Why are House Prices Still Being Misquoted

By: Amos Grham

Three years ago, the State Government introduced a law that it said would stop this practice. It requires that estimates are based on what 'a willing but not anxious buyer' would pay, and forbids agents from advertising for less than their own estimate. However, it does not attempt to define an underquote by percentage. As yet, not one agent has been prosecuted under the state law. It seems to me that this law is failing and it is time that the state government took action and began an inquiry into why this is occurring so frequently without any investigation.

It is obvious that this government legislation no facilities to solve the present problems. It is common knowledge that the Estate Agents Council has been asked to monitor the situation. Consumer Affairs Victoria has revealed that they would deal with complaints, however, industry sources say Consumer Affairs has done little beyond monitoring. Again, it comes back to buyer frustration and that is where the anxiety is. Of course, anyone in a service business understands that one should never want to estrange clients, particularly when they are sincere, genuine buyers.

Buyers with whom I have talked at auctions, know that they need to adjust to these real estate agents changing conditions and buyers experience in the market has taught them to add 20% to 25%, but when it becomes an outrageous amount like 40% or 50%, then buyers are becoming very annoyed. Looking online for genuine real estate can be difficult too, but to add to your search, why not login to reiv.com.au where they will assist and make sure that the property you are buying is the right one in terms of price, location, value, size, and lifestyle. The other site I highly recommend is OzFreeOnline.com where there are thousands of real estate ads, Australia-wide, and a real estate forum, which will help you get in touch with likeminded people, who have hints and tips you can exchange.

For me there is the emotional and rational side. I feel that house hunting is eating away at much of my life, and every time I feel as though I have a chance to buy within my price range, I have the rug pulled out from under my feet. It is positively exasperating and I feel the industry is treating potential buyers, just like me, with contempt.

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