Auction price guide bans the most ludicrous step I've seen in real estate

GUEST OBSERVATION

The banning of Queensland auction price discussions and guides is one of the most ludicrous, retrograde steps in real estate I’ve seen in 30 years.  

I’m still unsure as to who the REIQ and government believe it is benefiting. It appears to me to be detrimental for buyers, sellers and agents all in one.  Nobody from the REIQ or government has been able to give me a credible answer as to why they have brought this in.  

Ask yourself as a buyer of real estate if you think it will assist you to purchase property by not allowing agents to discuss a property’s price with you?

In an age of transparency and information it is the only jurisdiction on planet earth that bans agents and buyers from having conversations about the price of a property.  Maybe the rest of the world is wrong and the Queensland state government is right?

Until the new legislation comes into practice the good people of Queensland will not be impacted. In fact most have no idea of the proposal yet and will find out over the next few weeks as it becomes new law.

It is quite likely that a number of sellers will choose alternate methods of sale due to the new legislation and unfortunately cost themselves potentially significant profit on the sale of their property in doing so.

Auction is the most effective means of selling property in the world today when done well.  The most important thing for buyers is to be able to quickly and efficiently understand the likely selling range so they can determine whether to pursue the property.  

If they can’t easily determine a realistic selling range many will just move on to the next property.  People don’t have the time or desire to waste energy pursuing a property if they can’t get access to the price range.

I fought hard to retain the seller’s right to provide an indicative price to the buyers when they auction but for some unfathomable reason the government felt it was important to keep the buyers in the dark.

John McGrath is CEO of McGrath Estate Agents.