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Sunday, January 10, 2016

PERMISSIONS Melbourne's eastern suburbs are hotbeds of underquoting: realAs.com Read more: http://www.afr.com/real-estate/melbournes-eastern-suburbs-are-hotbeds-of-underquoting-realascom-20160110-gm340k#ixzz3wuQQmWJt Follow us: @FinancialReview on Twitter | financialreview on Facebook

Share via Email Share on Google Plus Post on facebook wall Share on twitter Post to Linkedin Share on Reddit Victoria is cracking down on estate agents that underquote Victoria is cracking down on estate agents that underquote by Larry Schlesinger Melbourne's eastern suburbs estate agents are the country's worst underquoters, according to figures compiled by property price predictor app realAs.com. The figures, which cover auction results over December, also reveal that Melbourne agents are significantly worse than their Sydney counterparts when it comes to providing a realistic estimate of property selling prices. On average estate agents in Melbourne's worst suburbs for underquoting were out by 24 per cent of the final selling price, compared with 13.8 per cent in Sydney. By comparison, realAs.com, which makes its predictions using an algorithm of past sales data, current market information and crowd-sourced data, was within 7.3 per cent of the final selling price in the same suburbs in Melbourne and within 6.4 per cent in Sydney. Eastern suburbs dominate in Melbourne Eastern suburbs dominate in Melbourne The results came a day after Victorian consumer affairs minister Jane Garrett said six Victorian estate agencies had been raided as part of a blitz on underquoting, the practice where real estate agents advertise properties for a price less than the vendor's reserve price, or well under the likely sale price. HOUSE-HUNTERS' HEARTBREAK "We know this is a problem and it can be heartbreaking for potential buyers who are lured in by these tactics," Ms Garrett said on Sunday RealAs chief executive Josh Rowe said real estate agents in NSW had most likely lifted their game in anticipation of new state underquoting rules which came into effect on January 1 and carry with them the potential for up to $22,000 in fines and the loss of commissions. Sydney's Northern suburbs dominate list. (Note: East Ballina not in Sydney) Sydney's Northern suburbs dominate list. (Note: East Ballina not in Sydney) But in Victoria, Mr Rowe said current underquoting laws put the onus on the home buyer to prove underquoting. "This is very difficult to prove," he said. The Melbourne suburbs with the least accurate agents were Moorabbin in the South East and the eastern suburbs of Ringwood and Heathmont. In Sydney, Eastwood in the north west and Hurstville in the southern suburbs had the least accurate estate agents. The six Victorian agencies being investigated by Consumer Affairs Victoria and who have not been named have all been issued with statutory notices demanding paperwork proving no unethical behaviour has occurred. Since July last year, CAV has been directed to check 200 auctions, where there have been suspicions of underquoting. "We are halfway through these inspections and the results will be used to inform any changes that are needed," Ms Garrett said. "This is about transparency and giving home buyers a fair go. Read more: http://www.afr.com/real-estate/melbournes-eastern-suburbs-are-hotbeds-of-underquoting-realascom-20160110-gm340k#ixzz3wuPyh0Vc Follow us: @FinancialReview on Twitter | financialreview on Facebook

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