How to protect yourself from underquoting
As bad as the problem is, you still need to protect yourself from wasting time and over-paying for a property until Consumer Affairs cracks down on this behaviour. Here are a few things you can do:
Consult an expert
Talking to a buyer’s agent or real estate agent not connected to the property will give you a better idea of what the property is really worth. Buyer’s agents are experts in researching property and have access to historical data which will give you a much better estimate of how much the property will sell for. Because they charge a flat fee, they don’t benefit from misrepresenting the price of the property and they will give you an accurate appraisal.
Do your own research
It won’t take much too much effort to research sold properties on https://www.realestate.com.au/sold/ in the suburb you’re looking to buy in. Just look for houses with the same number of bedrooms and in similar condition, within a few kilometres of the property you’re considering, and you’ll quickly be able to tell if the real estate agent is being genuine or not.
Ask real estate agents for evidence
Real estate agents should be able to explain to you how they came up with their estimated price. If they are unwilling to explain to you, hesitate or make excuses, you should be wary of dealing with them. You could report them to Consumer Affairs, but in our experience. This is ineffective.
At Wise Real Estate Advice we are dedicated to dealing in good faith and implementing best-practice when dealing with clients, real estate agents, and all the governing bodies – including Consumer Affairs.
We expect the same in return, but that is simply not happening as Consumer Affairs continues to ignore this problem and neglects to enforce its own laws.
We intend to hold CA accountable to their inaction so that we may begin to enforce the standards that are in place to make the property market an ethical and level playing field.