:
    Sydney or NSW or Australia

    EBM might take issue with that ;)

    As for underquoting, it doesn't take a valuer to work out what has sold, at which price and whether it's worth more than the range spruiked n the marketing.
     
    Scott No Mates, 29th Jan, 2017
    #3
  4. geoffw

    geoffw Moderator Staff Member

    Joined:
    15th Jun, 2015
    Posts:
    11,677
    Location:
    Newcastle
    I blame autocorrect.

    I'm not sure why EBM would take issue with that though.
     
    geoffw, 29th Jan, 2017
    #4
  5. Propertunity

    Propertunity Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    3,476
    Location:
    NSW
    Under quoting has got nothing to do with the advertised price guide Vs eventual sales price. Under quoting is where the listing agent advertises or verbally states a price that is below his/her opinion of market worth as recorded in the SAA (selling agency agreement) they have with the vendor.
     
    Propertunity, 29th Jan, 2017
    #5
    Scott No Mates likes this.
  6. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    27,248
    Location:
    Sydney or NSW or Australia
    @Propertunity - which is very hard to prove as the purchaser is not privy to the vendor's agreement with the agent.
     
    Scott No Mates, 29th Jan, 2017
    #6
  7. Propertunity

    Propertunity Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    3,476
    Location:
    NSW
    Correct. The only way it is proven is following an OFT raid on the offending agency and client files being inspected.
     
    Propertunity, 29th Jan, 2017
    #7