Proposed changes designed to stamp out the underquoting of estimated auction results don’t go far enough, former Real Estate Institute of Victoria ethics committee chairman John Keating claims.
As reported by Star Weekly, the Woodend-based Keatings Real Estate director believes major reform is needed to stop rogue agents misleading potential buyers by underquoting house price estimates by tens of thousands of dollars.
The state government last week flagged new laws that would double the fine for underquoting to $30,000. Agents would also risk losing their sales commissions if caught out.
Consumer Affairs Minister Jane Garrett said agents would be banned from advertising properties with ‘‘plus’’ or ‘‘offers over’’, and the advertised price must be within a 10 per cent range.
Agents would also have to provide fact sheets, including three recent comparable sales, the estimated sale price and the suburb’s median property price.
But Mr Keating said the system would still be open to abuse.
‘‘The fundamental problem hasn’t been addressed,’’ he said. ‘‘As long as the vendor has the right to change their mind any time up until they sign a contract, agents will still be able to conceal the prices vendors are really looking for.
‘‘The requirement for three comparable sales is going to be very difficult to actively police because agents will give sales that might purport to be comparable, but are not.’’ Mr Keating wants agents to be required to publish the vendor’s reserve price in all advertising.
