Real estate agents risk losing commissions in under-quoting crackdown

Interesting - potentially looks like "offers over" may be a thing of the past.

http://www.smh.com.au/nsw/real-esta...n-underquoting-crackdown-20150903-gjewp0.html

 

Bait advertising has been an issue for a long time.

 

I still think it's hard to prove under-quoting especially in a hot market. Interested to know how the government ensure the new rules would be "clear and effective". Just prohibiting "offers over" probably won't work.

 

Every boom cycle, agents start over quoting, the authorities decide to crack down, and an example or two gets made.

Doesn't really change anything though.

 

Probably a bit late for this cycle, but good to see they're still doing more.
Would be good if QLD got on to this sooner rather than later as well.

 

Why is that ha become illegal issue ?

if the market is boom and the vendor only accept the price like it is quoted "offers over $....", then yes that's normal.

At least here in Sydney in the past one year.

 

And the reason is the influx of newbie agents during a boom that never stay around when it ends.

 

It's not the newbies who do the underquoting but the old hands - those that know they have to be in front of every buyer in a given price range and more.

 

I think in general buyers have the mindset when they see offers over $$, that it will be atleast $50,000 over. Whatever it is, we all know the sale price will not be that figure

 

Yeah whenever I see something like that I always wonder, now how much UNDER will they really accept. Of course in hot markets that's not the case, but in all other markets that's my first thought..

 

They really shouldn't be putting a number that the vendor won't accept.

 

Agree, but it is what it is. Not saying its right

 

You mean the buyers?

 

Advertising offers over 460k and then advising buyers that the seller won't accept anything below 530k as recently happened to me is the issue. It's just wasting people's time.

 

Yeah I agree. I never believe anything an agent tells me. I know not all agents are like that but I still don't believe much an agent says. He's doing the best thing for his client I get that.

 

Had a good chat with an agent about a property. Offers over 460k. And it actually was that. If there wasn't any better offers the seller would have accepted that. Ended up going for 478. That's fine.

Misleading buyers and wasting time to get your contact book some more numbers is the problem and it's rightfully being cracked down on.

 

I get what your saying mate. I do ask myself though.. if I was selling a place..would I want the agent to use some 'tricks' to get more people in.. perhaps creating a more lively environment at an auction,..the more people the more perceived value or sought after a place can appear...drawing buyers in who think it will be 1 price but then as it goes higher they may emotionally get involved and bid etc... if I was selling a place would I want the agent to do absolutely everything in his power to get me the highest price??

 

Auctions are fine. All done and dusted. It's the month long sales process they are talking about I think.

There's a lot of frustration in the market and a lot moving back to traditional auctions as it is more honest and upfront. And you can actually see if there is another bid...

 

I do understand from a buyers perspective. I just think then if I was a seller...what would be the best for me then..

 

I would like if they made it so

1 address must be shown
2 price must be what is asking price (no silent auctions bidding price up)
3 auction price set by independent valuer for guide

I do not agree it is hard to prove, in last 2 weeks in one area, one agent holds auctions and uses price guide of 280k all the while similar units sell for 340-360k, they sell this one at 354 from memory, the next one they have for auction in next street, but better unit, price guide 280k..... yeah, right. Deceptive, time wasting practice, they know full well it is not a 280k price guide, no way owner would allow sale at 280k !!! it is a lie, out and out deception (did I make that point yet ??... lol)