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Victoria’s peak real estate body has criticised the state government for proposing “unnecessary” underquoting laws without consultation.
The Victorian Coalition government announced it would introduce new laws to deal with a “huge spike” in underquoting if re-elected on November 29.
However, Real Estate Institute of Victoria CEO Enzo Raimondo said laws prohibiting underquoting have been in place since 2006.
“To replicate these laws would appear – at the very least – to be unnecessary,” said Mr Raimondo, adding that Consumer Affairs Victoria is “very vigilant” in ensuring that the industry plays by the rules.
“The checks take place on a regular basis, including one major audit in the past 12 months. This ensures that a close watch is kept on real estate pricing,” he said.
Mr Raimondo also said the government’s “puzzling” announcement about underquoting had come “out of the blue”.
“To make an announcement like this, one week from the election and without consulting the REIV as the peak industry body, is not only surprising but disappointing,” he said.
“We would hope that if the Napthine government is re-elected, it is able to consult with industry and the broader community on a whole range of issues.
“This certainly needs to be done far better than it has on this occasion.”
Meanwhile, the Real Estate Institute of South Australia announced yesterday that it would create an underquoting advisory panel to help determine whether "sufficient information and evidence exists to progress a formal complaint of underquoting through the official REISA grievance channels".
The move follows the SA government's introduction this year of tough new laws to combat underquoting. The laws, which came into effect on 1 January 2014, give a prospective purchaser the reserve price of a property if it is advertised with a price.
- <p>This issue is a bit like Lance Armstrong, ex President Clinton, the Catholic church etc ...</p><p>Deny, deny, deny ....until the truth comes out ...</p><p>It's just a matter of time really</p>0
- <p>Good idea Mark !</p>0
- <p>Jack, the issue keeps getting deliberately muddled.</p><p>No one can predict a sale price HOWEVER if agents/vendors were transparent and honest about the reserve price to begin with, only genuine buyers would attend auctions and then market forces will determine the result.</p><p>As a Buyers Agent, when I come across agents who verbally start to quote $1.8m on a property worth not less than $2.4m and the reserve on the day is $2.425m, that's underquoting and that's the issue/problem !</p>0
- <p>Greg, can you please tell us the winning Lotto numbers next week ?</p>0
- <p>I think an electronic listing agreement compiled by the Department of Fair Trading in each state should be designed. The price range given in the listing form must be no larger than 10% otherwise the entry will fail and the Department will not recognize the listing agreement. A code will be given in acknowledgement of the listing form being successfully entered at the Department. Any on line advertising must have that code so the Department can automatically cross reference the advertisement against the listing agreement. Any price guides and search criteria referring to price in advertisements must be searchable by the Departments programs.</p>0
- <p>The real estate business continues to have their heads firmly buried in the sand on this issue, its no wonder when captains of the industry make out its a figment of ones imagination. If these professionals as they are loosely titled cant get their quoted price within 10% of the eventual sale price why as a vendor would you want to pay them the big bucks.</p>0
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