Underquoting and the new Victorian legislation are a hot topic right now but what does it all mean.
On May 1st Consumer Affairs Victoria are introducing new underquoting laws to provide property consumers with a more transparent language and realistic property estimates. The legislative change comes off the back of some high-profile underquoting cases to ensure property advertising is not misleading nor deceptive.
Under this new legislation, real estate agents will be required to provide a Statement of Information (SOI) including 3 comparable property sales and their sold prices, to prospective buyers across all residential listings.
The 3 comparable property sales will need to be within 2km of the property address and have sold in the past 6 months for metro Melbourne. Or within 5km of the property address and sold within the last 18 months for regional Victoria.
realestateVIEW.com.au’s CEO, Enzo Raimondo has stated “We welcome the legislative change as it will improve transparency.”
The industry owned portal, has developed a new 3Comps tool to help both real estate agents and prospective buyers, obtain a realistic value of a home based on three comparable sales in the area.
Raimondo went on to say “Whilst the SOI ensures compliance, 3Comps not only compliments and exceeds this compliance, it does it in a way that is responsive, intuitive and in a language, that will improve the user experience for those searching for property.”
“This tool, which will be released at the end of the month, allows agents to display three comparable properties dynamically on their listing, while creating a personalised, branded SOI for agents, improving the online user-experience for property seekers, further enhancing the industry’s credibility,” Mr Raimondo concluded.
Agents from across Victoria have been overwhelmingly positive about the changes, including Philip Webb from Philip Webb agency who said, “I think anything that adds transparency, anything that gives the real estate industry and the profession more integrity, is a good thing.
“We have to keep complying with what is needed and I see this as just an extension of that. I think it will turn out to be a very positive thing”
For more information on the 3Comps tool, the legislation and how it affects both real estate agents and consumers, please visit realestateVIEW.com.au/3comps