property auctions

PHOTO: Underquoting happens when an agent advertises a home at a price lower than the seller will accept. FILE

📊 The Big Picture

Victoria’s housing market is in the spotlight after new figures show 1 in 2 homes sold at auction are smashing past their advertised price guides.
Consumer advocates say rampant underquoting is deceiving buyers, fuelling bidding wars, and pushing affordability further out of reach.

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⚠️ What’s Underquoting — and Why It’s a Problem?

Underquoting happens when an agent advertises a home at a price lower than the seller will accept — often far below what the market ultimately pays.
This tactic:

  • 🎯 Draws in more buyers

  • 💸 Fuels emotional bidding wars

  • 🚫 Leaves buyers feeling tricked

📈 The Hard Numbers (Recent Taskforce Blitz Findings)

📍 Metric 📌 Value
🏡 Campaigns monitored 2,500+
🚨 Official warnings 244
💵 Fines issued $2M+
📑 Legal actions filed Multiple cases in court

Stat to remember: In Melbourne, over 50% of homes at auction sell for 10%+ above the quoted range.

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🗣️ Public Pressure on Government

🏛️ Consumer Affairs Victoria’s Taskforce is active — attending auctions, inspecting campaigns, and issuing fines — but critics say laws are too weak.
Calls for reform include:

  • 💪 Higher penalties that remove commission gains

  • 🔍 Stricter proof of how price guides are set

  • 📢 Publicly naming repeat offender agents

🛡️ How Buyers Can Protect Themselves

  1. 📋 Check the Statement of Information — must list 3 comparable sales and suburb median.

  2. 🔎 Research recent sales in the area (don’t rely on the ad).

  3. 📸 Keep proof — screenshots, ads, and communications.

  4. 📞 Report suspected underquoting to Consumer Affairs Victoria.

💡 Policy Fixes That Could End Underquoting

  • Mandatory ‘Source of Guide’ statements

  • Real-time auction logs

  • Bigger fines & faster penalties

  • Annual pricing ethics training for agents

📢 Community Voices

💬 “It’s literally false advertising at this point — report them!”
💬 “If your offer is inside the guide and gets rejected, that’s a red flag.”
(Source: r/AusPropertyChat)

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