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An auctioneer for one of the country's major independents has backed the logic behind Queensland's soon-to-be implemented auction price guide reforms, criticised this week by McGrath.
Peter Burgin, chief auctioneer at Place Estate Agents, a finalist in the REB Awards, told Real Estate Business he found McGrath Estate Agents chief executive John McGrath’s comments on the state’s price guide laws "strange".
"What's strange about it is that under the new law an agent can provide pricing information on a property with the seller's permission,” said Mr Burgin.
He said this can be done as long as the consumer makes a formal request.
"This can be as simple as a member of the public seeing a property on the internet that's going to auction and ringing an agent to say, 'Look, I request the pricing information for that property'," he explained.
“If the seller has granted the authority to the agent then we can actually provide that information," said Mr Burgin, who did back Mr McGrath’s call for agents found to be engaged in underquoting to be kicked out of the industry.
Mr Burgin said the new price guide laws in Queensland mean the discussion about pricing on a property now becomes “about fact, not fiction”.
He said the best barometer for the value of a property is the comparable value of similar properties that have been sold.
"If agents research and sellers research, the agent can then have a meaningful discussion with the seller about the value of their property," he said.
Mr Burgin warned that continuing to allow agents to price guide properties is asking for trouble because "invariably people will get it wrong".
“But if you use some sensibility in establishing the value of properties, more times than not you're going to get it very close," he said.
Mr Burgin said at the moment what's happening is agents are having “curbside conversations” with buyers, which are in many cases based on the seller's motivation and based on the wrong comparable.
"One day I’d love to see our industry, the people representing real estate agencies, where there's enough prowess to responsibly price properties going to auction, but I don’t believe we’re in that situation yet," he said.
- <p>Considering he is an auctioneer actually operating in Queensland who will have to operate under these new laws I think he has a valid opinion whether you agree with him or not.</p>0
- <p>Richard. It is not nonsense. It is a new LAW coming into Queensland. I think you missed that in the discussion. New laws about to start stop an agent from discussing price with a buyer. You do it, you are breaking the law plain and simple. If the owner allows you to in writing (again.. part of the new law in QLD) you can give them essentially a CMA. McGrath does not like it. Burgin says he does not mind it because agents are only allowed to be sharing factual sales data of comparable homes and not opinions of what price he thinks/hopes/dreams he can get. You dont have to agree with Burgin at all, but at least understand the discussion</p>0
- <p>Absolutely agree Richard.</p>0
- <p>Agree 100% with Mr Burgin, McGrath are the biggest under-quoting col crypts in the nation.</p>0
- <p>As a Buyer's Agent in Melbourne, underquoting is rife. I'm lucky as I have access to historical data and I can identify even before I leave the office that the property is underquoted. I agree that underquoting must cease as it is costing prospective purchasers a fortune on building/pest inspections, lawyers reading contracts etc. I also believe that this is one of the main drivers of property escalating in price. I feel so strongly about underquoting that I am selling my own apartment in Melbourne on the 19th July in Abbotsford and I have advertised the reserve. It will be interesting to see the result.</p>0
- <p>Agree with Peter Burgin. Why pollute the auction process with price opinions anyway? Buyers know what properties are worth ... at the very least what they believe a property is worth to them. Leave pricing guesswork out of the equation until the auction takes place. The property can be priced afterwards if it doesn't sell at the auction. Let the auction process and the market do their work without unnecessary interference via price opinions from agents prior to the auction. John McGrath has a great real estate brain but he is wrong on this matter. Put a price on properties or leave the price off and take them to auction. Just don't mix the two and stuff the auction process up by doing so.</p>0
- <p>What a lot of nonsence from Mr Burgin. In listing a property for sale the agent is required to give the owner an estimate of value which obviously has to be correct being based on real data and the agents experience. There will always be an element of subjectivity in all estimates of value as no two properties are the same and no two selling environments the same.....one day there may be 3 buyers, another day only 1 so the dynamics are variable. By signing an agency the owner obviously gives the agent the right to discuss price with an enquirer. It is the first question anyone asks. What nonsense that an agent has to get specific authority to talk about price. There is only one value range of course and it is the same for the vendor and the seller. If an agent cannot handle this situation then they should not have a license. Richard Corbett</p>0
- <p>Maybe every property should go to Auction and Reserve disclosed before the bidding begins...then bidders know where to start and let the game start</p>0
- <p>Peter who???</p><p>I'm sure he's in a much better position to comment on this than John McGrath</p>0
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