Staggering percentage of audited real estate agents found underquoting
Almost 60 per cent of real estate agents audited by Victoria’s consumer watchdog have been slapped with fines for underquoting.
Consumer Affairs Victoria visited 29 metropolitan and regional real estate offices in May after tip offs about underquoting.
Underquoting is illegal and can attract fines of up to $33,000.
President of the Real Estate Institute of Victoria, Adam Docking, says the practice isn’t helpful.
But he says, in many instances, property competition not underquoting explains why homes sell for well above the estimated sales range.
“We’re in a rising market, especially with the lockdown,” he told Ross and Russel.
“Some of these properties could have been appraised six, eight or 10 weeks ago.
“If the property is on the market at an auction in that range and goes above that in the final sales price, it’s not necessarily underquoting, it’s just strong, stiff competition.
“Where underquoting is blatant is if the property is passed in above the top of the range, or if an offer is rejected above the top of the range.”
Press PLAY below to hear Mr Docking’s view on underquoting