‘Chasing rainbows’: Underquoting complaints surge

PHOTO: Harry Mullins tried to buy a home that was underquoted, wasting time and money on something he could not afford. CREDIT: SIMON SCHLUTER

Harry Mullins was trying to buy a home, and thought he was in with a chance.

The real estate agent said the vendors wanted $649,000, well within Mr Mullins’ budget, so he paid for a building inspection and turned up to bid at auction.

But it turned out the vendors wanted much more than $649,000 and, when bidding reached $700,000, the property passed in.

Underquoting is in the crosshairs of a fresh Victorian government review that will also examine conduct within the real estate industry.

‘Blight on the industry’: Victorian property underquoting laws set for review

The practice can waste buyers’ time, money and opportunities as they chase after homes with a sticker price they can afford, but which sell for much more on auction day.

Underquoting can occur in Victoria when a property is advertised at a price that is less than the estimated selling price, is less than the seller’s asking price, or has already been rejected by the seller. But it is hard to prove.