Underquoting is the act of publically advertising the price of a property as below its estimated sale price, or how much the seller is willing to accept. The property market is of course speculative, but many real estate agents deliberately under-price their properties to entice buyers and drive up the price of the home.
This is a huge problem in the real estate industry, and gives many buyers the false impression that they can afford houses that are well above their budgets. Many buyers are frustrated when they lose at an auction because they set their budgets based on the statement of information the real estate agent provides, but are immediately blown out of the water because the property is worth significantly more than the advertised price.
The issue however lies not with the real estate agents, but their governing body: Consumer Affairs Victoria. It is only natural that real estate agents will try and keep their prices low in order to win over customers and be competitive in the market, but when it comes to being dishonest about the realistic price of the property, then something needs to be done.