Heated Debate on Underquoting: What’s Legal, What’s Not | Tim McKibbin, CEO of REINSW
Underquoting in real estate remains a persistent challenge despite years of legislative attempts to address it, with the REINSW CEO, Tim McKibbin, joining John McGrath and Tom Panos to unpack the legal and ethical dimensions of property price guides. The discussion explores whether underquoting actually benefits vendors or merely creates disappointed buyers who waste time and money.
• The offence of underquoting is representing a price that's less than the agent's estimated selling price
• Agents must work within a maximum 10% price range when quoting to buyers
• If a vendor rejects an offer, the quoted price cannot be lower than the rejected offer
• Agents can adjust price guides during campaigns as market feedback comes in
• The obligation to represent accurate pricing rests with the agent, not the vendor
• Poor industry education contributes to pricing issues with 80% churn rate in NSW real estate
• Serial underquoters damage the industry's reputation and create emotional distress for buyers
• Technology may play a role in monitoring compliance in future regulatory approaches
• Transparency and integrity are essential for rebuilding trust with the public