Minister suggests “name and shame” list for underquoting agents

Last year, 95 real estate agents were fined for underquoting. But the penalty they copped was a drop in the ocean.

Real estate agents caught illegally underquoting on auction guides are only copping a paltry fine of $2,200, with the Minister responsible now conceding he will consider a “name and shame” register to stamp out the practice.

While the maximum punishment for illegal underquoting is $22,000, The Saturday Telegraph can reveal that the 95 agents fined for wasting buyers’ time and money in 2024 only paid a fraction of the toughest penalty.

It is unlawful for agents to make a “price representation” for a residential property that is “lower than the agent’s estimated selling price (ESP) as listed in the agency agreement,” a spokesman for Fair Trading Minister Anoulack Chanthivong said.

Minister for Indusrty and Trade Anoulack Chanthivong speaks during Question Time in NSW Legislative Assembly. Picture: NewsWire / John Appleyard

A Fair Trading spokesman said the agency received 265 complaints alleging underquoting last year, and issued 95 fines worth more than $207,000.

Of the fines that had been finalised as of last month, the maximum penalty imposed was $2,200. One agent was fined just $1,100.

Data from property tracking website Spachus suggests the practice of underquoting - where agents give price guides dramatically lower than a property’s expected sales price - is rife within the industry.

The Spachus data reveals that in 2024, 890 properties in Sydney suburbs sold for more than 20 per cent over the initial listing price.

According to the data, a Fairfield West property ended up selling for almost 55 per cent more than its initial listing price in May last year.

890 properties in Sydney suburbs sold for more than 20 per cent over the initial listing price.

The home was initially listed with a guide of $900,000, but sold for $1,392,000, Spachus said.

Other homes sold for more than 40 per cent over their initial guide.

In Yagoona, a home was listed at $725,000 but sold at auction for $1,030,000 in May.

A three-bedroom freestanding home in Belmore was initially listed at $1m, before being sold at auction for $1.4m.

The Telegraph is not suggesting the agents for these properties broke the law.

Opposition Fair Trading spokesman Tim James accused the Minister of having “no plan to tackle underquoting or strengthen penalties to end this unfair and deceptive practice”.

Mr Chanthivong said the government is on an “ongoing journey of reform,” conceding that naming and shaming agents fined for illegal underquoting could help stamp out the practice.

Identifying those breaking the law could be “part of the solution,” Mr Chanthivong told the Telegraph.

He said the government needed to make the system “more transparent (by) giving buyers more information about those who are doing the wrong thing”.

One first homebuyer, too scared to be identified for fear of backlash from real estate agents, said it has been “infuriating” to attend auctions where the guide price was nowhere near the reserve, or sales price.

“It’s infuriating and emotionally devastating,” she said.

“It’s not just the time, it’s the money you spend on contract reviews and building reports.”

Originally published as Minister suggests “name and shame” list for underquoting agents