REALas Australia’s most accurate property price predictions
REALas Australia’s most accurate property price predictions

Top 10 suburbs; Underquoting rules unenforceable

Top 10 suburbs; Underquoting rules unenforceable
October 8, 2014 Josh Rowe

Property buyers’ frustration would have been palpable at 103 Tinning St Brunswick VIC last weekend.

Pre-auction the real estate agent advertised the property as $700k – $770k.  However, on auction day, despite the final bid of $805k being above the agent’s quoting range it did not reach the vendor’s reserve price of $835k.

This is a clear case of underquoting which the real estate industry and government are powerless to stop.

realAs.com predicted this property would sell for $828k; 1% off the reserve price.

It is buyers who decide what a home is worth, not sellers nor agents.

Aided by the increased data available through Internet sites like realAs.com, buyers can decide which open for inspections, private sales and auctions they attend.

Had all the property buyers at 103 Tinning St Brunswick been aware of the realAs prediction of $828k (which was over their collective limits) would they have bothered turning up to the auction at all ?

TOP 10 suburb searches on realAs last month:

  1. Richmond
  2. Northcote
  3. Hallett Cove
  4. Coburg
  5. Highett
  6. Springvale
  7. Surrey Hills
  8. South Yarra
  9. Toorak
  10. Ryde

Victorian and New South Wales suburbs feature heavily in this list.  However, we’re seeing strong growth for properties right across Australia.

TOP 5 cities where realAs users reside

  1. Melbourne
  2. Sydney
  3. Brisbane
  4. Perth
  5. Adelaide

Can Sydney, Brisbane, Perth or Adelaide knock Melbourne off top spot as the most informed property buyers ?

Nailed it:

Underquoting – When an agent indicates a price that a property will sell for, but is well short of the market and the owner’s expectations.

“To really understand the myths of real estate, you have to be able to take control of the process, whether you are buying or selling, and even more importantly, to control your emotions. If you don’t have your emotions under control, you are likely to end up as the next dinner pary horror story!” – David Morrell, realAs.com Founder

 

Tricks real estate agents use to sell – The New Daily.
Buying a property can be intimidating. Here’s how to see through the real estate agents tricks and talk.

The 9 most overused terms in property advertisements – Property Observer.
Real estate advertisements are a source of amusement, frustration and awe for many. They can be exciting, beautiful, or downright shoddy. Here are 9 terms that crop up regularly in property copy.

Please reply to this post with your feedback about the web site and app.  Property buyers like you are helping us prioritise and develop new features.

Happy house hunting.

Josh Rowe, CEO realAs.com

PS Share this post with your friend or colleague who is house hunting !

realAs round up – Weekly news from the property industry together with unique realAs data insights.  By buyers, for buyers.

 

 

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    The views and opinions expressed in this communication are those of the author and may not necessarily state or reflect those of REALas.


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