PHOTO: Tori Huxtable and Tamsin Lapointe launched Auction Snitch to take on some of the most frustrating tactics employed by real estate agents.
Two mothers have initiated a confrontation with the real estate sector by creating an application that disrupts some of the most disliked strategies employed by selling agents, providing consumers with an advantage.
In August, Sydney-based entrepreneurs Tori Huxtable and Tamsin Lapointe introduced Auction Snitch, revealing valuable yet often concealed information about the Sydney property market. Due to a positive response from users, they now plan to launch the app nationwide.
Auction Snitch addresses three common frustrations faced by those searching for a new home: underquoting practices, the prevalent omission of price listings, and the tendency to keep auction results confidential.
The app operates on a crowdsourcing principle, allowing users to anonymously report on a property listing’s price guides, sale prices, and auction outcomes. This information is typically guarded by agents to compel potential buyers to contact them and share their details for their databases.
Users can ‘snitch’ on a listing and provide intel they’ve gathered for the benefit of others.
“Auction Snitch puts an end to the secrecy,” stated Ms. Lapointe.
The Governance Institute of Australia Ethics Index highlights real estate agents as the least trusted profession in the country, with consumers perceiving a lack of ethics in their practices.
A common tactic of real estate agents is to not provide any pricing information. Picture: Getty
A widespread but unethical approach
Underquoting occurs when an agent knowingly advertises a property for an unrealistically low price or range, violating regulations in most states and carrying fines. Despite its illegality, underquoting persists due to existing loopholes.
Auction Snitch aims to enhance transparency regarding a property’s guide price and actual selling price, enabling users to discern ethical agents from those engaging in questionable practices.
“It’s astonishing that auction results, witnessed by many, can remain a secret to those not present,” remarked Ms. Huxtable. “Auction Snitch changes that.”
Users gain access to crowdsourced information on a sales campaign’s history, providing insights into agents’ reliability.
Quick and simple access to auction results allows buyers to better understand local market trends.
Uncertain pricing poses challenges
Many homebuyers express frustration with encountering properties that meet their needs but lack price information. Auction Snitch addresses this concern by leveraging crowdsourcing to enhance market transparency.
Buyers typically spend nine months searching for a property, often viewing numerous listings without price details. Even when contacting agents for clarification, buyers are often met with vague responses or claims of waiting for “market feedback.”
Lack of pricing information forces buyers to attend auctions without certainty, potentially wasting time and money. Auction Snitch aims to empower buyers by providing clear insights into price ranges, saving them expenses on reports and fees.
Property portals like realestate.com.au have reportedly urged realtors to be more transparent, recognizing that 72% of buyers skip listings without price guides.
Positive industry reception
Despite being involved in real estate herself in Sydney’s North Shore, Ms. Huxtable asserts that Auction Snitch benefits both buyers and sellers. Sellers gain a more realistic understanding of recent sales results, aiding them in determining their property’s true value in the current market.
Buyers skipping listings without price guides pose a risk to potential market reach, with 72% expressing a preference for listings with pricing information.
Feedback from the real estate industry to the Auction Snitch launch has been overwhelmingly positive, as the app aids agents in correctly pricing properties and providing accurate guides, leveraging the collective power of individuals actively involved in property transactions.
SOURCE: NEWS.COM.AU