Melbourne might host the highest number of property auctions in the country but it has some of the worst practices, leaving sellers and buyers at risk of losing thousands of dollars.
Real estate experts are calling on the Victorian government to tighten regulations around auction processes in order to protect buyers and sellers from disingenuous bidding practices.
While bidders in the other states including New South Wales, Queensland and South Australia are required to register with the listing agency before bidding at auction, Victoria has no such policy. This means anyone can place a bid and potentially disrupt the auction outcome should they not follow through.
The REIV has again called for the introduction of mandatory bidder registration before an auction commences. Recording the bidder’s name and contact details helps to ensure they are a legitimate buyer.
In other states where mandatory buyer registration is enforced, the real estate agency can sign a contract and purchase the property on behalf of a final bidder if they walk away from an auction sale.
It is hard to imagine anyone opposing such a simple but effective regulation, should the Victorian government decide to listen to the experts.
Chat to us about how a property advocate can help you sell or buy in the current market with confidence. Investment buyers can receive invaluable support and guidance through our Buyers Advocacy Service, and for landlords who are selling, our Vendor Advocacy Service helps vendors achieve outstanding results.
To book a free 20-minute consultation, simply click here and choose a time convenient to you.
