The problem of underquoting in real estate is more prominent in the auction sale method, which leaves Victoria, known as the nation’s auction capital, broadly impacted.
The Victorian Government’s proposed remedy for the underquoting problem is to require sellers to disclose their reserve price seven days before auction, or be banned from selling. Will it work?
Surveys show that the proposal lacks industry support, and only 50% of the surveyed members of the public felt that it could fix the problem, with 26% of people surveyed saying they would reconsider selling by auction if the proposed changes were to come into effect.
Industry experts suggest the solution needs to be fair to both buyers and sellers. The Real Estate Institute of Victoria (REIV) have proposed changes which involve sellers disclosing a price range which includes the reserve, three days prior to the auction.
Whatever changes end up taking effect, we hope it will go a long way towards eliminating the practice of underquoting in real estate. Stay tuned!
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By Wendy Chamberlain
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With a passion for all things real estate spanning 30 years, Wendy loves that her role as a Buyers and Sellers Advocate gives her buying and selling clients an experienced voice they can trust when it comes to negotiating to buy or sell something as important as their home or investment. Wendy considers it a privilege to be asked to help others realise such an important goal as home ownership and to be trusted with that honour. Get in touch today via www.chamberlainadvocates.com.au for a no obligation chat about how Wendy can work with you and help you save time and money to secure your new home sooner.