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The charges against Barry Plant Manningham were dropped following allegations that had been levelled by Consumer Affairs Victoria.
As reported by REB, Consumer Affairs Victoria announced in March 2024 that it would pursue court proceedings against the north-eastern Melbourne agency for alleged underquoting during a recent sale of a townhouse in Ivanhoe.
Facing Melbourne Magistrates’ Court on 23 October, the agency, which had strenuously denied the allegation it had engaged in underquoting, was cleared of wrongdoing when the prosecution announced it would withdraw all the charges.
The three-bedroom home in question sold for $1.538 million at auction in July 2023, a figure which Consumer Affairs Victoria at the time noted was “about 40 per cent above the highest end of the price range” given by the agency during the marketing process.
Once the watchdog raised concerns, the agency was reported to be cooperating fully with the investigation, while maintaining that the business and its directorial team – which includes Spiro Drossos, Mark Di Giulio and Theo Politis – had not engaged in underquoting, which is a breach of the state’s Estate Agents Act 1980.
Barry Plant’s chief executive officer, Lisa Pennell, heavily refuted the claims of underquoting at the time, stressing that the agency had worked throughout the campaign to provide accurate price advice based on current market conditions and buyer feedback.
The Ivanhoe property in question was initially launched to market with a price guide of $900,000 to $950,000. The guide was then “lifted within the first few days to $1 million to $1.1 million after initial buyer feedback,” Pennell explained.
She added that it had been a challenging property to appraise, given its unique position in front of an off-leash dog park and directly facing public toilets within metres of the front door. In addition, the property was largely unrenovated.
On the day of the auction, the vendor’s reserve was set at $1.04 million. The network stated that two bidders who were buyer’s advocates acting on behalf of purchasers became locked in “competitive and determined bidding” that pushed the price well beyond the vendor and agent’s expectations.
Following Consumer Affairs Victoria’s initial inquiry, agency director Drossos reportedly engaged in lengthy discussions with the body to explain the full facts of how the business had approached pricing for this particular property.
The agency did not apply for costs following the announcement that the charges had been dropped.
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
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