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The debate around Queensland's controversial auction price guide reforms has caused some self-interest groups to pass disparaging comments on those with opposing views, according to the head of one of the country’s largest offices.
Andrew Bell, CEO of Ray White Surfers Paradise, has suggested that while the reforms may not be favoured by all real estate agents, they are in consumers' best interests.
“Ultimately, it comes down to what is in the best interests of the consumer, not the real estate agent,” Mr Bell told Real Estate Business.
“What some people don't seem to understand is the natural forces that are at work in a strong and rising market.
"That makes it difficult for an agent – who may not have the necessary qualifications to value a property – to place an accurate price guide.”
Earlier this month, the McGrath CEO weighed into the debate, calling Queensland’s new price guide reforms “crazy”, which was quickly followed by one of the state’s top auctioneers questioning John McGrath’s position on the issue.
Mr Bell suggested that while some agents would intentionally provide inaccurate price indications, he believed a majority would genuinely try to provide accurate assessments.
“But every week we are surprised in the industry at prices that buyers are paying which are well above our estimates,” he said.
“Price indications are flawed because there are too many unmeasurable forces at work that ultimately determine a sale price.
“As an industry, rather than continuing to promote a flawed system, we should err on the side of caution."
Mr Bell said the auction system without price indications had worked superbly for hundreds of years.
"And that was during a time when very little research was available to prospective buyers,” he said.
“Now, with a mass of easily obtained research, buyers are much more capable of making their own assessments and do so each week – whether it is purchasing a property listed for sale with a price or a property that goes to auction.
“It’s time to work with the law rather than complain," he said.
Last month, Mr Bell told Real Estate Business that real estate agents’ vanishing support of print advertising is the chief culprit behind the REA Group's dominant market share of advertising spend.
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