Previously known as “The Property Planner, Buyer and Professor”
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Show Notes – Underquoting
In this week’s episode, the Property Trio tackle a serious issue… Underquoting.
It frustrates buyers, skews listing information and undermines trust.
What Underquoting Actually Is
When an agent knowingly markets a property below their genuine selling expectation to lure buyer competition.
They call out the emotional and financial cost: wasted weekends, building reports and heartbreak.
Markets can surprise, but habitual low quoting is often a deliberate strategy.
Why It Happens
The Trio explore the psychology: “Quote it low and watch it go.”
Buyers think they’ve found a bargain, get emotionally invested and bid beyond budget.
The system often rewards this behaviour and with penalties so small they’re treated as a marketing cost, there’s little deterrent.
Spotting the Red Flags
The Trio share tell-tale signs:
- Unrealistic price guides versus recent sales
- Poorly chosen “comparable” properties
- Agents pushing back on early offers or step-quoting higher near auction
- Vendors’ reserves far above quoted ranges
If a particular agency always sells far above their guide, it’s not coincidence, it’s culture.
How Buyers Can Protect Themselves
The Trio share practical tools to empower buyers: focus on sale results, ask clear questions about comparable sales and keep emotions in check when setting your ceiling.
Budget for due diligence and apply it with strategy, not sentiment.
Fixing the System
The Trio discuss Victoria’s “Statement of Information” system and its limits, noting regulators lack resources to enforce it.
Together, they propose meaningful changes:
- Larger, tiered penalties tied to property value to truly deter misconduct
- Mandatory digital audit trails tracking buyer feedback and agent communications
- Public access to initial listing appraisals shared with vendors
- Automatic public guide adjustments when vendor expectations shift
Buyers deserve trust and transparency and technology makes it achievable.
Gold Nuggets
Cate Bakos’s gold nugget: Cate advises against relying on CMA’s (Comparative Market Analysis). While they can be useful for looking at the comparable sales, the algorithms themselves aren’t reliable.
Mike Mortlock’s gold nugget:”If you’re not going to spend more time researching your property purchase than what you’d spend on your holiday, you should consider using a buyer’s agent”.
Dave Johnston’s gold nugget: Dave talks about the responsibility that rests on the buyer when it comes to understanding the right price to pay. “Control the controllables!”
Resources:
- Ep. 77 Understanding the real estate agent behaviours that buyers don’t like
- Ep. 117 Understanding the real estate agent behaviours that buyers don’t like – Part 2
- Ep. 133 Purchasing laws in each state – Part 2: The problems with underquoting and how to solve it. When and why vendor bids are made?
- Ep. 132 Purchasing laws in each state – Part 1: When is a sale legally binding? Cooling off periods. Contract conditions and when to use them
- Ep. 268 Demystifying Auction Campaigns – Navigating Underquoting, How Agents Attract Buyers, Pricing Tactics and Assessing Buyer Interest
- Ep. 269 Auction Day Drama – Setting Reserves, Mastering Your Strategy, Handling Final Week Setbacks, Auction Day Pressures & Preparing for Success
