Looking to sell? What you should know about Victorian pricing laws.
By Advantage Property | 7th Mar 18
Read more about how this may affect you.
New real estate pricing advertising laws came into play last year in May and if you are planning to sell in the near future, it might be helpful to understand what is considered misleading or deceptive when it comes to underquoting. According to Consumer Affairs Victoria, it is now illegal for the seller or agent to falsely represent a property in advertising or marketing where it be in person/verbally or in writing.
The new laws introduced last year require all advertised residential property to be priced in two ways.
- A single figure (eg $600,000)
- A price range with a maximum of 10% (eg $600,000 - $660,000)
Previously there was no restriction when pricing property, which lead to an influx of underquoting throughout 2016-2017.
So how is the price or figure identified as not being misleading? Agents and their representatives are required to provide something called “Statement of Information” which lists three comparable sales results within the last 6 months in a 2km radius to justify the proposed sale price of the property. Note these laws are specifically for metropolitan properties with rural Victoria still complying with Australian Consumer laws.
What does this mean for me if I am looking to sell?
As a vendor, you do not have to tell your agent your ideal sales price until they disclose their reserve on the day of auction. If you do not wish to disclose your final price, your agent is able to use their market experience and be guided by the Statement of Information to price your property appropriately. If you do choose to disclose your selling price at any point to your agent, they legally must not advertise the property for less than that amount. By definition, quoting the sale of property less than what was disclosed from the vendor to the agent is underquoting.
With over 17 years as buyer’s agents, vendor agents and sales professionals, we are always here to help you get the best outcome for your situation. If you need assistance with working with your agent, our vendor advocacy service can really benefit you. We will be there helping you through the whole process and working with your agent to get the best outcome for your property. For more information on our services email: firstname.lastname@example.org