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One of Australia’s largest real estate portals has developed a tool to help agents comply with the new underquoting laws introduced by Consumer Affairs Victoria on 1 May.
Realestateview.com.au developed a new 3Comps tool to help both real estate agents and prospective buyers obtain a realistic value of a home based on three comparable sales in the area.
As part of the Estate Agents Act 1980, real estate agents in Victoria will now be required to provide a statement of information (SOI) and three comparable property sales to prospective buyers across all residential listings.
The legislative change followed several high-profile underquoting cases and is aimed at ensuring property advertising is not misleading or deceptive.
Realestateview.com.au CEO Enzo Raimondo said he welcomes the legislation.
“The 3Comps tool compliments the compliance requirement in a way that will improve the user experience for those searching for property,” Mr Raimondo said.
“It allows agents to display three comparable properties dynamically on their listing while creating a branded SOI for agents.”
Victorian agents have been positive about the changes.
“I think anything that adds transparency, anything that gives the real estate industry and the profession more integrity is a good thing,” PhilipWebb Real Estate director Philip Webb said.
“We have to keep complying with what is needed and I see this as just an extension of that.”
The statement of information agents are required to provide prospective purchasers is essentially a buyer fact sheet containing three comparable sales, the town’s median house price and the agent’s estimated selling price.
In regional Victoria, the comparable homes must have sold in the preceding 18 months and be within a 5km radius of the property for sale.
The comparable homes must be of similar standard, size and condition to the property that is up for sale. If the agent believes there are fewer than three comparable sales that meet these parameters, they must say so.
In determining the estimated selling price, agents are required to take into account the selling prices of these comparable properties with the price expressed as either a single amount or a price range not greater than 10 per cent. Offers over and price-plus advertising is prohibited.
Agents will also be required to revise the property’s estimated selling price if the agent receives an offer above the advertised range.
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