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Tom Panos has issued his own warning to agents who may be engaging in the illegal practice of underquoting.
In the midst of boom-time conditions, recent media reports have shone a light on the prevalence of underquoting — fuelled by a notice from the NSW Minister for Better Regulation and Innovation, Kevin Anderson.
Late last month, he had warned that Fair Trading inspectors would be visiting real estate agencies, auctions and open homes across Sydney suburbs to crack down on the practice of underquoting.
“With so many people in NSW looking to buy, the last thing that potential home buyers need is to have their time and money wasted by real estate agents providing misleadingly low and incorrect price estimates,” Mr Anderson had said.
Responding to the media attention and the warning from the NSW minister, Mr Panos, REB’s head coach and trainer, and the founder and owner of Real Estate Gym, has flagged that government authorities could be coming out to an open for inspection or an office near you.
“I’m letting you know that this is a serious issue for the government right now, and chances are that if you’re an auction-type business, you’re going to have someone from the authorities catching up with you in the very near future,” Mr Panos said.
In New South Wales, the Property Stock and Business Agents Act states that agents who commit an underquoting offence can be fined up to $22,000 and can lose their commission and fees earned from the sale.
In his video, Mr Panos highlighted the “big difference between underquoting and getting an incredible price on a property”.
“Just because something sells $300k over reserve, doesn’t mean it’s been underquoted. Make sure that you are within the range that your state allows you to be,” he advised.
The coach called out the catch-cry “quote them low and watch them go” as “stupid” and “ridiculous”.
In conclusion, Mr Panos said: “This is a reminder that if you’re being complacent about it, get on top of it and make sure you go to your state governing body and get super clear about what you can and can’t do.”
It’s not the only law agents need to be on top of.
In just one week in March, Mr Anderson flagged that Fair Trading inspectors had issued nearly $6,000 in fines related to 14 law breaches, which included instances of underquoting, operating without a licence and failure to have the right insurance.
ABOUT THE AUTHOR
Grace Ormsby
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.
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