Price Guide- Victoria

Discussion in 'The Buying & Selling Process' started by username, 25th Nov, 2016.

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  1. username

    username Member

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    Wanted to see if there are any guidelines on the below?

    House was listed with an auction guide of $470-520k. After some back and forth (as we are quite keen on the house), we increased our offer to $530k (two weeks to go before the auction)- the vendor rejected it.

    Is the agent now required to change the listing price to $530k+ ? Or because this is before auction they can quote whatever they like? If I read between the lines, it seems the vendors reserve is probably at least $530k (if not more)- so isn't it misleading to be quoting such a low range??
     
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  2. zed_kid

    zed_kid Well-Known Member

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    Applying the Melbourne rule of ‘take the top of quoted range + 10%’ the reserve is $572k


    I don’t even know why they bother with listing the bottom of range.
     
  3. Perthguy

    Perthguy Well-Known Member

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    Report them. It is misleading and supposedly illegal.
     
  4. Agent30yrs.

    Agent30yrs. Well-Known Member

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    First to admit I dont understand the Vic laws but is it possible the reserve is , say 500k but they want to take it to auction ?
     
  5. Perthguy

    Perthguy Well-Known Member

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    I sold a property in Melbourne late last year. I would describe the process as scammy at best, completely corrupt at worst.

    The way agents get around the laws is leave the reserve blank on the authority to sell form until a couple of minutes before the auction. We actually signed our after the auction was scheduled to start.

    Where our agent came unstuck was that we got a written offer in the week before the auction that was close to our price and well over the listed range. I don't remember the exact number but say the property was listed for $550k to $600k and we got an offer for $670k, the agent would have to adjust the price or be in breach of the law (as far as I know). He didn't and I don't consider that legal or ethical. I think we had about 10 arguments over the phone with him about price. Not good.

    In the case of @username, as far as I know, the property is not to be advertised at less than the price of a genuine offer:-

    Underquoting
    Underquoting is when an agent misleads a prospective buyer about the likely selling price of a property for sale.

    Examples of underquoting are when a property is advertised or quoted to a prospective buyer at a price that is less than:

    • the seller's asking price or auction reserve price
    • the agent's estimate of the selling price
    • a genuine offer or expression of interest.

    Understanding property prices - Consumer Affairs Victoria

    CAV will only investigate an agent if they receive formal complaints. Without complaints the underquoting will never stop.

    Compliance and enforcement policy - Consumer Affairs Victoria
     
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  6. Simon Moore

    Simon Moore Residential & Commercial Mortgage Broker Business Member

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  7. Agent30yrs.

    Agent30yrs. Well-Known Member

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    Thanks @Perthguy . Yeah , dob him in .
     
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  8. Big Will

    Big Will Well-Known Member

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    Depends did they decline it due to the conditions or price?

    If they declined it on price then they would be under quoting but if they declined it as you wanted a 120 day or 3 year settlement (making it sound stupid) then they are not under quoting.

    If it was unconditional and 530k with their settlement terms then yes they would need to change their price as 530k isn't going to buy it.

    Price guides are stupid to say the least, but I prefer them over 'Contact Agent' (yes I know how to check the source code).
     
    Perthguy likes this.