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  • Profile photo of fxdaemonfxdaemon
    Participant
    @fxdaemon
    Join Date: 2013
    Post Count: 114

    Hi experts,

    Sister is selling her home and asking for a price between $1.15m – $1.2m
    Selling agent claimed to be confident and therefore got the listing few weeks back.
    Same price range written in authority letter and signed. Statement of info (SOI)
    stipulates same range between $1.1m – $1.2m. Don’t know why but she never thought might be an issue.

    However, advertised range on internet shows $1.05m-$1.08m! This was done without any discussion with or
    knowledge of my sis, let alone consent or agreement from her. Very dodgy.
    Sis wasn’t happy and instructed that the advertised range to be corrected/updated to be the same as SOI,
    or even removed completely. However, advertise range was removed only 3 days before auction.
    I think by that time the damage has already been done on buyers expectation.

    Auction passed in and now agent posted a range of $1.08m-$1.13m, again with no prior discussion,
    consent or agreement from sis.

    She’s had it and wants out but is locked into a 60-day exclusive authority, another problem!!!

    Is the above a valid underquoting situation? If so, can she use that as her leverage to terminate/sack
    the agent and not pay any commission at all and go with another agent? Additionally, for the behaviour
    of the agent who just ignores vendor’s requirements & instructions, lacks transparency & openness, and
    does everything his way unilaterally without consent or agreement from vendor is just plain unethical
    and non professional. Where/Who can this guy be reported to?

    Thanks,
    FXD

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,366

    Hi FXD,
    I did a quick search and found this link that provides some guidance, including the section on “Enforcing Real Estate pricing”. It is for Vic – it may be different for other states.
    https://www.consumer.vic.gov.au/housing/buying-and-selling-property/buying-property/understanding-property-prices

    There were several other finds – to get them, I used these words as a Search key “RE agent underquoting legal?” and up they came. THe one above was first on the list, but there were several more for you to check.

    One thing I noted in there is that it is illegal to state a lower price than a seller’s reserve price IF it was made known to the agent ahead of auction day!!! I hope it gives you a direction in which to head,

    Regards,
    Benny

    Profile photo of fxdaemonfxdaemon
    Participant
    @fxdaemon
    Join Date: 2013
    Post Count: 114

    Thanks Benny will look into the link, really appreciate your help!

    Rgds,
    FXD

    Profile photo of Colin RiceColin Rice
    Participant
    @fms
    Join Date: 2011
    Post Count: 338

    Statement of info (SOI)
    stipulates same range between $1.1m – $1.2m. Don’t know why but she never thought might be an issue

    I would send a copy of the SOI to the agent via email with a “please explain” and if not satisfied with the explanation insist that the info in the SOI is congruent with the advertised price.

    May be a specific and strategic reason for the agents capers so give them a chance to explain and if not satisfied take it further referring back to the original SOI.

    Colin Rice | CDR Finance
    http://cdrfinance.com.au/
    Email Me | Phone Me

    Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

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