New legislation requires Real Estate Agents to provide clear price guides when Victoria’s new underquoting laws come into effect on May 1. Online listings will need to provide a Statement of Information the includes a single price or a price range of no more than 10%. Three comparable sales are also to be provided. These Statements of Information will be made available at all Open For Inspections. Qualifying words such as “from” “plus” and “offers above” are no longer allowed. The new legislation applies to all properties listed from 1st May 2017. It follows a consumer affairs crackdown against several Melbourne agencies. Many agents have already adjusted the way they operate in preparation for the introduction of the new laws. Changes aimed at making the industry more transparent were a good thing but cannot provide ultimate certainty of the price range a property would sell in.
The underquoting laws are one thing but they’re not going to solve the underlying problem at the moment which is not enough houses and much more demand than supply.
Overall there’s still going to be some challenges for buyers. This will hopefully make it transparent but the main challenge for buyers is the market we’re currently experiencing with properties still selling above reserve.
Instances of underquoting have been in decline and consumers and industry participants have welcomed the changes.
Information from realestate.com.au