Real Estate Underquoting: Are You Up to Date with the New Laws?

Posted:

In: Residential Sales,

Back to Insights

open homes on weekend, suburb aerial shot

As I’m sure many of you are aware, there are many changes taking place regarding real estate underquoting. From the 1st of January 2016, the new legislation has been effective in New South Wales but is yet to be effective in Victoria.

The proposed legislation by the Andrews government aims to give Victorian’s “a fair go” when buying a property and aims to increase the overall transparency throughout the industry.

Some of the changes proposed in the new legislation include:

Delivery of a new factsheet for buyers:

This will include recent comparable sales for a property, the median price for the suburb and the agent’s estimated sale price for the property

The revision of the property’s estimated selling price:

If the agent receives an offer, in writing, that is higher than the current advertised or estimated price

No “offers over” or “price-plus” advertising to buyers:

With the selling price only provided as either a single price or a price range. This price must fall within 10 percent of the upper and lower end).

 

real estate underquoting, residential sales software

The changes will apply to residential – private sales and auctions rather than rural or commercial.  The REIV have welcomed the announcement of the proposed changes, saying “changes to price quoting announced by the Government are a significant step forward and bring transparency and consistency to property transactions” Real Estate Institute of Victoria

Agents found to be breaching the new laws face fines of up to $22,000 and risk losing their commission.

Our residential sales software provides rich information to buyers at the time of enquiry and ensures your office is compliant from Day 1!

 

By – CEO
Insights Newsletter Sign up