The Melbourne suburbs where underquoting will surge this spring

Amid near perfect conditions for underquoting, Victoria’s Consumer Affairs Minister Nick Staikos has pledged to have the state’s underquoting task force “out in force”.

Victorian home buyers are facing the worst spring for underquoting since 2021 amid near perfect conditions for dodgy agents to hide their bad behaviour.

Regional real estate agent John Keating has been fighting against underquoting for decades and said three interest rate cuts would “lead to agents underquoting more freely”.

“And you will see more step quoting, where a home started off at $800,000-$880,000, and then went up to $900,000-$950,000 and then to $1m on the night before auction,” Mr Keating said.

RELATED: Next step in Porter Davis legacy passes parliament

Victorian homebuyers warned unquoting is on the rise by property experts

Major real estate reform revealed to combat Victoria underquoting

Buyer’s advocates are also sounding the alarm about underquoting this spring as all of the nation’s major banks have tipped Melbourne for significant home price growth over the next 18 months, with Westpac estimating as much as a $100,000 rise is on the cards, while interstate investors are already driving prices far beyond expectations in some areas.

“With all these things, it’s a perfect storm,” said Property Home Base founder Julie DeBondt-Barker.

“It’s smelling like 2021 again, and it was pretty rampant right after Covid.”

Ms DeBondt-Barker said both complaints and instances of underquoting typically rose when the market “starts to take off” and there’s a “smoke screen they (bad agents) can hide behind”.

“But if an agent is in the market every day, they should be able to quote within 10 per cent and get it right — even in a rising market; they know it’s rising,” she said.

Property Home Base founding director and buyers agent Julie DeBondt-Barker has warned underquoting could be at its worst level since 2021 this spring.

But she said there were ways to catch the bad agents out.

She advised contrasting comparable sales for seemingly identical properties listed with their distance from key infrastructure such as local train stations or less versatile floorplans.

She also advised keeping an eye out for agents who routinely dodged questions over whether the vendor’s reserve was in the advertised range, or their homes were regularly not being called “on the market” at auctions despite clearing the top of the guide price.

“And if their results are consistently undisclosed, that’s a warning,” Ms DeBondt-Barker said.

Prominent buyer’s advocate Cate Bakos said buyers should watch out in particular around Box Hill, Thomastown, Lalor, Epping, Sydenham Taylors Lakes and surrounds.

“But generally about 15-20km around the city, that’s where it’s happening most — and the outer east is really bad too,” Ms Bakos said.

Victorian Consumer Affairs minister Nick Staikos has warned underquoting “will not be tolerated”. Picture: NewsWire / Diego Fedele.

Minister for Consumer Affairs Nick Staikos said the state’s underquoting task force would “continue to go after dodgy real estate agents”.

“Our underquoting task force will be out in force in coming months as part of its spring inspection campaign,” Mr Staikos said.

“We are sending a clear message to agents and vendors that underquoting is unfair, illegal and will not be tolerated.”

Since it was launched in 2022 the taskforce has tracked more than 2600 individual sales campaigns, attended more than 300 auctions and issued 191 fines worth a combined $2.1m.

They have also delivered 257 official warnings, but have received more than 6400 submissions from the public and other real estate agents.

You can report underquoting at http://consumer.vic.gov.au/underquoting

Tips To Beat Underquoting This Spring

– Google comparable sales listed in the statement of information and contrast proximity to key infrastructure as well as localstreetscapes;

– Check floorplans are actually comparable, as well as the quality of homes;

– Take note of agents who consistently do not disclose sold prices;

– Watch for agencies whose auctions are routinely not “on the market” after topping their price guide;

– Ask the agent if the reserve is in the price range;

– Ask rival agents what they think about the listed price;

– Take note of any reliable agents you do encounter and ask them about their rivals;

– Use recent sold results to compile your own list of truly comparable sales, and base prices expectations on this.

Source: Cate Bakos Property, Property Home base

Sign up to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered direct to your inbox.

MORE: Chemist Warehouse family’s secret $20m+ Toorak buy

Call to name and shame, disclose reserves in bid to finally nail underquoting

Crisis behind $155k Melb sky home surge

The post The Melbourne suburbs where underquoting will surge this spring appeared first on realestate.com.au.