According to Minister for Consumer Affairs Jane Garrett, underquoting is when an agent misleads a prospective buyer about the likely selling price of a property.
“The Andrews Labor Government is toughening up laws to help stamp out the practice of underquoting in the real estate market. Buying a home is one of the biggest decisions people make and this is about making sure hardworking Victorians don’t waste time and money on properties they simply can’t afford”, Garrett says.
These changes are a significant step forward and bring transparency and consistency to property transactions, the Real Estate Institute of Victoria said today.
REIV CEO Enzo Raimondo said that the changes would greatly benefit those looking to buy real estate in Victoria.
The changes include:
- Delivery of a new fact sheet for buyers, which will include recent comparable sales for a property, the median price for the suburb and, most importantly, the agent’s estimated sale price for the property;
- The revision of the property’s estimated selling price – if the agent receives an offer, in writing, that is higher than the current advertised or estimated price;
- No “offers over” or “price-plus” advertising to buyers – with the selling price only provided as either a single price, or a price range (which must fall within 10 per cent of the upper and lower end).
Press conference on changes to price quoting underway with REIV CEO Enzo Raimondo and Minister for Consumer Affairs Jane Garrett
The changes will apply to residential – rather than rural or commercial – private sales and auctions.
Mr Raimondo said that the reforms would be effective in a variety of market conditions, and for all stakeholders in property transactions.
“The changes will provide consistency in pricing of property and the information provided to both vendors and buyers,” Mr Raimondo said.
Mr Raimondo said that the reforms were the result of a collaborative approach by the REIV and the Office of the Minister for Consumer Affairs.
The proposed legislation will be introduced in Parliament later this year.