Real Estate News


Hello and welcome to real estate news …

In case you haven’t heard legislation has been passed in Victoria on how real estate agents market residential real estate.

 If you are a vendor of a residential property this will affect how your property will be marketed.

From May 1 2017 all estate agents selling residential properties in Victoria will have new obligations relating to:

  • The estimated selling price
  • Comparable property sales
  • Statement of information
  • Advertising prices.

Understanding the under quoting laws.

Estimated selling Range

The estimated selling price must be:

  • Reasonable and
  • Take into account three properties that are most comparable to the property for sale, unless these sales are not available.

It must also

  • Continue  to be included in the sales authority
  • Be a single price for example, $600,000 or a range of up to 10% for example, $600,000 - $660,000.

If the estimated selling price changes because it ceases to be reasonable ( for example if a comparable property sells at a higher price) an agent must:

  • Inform the seller in writing and outline the details of why the estimated selling price changed and by how much
  • Update the sales authority.

Comparable Properties

A comparable sale is a previously sold property that is of similar standard, condition and location to the property for sale.

When selecting comparable properties, agents must take into account the:

  • Standard and condition of the properties
  • Location of the properties
  • Date of properties sold
  • Guide lines issued by the Director of Consumer Affairs

If the property for sale is in the Melbourne metropolitan area, the comparable property must be within two kilometers and have been sold with the last 6 months.

If the property for sale is outside the Melbourne metropolitan area, the comparable property must be within 5 kilometers and have been sold within the last 18 months.

Statement of Information

The statement of information is an approved document that estate agents must prepare for each residential property they offer for sale.

The statement of information must be:

  • Displayed at all open for inspections
  • Included with all online advertising
  • Given to prospective purchasers within 2 business days of a request.

It must include:

  • Details of 3 most comparable properties, including the address, date of sale and sale price; or if comparable properties were not taken into account when setting the estimated selling price- a statement that there are less than 3 comparable sales in the area
  • An indicative selling price for the property.
  • This maybe a single price or a price range of up to 10% but cannot be less than:
  • The agents estimated selling price
  • The seller asking price if provided
  • The price in any written offer that was rejected by the seller because it was too low.
  • The median house or unit price for the suburb or locality, for a period of between 3 and 12 months, that is more than 6 months old.

Advertising

When marketing a property for sale agents must not use words or symbols to qualify the price or price range, such as “offers above” from, or plus.

A property cannot be advertised at a price that is less than:

  • The agents estimated selling price
  • The sellers asking price
  • The price in any written offer that was rejected by the seller because it was too low.

The price maybe advertised as a single price or a price range of no more than ten percent.

If the estimated selling price changes or the seller rejects a higher written offer, agents must update the price or price range on:

  • On line advertising within one business day
  • Other advertising as soon as possible.

For more information, you can visit the consumer affairs web site: consumer.vic.gov.au/under quoting.

Feel free to contact me with any questions…hope this information has been of some use to you.

Cheers Joseph.