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24 Victorian estate agents have been issued formal warnings following recent reviews that resulted in 13 ongoing investigations into underquoting in a handful of agencies state-wide. 

“Consumer Affairs Victoria is determined to level the playing field for Victorian home buyers,” Consumer Affairs Victoria director Simon Cohen said.

In October, a Melbourne-based Hocking Stuart agency was ordered to pay $330,000 for what was described as “serious” underquoting. 

The Victorian Parliament has passed legislation that forces agents to provide increased context around how they arrived at an estimated sale price, which includes giving a minimum of three comparable sales as a reference point for quoting the estimated price. 

A Consumer Affairs Victoria survey conducted as part of its year-long review into real estate underquoting revealed that a quarter of the properties sold for between 10-20% above their advertised estimated price. 

After reviewing 200 Victorian properties from first listing to sale over a 12-month period, Taskforce Vesta discovered that 63% sold for above the estimated price. 

Around 30% of properties sold for between 0.1 and 10% above the estimated price; 26% sold for between 10.1-19.9% above the estimated price; and 7% sold for 20% or more above the estimated price.

According to SmartCompany, it was these statistics that prompted the consumer watchdog to review 1400 files at 34 real estate agents Victoria-wide. 

Thanks to a legacy of strong moral standing and ethical agency practices, Pennisi Real Estate will never be involved in such a scandal and we send our sympathies to the trusting clients who were affected.

In line with current legislative practices, we ensure all our clients receive estimated sale prices based on recent market activity. 

Are you looking to sell your Victorian home and feeling confused about which Melbourne estate agent you can trust? 

Give us a call on (03) 9379 5616 and let us talk you through our GUARANTEE.