Experts say agents often list properties for much less than they’re worth to lure in buyers – and regulators ‘don’t seem to care’
Scott Aggett, the founder of property negotiation service Hello Haus, says positioning a property lower than its value lures buyers “into the fight” by manufacturing a level of competition and emotion.
He says discrepancy between the price guide and reserve price doesn’t necessarily mean underquoting, as the market can change between the time of the two estimates. “The vendor won’t set their reserve price until just prior to the auction and this is why so many reserve prices are well beyond the price guides given to buyers.”Aggett says he “constantly” makes written offers to agents that aren’t outwardly rejected, but sidestepped to avoid changing the price guide.
“The agent said we’re committed to selling at auction,” he says. “But he was still quoting $800,000.”Aggett says the regulators “don’t seem to care”. “It’s so blatant. How come Fair Trading can’t find these examples if I can?”In May last year, NSW Fair Trading established a dedicated underquoting team to address “rising concerns” about the practice.and announced a $3.8m taskforce had been established after underquoting was identified as a “key concern” in the state’s property market review.