It has been beyond 12 months since Victoria introduced underquoting laws. Since then, we’ve seen a decline in the amount of sales that could be considered in the underquoting since the laws were introduced in May last year.
Whilst there is no defined criteria for it, we think that a property that sells for 20% higher than what the agent has stated, is certainly in the ball park! To put it into context, that’s seeing a property listed for $800k and it selling for $1 million.
The good news is that since the underquoting laws have passed, there has been a significant drop in the number of occurrences each quarter. The bad news is that underquoting still happens – in Victoria more than 1 in 50 auctions going for way above the suggested price. The most famous example lead to a massive fine of $880,000 earlier this year.
Where should i look out for it?
We’ve compiled an updated list of suburbs which tend to overachieve their listed price quite consistently. If you’re looking to buy in the listed suburbs, make sure you are willing to add a bit more to the price that is given to you by the agent.
Your state’s most overachieving suburbs:
It is not always underquoting
A property that sells way above the suggested price does not always mean it has been underquoted. A sale amount higher than the estimated selling price is not proof of an agent underquoting. It could be due to strong competition between buyers that an agent could not have predicted – Fair Trading NSW
Want to learn more? Check out our article here on what it is.