Underquoting and How to Avoid the Trap

The unscrupulous tactics of some Melbourne and Sydney real estate agents have seen price guides underquoting property sale prices by over 30 per cent.

In Melbourne, areas with strong Chinese investment are at the highest risk for underquoting. At the top of the list, properties in the outer east have seen houses selling between 25 and 33 per cent more than the quoted amount. The most notable suburbs are:


  • Mount Waverly
  • Blackburn South
  • Templestowe Lower
  • Box Hill
  • Vermont


Similarly, the northern beaches of Sydney have seen properties sell up to 27 per cent above quoted estimates. These suburbs include:


  • Ryde
  • Peakhurst
  • Epping


How can they get away with it?

The problem with under quoting is that even though it is illegal, it is practically unenforceable. Many agents have found loopholes by pulling down estimates before auction day to avoid any official allegations of wrongdoing.

Although rife in particular suburbs, it is important to note that not all agents in all areas practice underquoting. The problem facing diligent agents in high underquoting areas is the reduced interest they receive in their properties as a result. Underquoting expects a higher turn out to inspections and auctions with more people believing the property is within their price-range.


How can it be avoided?

As with everything in life it is important to do your homework. The best way to avoid the trap underquoting presents is to research the area and similar properties thoroughly to go in with eyes wide open knowing the realistic price range a property is expected to achieve.

By Samantha Vlcek. buyer's agent google plus image

WISE BLOGBuyers Agent Twitter Buyers agent linked in  Facebook Wise Real Estate Advice buyer's agent google plus image Buyer's Advocate Melbroune You Tube Buyers Agent blog

  • +61 3 9982 4545

    Your Name *
    Your Email *
    Phone Number
    Your Message
  • Wise Real Estate Advice

    Wise Real Estate Advice
    Reviewed from Google

    5 out of 5 stars

    Hari Krishnan
    Hari Krishnan

    5 out of 5 stars

    posted 1 month ago

    I found Mark through Google!!!.
    Since my first meeting I felt so confident in Mark's ability and experience in being able to deliver a great result. I was very much impressed with Mark's service as he made the whole process easier and stress free!!!!

    I am really happy because I bought exactly what I was looking for and it was well under my top budget. Most importantly We did it within few weeks.

    Since day one Mark was very pro-active.

     Mark emailed multiple properties every week within my search parameters and wish list.
     Mark allowed me to be involved as much as I wished.
     Mark inspected the properties I liked.
     Mark explained the positives and negatives about each property.
     Mark held a pre-auction meeting and attended the auction
     Mark's strategies and suggestions like where he’ll stand during the auction, how he’ll handle the negotiation etc. etc. and through to the final shaking of hands inside the house all played out in a positive way.

    Thank you Mark for all your work in getting me the right house for the right price!

    I highly recommend Mark for everybody who wants to find a good place to live or invest.

    Many, many, many thanks!

    Ken Stewart
    Ken Stewart

    5 out of 5 stars

    posted 5 months ago

    Mark was personally recommended to me as someone who could be of real help in appraising my property of interest and subsequently representing me at auction.
    He made time to meet for an initial chat over coffee. I was immediately impressed and relaxed with his easy and honest nature, as well as his willingness to listen to my needs.
    A genuinely nice bloke... well experienced in the RE scene, totally committed to helping his clients.... all in all, a very worthwhile experience.