Underquoting overhaul in Victoria

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The property landscape in Victoria is set for an overhaul with new laws to restrict underquoting practices. New regulations imposed by the Victorian Government intend to protect buyers and create a more transparent property market.

The new regulations require agents to be forthcoming with realistic estimates by providing at least three comparable sales to interested parties. The comparable sales reports will need to be for properties recently sold within the same area and demonstrate a likeness to their current listing.

Along with the new guidelines come harsher penalties for agents who disregard the need for quoting accuracy. A financial penalty of $28,000, double the existing fine, will be imposed, as well as forfeiture of any commission obtained from the sale.

With underquoting the cause of distress for many consumers, Victorian buyer agent WiseRealestateAdvice.com.au Mark Ribarsky says that this is “a win for his clients and prospective purchasers everywhere”.

The changes will come as a relief to many people in the areas most affected by over quoting in recent years. Buyers in Box Hill, Vermont and Mount Waverly have faced underquoting resulting in sale prices of up to 33 percent above quoted estimates in recent years. 

The new mandates will provide buyers with a more realistic view of the houses they can afford to direct their time and energy into properties within their reach.

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