PHOTO: 7NEWS
Sydney’s already sky-high property prices are facing new scrutiny as unethical practices by some real estate agents come to light. A recent 7NEWS investigation has exposed alarming trends in the industry, with a record number of complaints being lodged against agents employing questionable sales tactics.
The revelations paint a grim picture of an industry where manipulation, misinformation, and pressure-selling are becoming alarmingly common. These tactics not only jeopardize trust in the real estate sector but may also be contributing to the overheated Sydney property market, making it even more inaccessible for average buyers.
Tactics Fueling Complaints
Among the practices uncovered are:
- Underquoting: This involves advertising properties at prices well below their expected selling range to lure more potential buyers. While technically illegal under New South Wales law, underquoting continues to flourish, frustrating buyers who often find themselves priced out of auctions before they even begin.
- Pressure Selling: Some agents reportedly apply undue pressure on buyers to make snap decisions, using tactics such as fabricated “phantom buyers” or exaggerated interest in the property to drive up bids.
- Misleading Advertising: Properties are being marketed with descriptions that misrepresent their condition or potential, leaving buyers disappointed and out of pocket after inspections or purchases.
- Omission of Key Information: Agents have been accused of failing to disclose vital details about properties, such as structural issues, zoning restrictions, or upcoming developments that could negatively affect value.
The Rise in Complaints
Data from the Office of Fair Trading shows a record number of complaints filed against real estate agents in 2024, a trend that has been steadily rising over the past decade. Industry watchdogs attribute this increase to both the intense competition in Sydney’s housing market and the lack of stringent enforcement mechanisms to deter unethical behavior.
Impact on Buyers and the Market
The fallout from these dubious tactics is twofold. First, it exacerbates buyer stress and disillusionment, as many potential homeowners are drawn into bidding wars they can’t afford. Second, it artificially inflates property values, keeping the market out of reach for first-time buyers and perpetuating Sydney’s affordability crisis.
“This behavior creates a vicious cycle,” says consumer advocate Sarah Bentley. “Buyers feel forced to overpay, which sets a precedent for the next sale. It’s a lose-lose situation for everyone except the agents.”
Industry Response
The Real Estate Institute of New South Wales (REINSW) has condemned such practices, urging agents to adhere to the industry’s code of ethics. However, critics argue that self-regulation is insufficient and are calling for tougher penalties, more frequent audits, and greater transparency in sales processes.
What’s Next?
The 7NEWS investigation has sparked renewed calls for government intervention. Proposed measures include mandatory recording of all offers, stricter penalties for underquoting, and a centralized complaints system to better track repeat offenders.
For now, buyers are being urged to remain vigilant, conduct thorough research, and seek independent advice before entering the market.
As Sydney continues to grapple with its housing crisis, the spotlight is now firmly on the real estate industry to clean up its act—or face the consequences of continued public and governmental scrutiny.
What are your thoughts on these findings? Have you experienced unethical practices in the property market? Share your story with us.
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