Fines set for Victorian real estate agents who underquote properties

Authorities will continue their strong crackdown on dodgy agents who flout underquoting laws, as the traditionally busy spring selling season ramps up.

Rogue real estate agencies have been slapped with $2.7 million in fines as they continue to flout Victoria’s underquoting laws.

Consumer Affairs Victoria is cracking down on dodgy agents with 39 on-the-spot fines handed out — totalling almost $200,000 — last financial year.

This is on top of court action and voluntary undertakings for 11 serial offenders, who have been caught underquoting on multiple occasions, with fines and court costs totalling $2,540,000.

The largest fine in Victoria was $880,000, issued against Fletcher and Parker Balwyn for underquoting on 22 properties from Kew to Forest Hill.

The news comes as Melbourne’s auction volume has crept up in recent weeks, as the traditionally busy spring selling season approaching.

Consumer Affairs Victoria Minister Marlene Kairouz said underquoting was harmful to buyers and sellers.

CoreLogic expects 720 Melbourne homes to go under the hammer this week.

Reservoir will be the city’s busiest suburb, with 13 auctions scheduled.

Frankston and Mt Waverley are also tipped to have 12 each and Bentleigh East, Doncaster East and Richmond, 11 each.

Last week’s 662 auctions generated a 77 per cent clearance rate.

The figure has now held above 70 per cent for six of the past seven weeks.

Since 2015, Consumer Affairs Victoria has taken court action and accepted enforceable undertakings from 11 real estate agencies, with Fletcher and Parker Balwyn one of the worst offenders.

Melbourne’s auction volume has crept up in recent weeks, as the traditionally busy spring selling season approaching.

In one case, a three-bedroom house in Dorene Court, Vermont South, was marketed at $700,000 below its final $1.6 million selling price. The court heard one of Fletcher’s vendors was told “if we tell a buyer what you actually want, it destroys the campaign”.

Court documents also revealed the agency’s “quote of the week” from a sales meeting was “market the f--- out of it and then underquote the s--- out of it”.

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Consumer Affairs Victoria Minister Marlene Kairouz said underquoting was harmful to buyers and sellers.

“These fines send a strong message to all estate agents that underquoting won’t be tolerated,” she said.

Real Estate Institute of Victoria chief Gil King said the changes were bringing transparency to the industry.

“The underquoting crackdown has helped give home buyers a better chance to buy a home without second-guessing the advertised price,” he said.

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