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

Underquoting is Frustrating for Home Buyers

Underquoting is Frustrating for Home Buyers
November 11, 2016 Josh Rowe
underquoting frustrating home buyers

Underquoting is Frustrating for Home Buyers

Many home buyers miss out on securing a home at the first auctions which they attend. Learning to understand the nuances of how different real estate agents quote property prices is a fine art. Underquoting is frustrating for buyers and causes buyers to waste time, money and heartache.

What is underquoting?

Underquoting is when a real estate agent misleads a prospective home buyer about the likely selling price of a property for sale.

Examples of underquoting are when a property is advertised or quoted to a prospective buyer at a price that is less than:

  1. the seller’s asking price or auction reserve price
  2. the agent’s estimate of the selling price
  3. a genuine offer or expression of interest

Many real estate agents are capable of providing accurate property estimates but other agents are not.

Here are the worst 10 suburbs for real estate agents which inaccurately quote home prices.

Bottom 10 Suburbs for Inaccurate Price Quotes

NSW Inaccurate real estate agent quotes Sold Price vs Agent Quote Sold Price vs realAs.com
1 Eastwood 24.2% 10.3%
2 Bexley 23.8% 8.2%
3 Hunters Hill 20.9% 12.1%
4 Ashfield 20.7% 11.4%
5 Kirribilli 20.3% 8.4%
6 Drummoyne 19.8% 10.7%
7 Collaroy 19.2% 9.1%
8 Epping 17.2% 6.5%
9 North Ryde 17.2% 3.3%
10 Ryde 17.0% 6.1%
Source:REALas.com October 2016

 

VIC Inaccurate real estate agent quotes Sold Price vs Agent Quote Sold Price vs realAs.com
1 Glen Huntly 30.1% 11.4%
2 Keysborough 29.3% 9.3%
3 Hampton 28.7% 9.9%
4 Thornbury 28.7% 11.3%
5 Caulfield North 28.3% 10.2%
6 Preston 28.1% 8.4%
7 Doncaster 27.0% 7.4%
8 Nunawading 26.9% 12.9%
9 Carlton North 26.4% 8.0%
10 Macleod 26.4% 15.5%
Source:REALas.com October 2016

 

With respect to the survey:

  • it is for auctions in October 2016
  • from Victoria and New South Wales
  • 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

 

  • property values

    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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Underquoting is Frustrating for Home Buyers - Bottom 10
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