It is maddening watching the Domain newspapers distort everything about property.
Real estate agents will have to disclose a home’s reserve price well before buyers attend auctions under Australian-first laws aimed at tackling rampant property underquoting in Victoria.
The fundamental change, to be announced by the Allan government on Thursday, follows this masthead’s Bidding Blind investigation, which uncovered widespread deception facing those trying to navigate the auction market.
Consumer Affairs Minister Nick Staikos said that underquoting – an illegal practice where agents deliberately advertise properties for less than their actual value to build competition – was commonplace.
And? This won’t stop the same number of people from attending an auction if they have any sense. All will still want to attend on the assumption that the property may be passed in and offer an opportunity.
Underquoting is annoying, but it does not set prices. Arguably, its primary purpose is the old trick of “kicking vendors and buyers in the ankles”.
That is, lowering price expectations so that when the price goes higher, the realtor appears the hero.
To the extent that realtors will be less formally manipulative, the reform is no bad thing. But it does nothing substantive for prices.
It is more of the usual symbolism over substance that Domain thrives upon.
Now, back to pumping immigration and prices!
