Underquoting in Real Estate

Underquoting in real estate refers to when a property is advertised for sale at a price that is lower than the expected final sale price.

This practice is illegal in Victoria.

Unfortunately, it still occurs, and it can be frustrating and misleading for buyers. Here, we will explore the issue of underquoting in Victoria and what you can do to protect yourself as a buyer.

Why does underquoting occur?

Underquoting can occur for various reasons.

Some agents may use underquoting as a marketing strategy to generate interest and attract more potential buyers to the property.

Other times, agents may not have a clear understanding of the true value of the property or may deliberately provide a low estimate to secure a quick sale from an uninformed seller.

Underquoting can be misleading for buyers, causing them to waste time and resources pursuing properties that are out of their budget. It can also lead to a lack of trust in the real estate industry and create an atmosphere of mistrust and frustration.

As a buyer, it's important to do your research and have a good understanding of the market and property values before making an offer.

You can also work with an agent who can provide you with an accurate market assessment and help you negotiate a fair price.

The Victorian government has taken steps to address the issue of underquoting in the state. In 2016, the government introduced new laws that make underquoting illegal and impose significant fines and penalties on agents who engage in this practice. The government has also established a taskforce to monitor and enforce these laws.

In conclusion, underquoting is a serious issue in Victoria that can have negative consequences for both buyers and the real estate industry.

As a buyer, it's important to be informed and take steps to protect yourself. The government is also taking action to address the issue and enforce the laws against underquoting.