Anyone buying or selling real estate in Melbourne now or in the near future should be aware of new laws that affect the way the process is governed. The most recent changes of note concern underquoting – a practice that often wastes the time of buyers and vendors, and gives real estate agents a bad name in the process.
Underquoting occurs when an agent advertises a property at a price that they know to be lower than its true value, or the amount that the vendor would accept. They do this to attract more buyers and unfortunately, it often means people are disappointed when they attend an auction or make an offer only to find they’ve fallen far short.
What do these new laws look like and will they make a difference?
The gist of the new underquoting laws
These new laws have attempted to tackle a problem that is more complex than it may appear by requiring that agents provide a statement of information to all prospective buyers. The following details must be included:
- Three comparable sales, taking into account the age, condition, size and location of the property,
- The suburb’s median house or unit price,
- The indicative selling price – must be expressed as a single amount or a price range of 10 per cent.
These points only skim the surface of the legislation and there have been countless other changes, all of which aim to increase the transparency and honesty of price quoting. But will this really work?
Will this really change things?
Underquoting occurs when an agent advertises a property at a price that they know to be lower than it’s true value.
These new laws should certainly help to stamp out commonly used and irresponsible terminology in advertising, such as ‘offers over’ or ‘price-plus’ and should herald a move towards more transparent quoting practice.
When selecting an agent to sell your Melbourne home it’s more important than ever to select someone with vast experience and sound knowledge of the local market.
Working with the right agent will help you navigate these new laws and sell your Melbourne home in the most effective and transparent way possible.