I am interested in a property that is advertised at $230k plus. It went to auction and PI at a VB of $250k. I have spoken to the real estate agent and they advised that the vendor wants between $265K – $280K. Are real estate agents allowed to do this? and is there anything I can do about this?
Well there were a few prosecutions by the NSW Dept of Fair Trading for agents who had underquoted prices for an auction. The asking price is 20% below vendor's expectations a huge discrepancy. Speak to the dept and see if they would be prepared to investigate.
If you are interested in the property, undertake your due diligence, establish what the property is worth (spend a couple of hundred dollars on a valuer and use this as your negotiation tool).
Reminds me of RE agents telling everyone "Rent incomes up to 800$ per week!"
Can you complain at the Dept of Fair Trading when you only get 200$ ? I mean, they were right, 200$ is up to 800$
What about you asking 800.000 for a house , when it's worth only 240.000 ?
Can I sue you for asking an unrealistic price ?No, the agent is only following your directions. They should advise you against going for a fishing trip (unless you are paying all of their costs).
I believe the law says that it is false and misleading if the sale price wanted is more than 10% above the +.
Rogues eh?This is the relevant section of the Queensland Property Agents and Motor Dealers Act.
The interesting point I would like to share with regard to this section of the Act is that the 'BUYERS" could care less that it is not lawful for us to advise a price for an Auction property but their standard reply is 'You're an Agent, you should know what it's worth or at least a price range!' and in so many cases, they get so upset when you advise that you can't tell them.
I think that the reality is that in most cases, genuine buyers who have been looking at other properties will have a general idea of what price range the property falls in and from there it's up to them to decide the ceiling that they wish to place on the property. If subsequently someone else wishes to place a higher ceiling on the property, there is no sense getting upset with the Agent – it's out of their control.
From experience, I have found that the people who winge the loudest are the ones looking to steal the property (or get a bargain at best). If you think that the price quoted is low then it probably is.
I personaly abhore this process of underquoting almost as much as 'Overquoting' for the listing – unfortunately both are the result of the inbuilt greed of mankind. The Buyer wants to buy low and the Seller wants to sell high. When one of you Agent hater geniuses figure out a fair way to address this situation, please let us all know. Until then we have what we have – learn to deal with it.
‘574D Real estate agent not to indicate reserve price to
potential buyer
‘(1) This section applies if a person wanting to buy residential
property (potential buyer) asks a real estate agent for
information about the price at which residential property that
is to be, or may be, offered for sale, whether or not by auction,
(offered property) is likely to be sold or is, or is likely to be,
offered for sale.
‘(2) If the offered property is to be offered for sale by auction, the
real estate agent must not disclose to the potential buyer—
(a) whether the seller has set a reserve price for the offered
property; or
(b) the reserve price set for the offered property; or
(c) an amount the real estate agent considers is a price
likely to result in a successful or acceptable bid for the
offered property.
Maximum penalty—540 penalty units.
‘(3) If the property is not to be offered for sale by auction and the
seller has instructed the real estate agent not to disclose the
price at which the seller is willing to sell the offered property,
the real estate agent must not disclose to the potential buyer
the price at which the seller is willing to sell the offered
property.
Maximum penalty—540 penalty units.
‘(4) However, the real estate agent does not commit an offence
against subsection (2) or (3) if, on the seller’s written
instructions, the real estate agent gives the potential buyer a
copy of whichever of the following was given to the seller—
(a) the comparative market analysis for the offered
property;
(b) the written explanation showing how the real estate
agent decided the market value of the property.
The full Act can be read here http://www.legislation.qld.gov.au/LEGISLTN/ACTS/2006/06AC010.pdf
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