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Six VIC Agents Investigated; Melbourne’s Worst Underquoting Hotspots

Six VIC Agents Investigated; Melbourne’s Worst Underquoting Hotspots
January 13, 2016 Josh Rowe

Melbourne’s Worst Underquoting Hotspots

Consumer Affairs Victoria are probing six Victorian real ­estate agencies for suspected underquoting following a statewide blitz.

Authorities have raided several agency offices and seized hundreds of documents in an attempt to flush out evidence and punish rogue agents

Staff at other agencies have been issued with statutory ­notices from Consumer Affairs Victoria demanding the production of paperwork, reported the Herald Sun.

“We know this (underquoting) is a problem and it can be heartbreaking for potential buyers who are lured in by these tactics,” – Ms Jane Garrett, Victorian Consumer Affairs Minister.

There is no hiding the fact that the misleading and deceptive marketing tactic of underquoting by real estate agents wastes the time, money and breaks the hearts of home buyers.

The current Victorian underquoting rules put the burden of proof on the home buyer which has resulted in many underquoting complaints failing to result in action against real estate agents.

Comparatively, New South Wales underquoting rules which commenced on 1 January 2016 puts the onus on real estate agents to keep records on price quotes, therefore the burden of proof is on them when complaints arise.

Here is the latest realAs leaderboard of Melbourne’s underquoting hotspots.

What are your experiences with these suburbs?

Underquoting Hotspots

VIC Inaccurate Real Estate Agents Sold Price vs Agent Quote Sold Price vs realAs.com
1 Heathmont 26.2% 6.8%
2 Moorabbin 26.0% 8.9%
3 Ringwood 24.3% 6.1%
4 Alphington 24.2% 8.7%
5 Highett 23.9% 5.1%
6 Heidelberg West 23.8% 7.2%
7 Mentone 23.7% 7.7%
8 Bentleigh East 23.4% 8.1%
9 Ascot Vale 23.4% 8.1%
10 Chadstone 23.3% 5.9%
Source: realAs.com December 2015

 

VIC Accurate Real Estate Agents Sold Price vs Agent Quote Sold Price vs realAs.com
1 Hadfield 7.5% 7.6%
2 Maribyrnong 8.7% 9.3%
3 Hillside 9.4% 3.4%
4 Airport West 10.8% 8.4%
5 Glenroy 11.1% 6.1%
6 Ringwood North 11.2% 5.8%
7 Beaumaris 11.4% 7.2%
8 Box Hill 11.4% 4.7%
9 Keilor Park 11.6% 5.3%
10 Seddon 12.0% 4.8%
Source: realAs.com December 2015

 

 

More reading

Melbourne’s eastern suburbs are hotbeds of underquoting: realAs.com

Real estate underquoting blitz: six Victorian agencies under investigation

With respect to the survey:

  • it is for auctions in December 2015
  • from Victoria
  • only suburbs with 4 or more publicly available quotes and auction results were included
  • the “Sold Price vs Agent Quote” is the average percentage difference between the sold price and the public agency quote
  • the “Sold Price vs realAs.com” is the average percentage difference between the sold price and the realAs.com prediction

 

 

  • Get free property price predictions at REALas.com

Summary
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Melbourne's Worst Underquoting Hotspots
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