Introduced in December 2014, the law aims to stop unscrupulous agents underquoting the likely sale price of a property before auction. This is intended to protect unwitting buyers. Supporters of the ban argue it has enhanced buyer protection. On the other side of the fence, some critics even suggest the ban has subdued Brisbane house prices.
While well-intentioned, a common challenge with the legislation is that buyers still ask for a price guide. “The legislation means we’re not able to legally indicate a price for a property going to auction,” Watt Realty CEO Justin Watt explains.
“But consumers really want a price indication, so it’s quite challenging. There are positives and negatives.” So how can buyers know if their bid is likely to be in the ballpark?
Justin offers the following tips.
- Get an independent valuation of the property
- Talk to your agent about the local market conditions
- Refine your search parameters on realestate.com.au
On the last point, Justin explains: “Every property on realestate.com.au must be entered with a price range, so you can refine your search parameters to determine this range though it may be quite broad.”