Miji Michael May 10, 2021
New underquoting laws were implemented in NSW from 1 January 2016 to give clearer rules for agents around the quoting of property prices.
Underquoting occurs when an agent knowingly gives a buyer a property price that is lower than the agent’s estimated selling price as outlined in the sales agreement with the seller. This is done in an attempt to drive interest in the property.
Passing off properties as ‘bargains’ means that potential buyers spend their time researching that property, potentially investing money in property inspections for that home and then either put in a private bid or attend the auction for the property. Other potential buyers are quickly left out of the running as the true value of the home is reflected in the actual bidding.
It is against Federal consumer law to underquote, and most states have additional regulations to further discourage the practice.
So if you suspect any bad behaviour then please consult your local regulator.