NSW’s Strata and Property Taskforce is stepping up spot checks on real estate agencies, asking agents to prove how they arrived at their advertised price guides.
Inspectors look at two current listings per agency, checking the comparable sales behind each guide and reviewing emails, texts, WhatsApp and WeChat messages sent to interested buyers. In the past 12 months the team attended 116 auctions, ran 469 compliance checks and issued more than 70 fines worth almost $160,000.
From mid-November the maximum penalty for underquoting rises from $22,000 to $110,000, or three times the agent’s commission if that is greater. The dummy bidding penalty also doubles to $110,000. Agents can’t advertise a price below a previously rejected written offer or the highest unsuccessful auction bid, and from February they must publish a statement of information explaining their guides.
The changes land in a cooling market. Sydney’s median house price has fallen 5.8% this year, and some agents worry the new rules will bite. The Fair Trading Minister says clearer pricing will save buyers wasted inspections.
What it means for your money
If you are buying in NSW, ask agents how a price guide was set and watch for the new statements next year. Sellers should price realistically, as rejecting offers can now limit how far a guide can drop later.
Source: SMH Business