Reporting Real Estate agent (Vic)

Hi,

I am in the market to purchase a new property (not my first). However, my past purchase was via a private sale. I attended quite a few auctions yesterday (07-MAY-2016), to do my DD. A property in Yallambie caught my interest that was up for auction this day. The property was listed on realestate.com.au for $560K+ (40 Allima Avenue Yallambie Vic 3085 - House for Sale #122396466 - realestate.com.au). This attracted a larger turn out than normal for the area. The street was packed with people and families (not just nosy neighbours). The bidding started, but the property was not declared to be on the market until the price reached $710k, despite many people asking during the auction. Does this satisfy the criteria as a False and misleading claim according to the ACCC?

Real estate

• advertise the selling price based on a reasonable market appraisal or the price the seller has indicated they are likely to accept [Tick]
• not advertise or under quote a property at a price significantly less than the selling price to attract interest in the property [Tick]

Is it worth reporting the Real Estate agent? I understand that in isolation it is highly unlikely to result in any action, but would it help the ACCC if it saw a growing trend?

Has anyone else been witness to a similar experience?

 

The vendor is under no obligation to decide the reserve price until auction day.

However, the Victorian Government is current reviewing its real estate laws, with a view to closing loopholes that unfairly favour vendors and arguably encourage false advertising: Consumer property law review - Consumer Affairs Victoria

 

Thank you for the reply, and the additional information. I'll keep your legal services in mind if I'm in the area.

 

Seems like it is common to unquote.

I attended an auction nearly a month back and it was similar situation:
Sold price on realestate.com.au not the same as winning bid

 

I would report this to CAV if possible. I don't know the area well, but this type of marketing is absolute filth if similar properties in the area sold for ~$700k. My friend Josh at realas.com would love to know situations like this as well and is great at naming and shaming bad agents.

Remember, it's not under quoting if the quoted price is in line with previous sales and the auction result is completely one-off.

 

The house next door (literally) is also up for sale via auction in a few weekends by a different Real Estate agent. 38 Allima Avenue Yallambie Vic 3085 - House for Sale #122475266 - realestate.com.au Upon going to an Open for Inspection (at 38 Allima), these agents truthfully quoted the mid $700k range.

 

Yeah I would take that to CAV and realas.com

 

The avenue to report the agent, if you feel this matter warrants it, is Consumer Affairs Victoria.

 

A Buckingham Special - David Oaxley usually have a very low introduction price. In Banyale area so I see a number of these and am abreast of what is happening in the marketplace.

VIC Inaccurate Real Estate Agents Sold Price vs Agent Quote Sold Price vs realAs.com
1 Buckingham & Company – Diamond Valley 31.5% 14.8%
2 Hodges – Brighton 28.8% 12.1%
3 Hodges – Mentone 28.6% 9.7%
4 U First Real Estate 28.0% 12.0%
5 Barry Plant – Sunshine 27.2% 14.8%
6 Fletchers – Blackburn 27.0% 9.4%
7 Barry Plant – Ringwood 26.8% 9.9%
8 Jellis Craig – Brunswick 26.3% 7.5%
9 Barry Plant – Coburg 26.2% 6.7%
10 Branon – Hampton 26.1% 9.1%
Source: realAs.com September 2015

Source

20 Inaccurate Agents Named, New Underquoting Laws

End of the day it really comes down to DD, if you compared the median price for 4 bed in Yallambie is 740k according to RE.com. Why was this house going to sell for high 500s maybe early 600s... Remember the old saying if it is to good to be true then it is!

Both sides (REA & purchasers) are wrong, in my eyes it is stupid to think a property renovated was going to sell significantly less then the median price. For a 2 second effort of DD they would of had a different understanding of what was going to happen. It never amazes me how someone will spend such little time doing DD and get burnt on a x00,000 purchase but will spend hours researching which TV they should buy or where to go for their holiday.

REA probably shouldn't be advertising it like this as it puts people offside however the vendors allowed it (which they did) the REA could just be following directives from the vendor. Remember the REA works for the vendor not you (the purchaser).

However for the purchaser thinking it was going to be high 500s/early 600s it is either pure greed they were hoping for or just plain stupidity.

 

@TheRayTracer have you seen 16 Lowan Ave, Yallambie?

16 Lowan Avenue Yallambie Vic 3085 - House for Sale #123793402 - realestate.com.au - 500k+ Buyers

The median for the suburb is 650k (homehero) or 660k re.com for 3 bed houses

Domain home price guide has it at 695k for the mid but low is 600k



I feel this is going to be more than 20% below sale price. Yallambie isn't a suburb I am that interested in but I would say it will get 630-680k. I guess we will have to wait a couple of weeks!

 

@TheRayTracer My guess was off but no real surprise as I don't know the market as well but my price was much closer than the REA advertised price.

16 Lowan Avenue, Yallambie, Vic 3085 - Property Details

Actually sold for $715,000 just a bit above $500,000+ am I right?

 

Thanks for the follow up!!!

I wasn't at that auction, but I have no issues if market forces / bidding goes that high. Surprises and/or the-unexpected does happen.

What irks me is when the reserve price is nowhere near the advised price, and the vendor had no intentions at selling at that price point.

 

oh I agree but there would of been people thinking surely it wont sell for $600,000 considering it is advertised at 500k+ so this is going to be a good deal. However it isn't where you start that counts it is where you finish.

I didn't even inspect the property or have any idea what Yallambie is doing yet I was less than 5% off the sale price and this was with one minute of research.

 

Then how come real estate agents cant guess what properties will sell for?

 

Seems to be rife. One private treaty "330+" property in Carrum Downs sold at $410K. People queing up to look were commenting how the fully renovated property would easily be over $380k.

Recent sales of unrenovated properties neighbouring were around the $380k.

 

Apologies - I was overquoting! It actually sold at $401,500.
227 Ballarto Road, Carrum Downs, Vic 3201 - Property Details