Price Guides

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The practice by unethical real estate agents to – ‘quote them low and watch it go’ could very well finally be a thing of the past – well in Queensland anyway (for starters). Governments from all political persuasions have struggled for decades to establish a best practice platform for the real estate industry.
Queensland is close to implementing the new legislation although they are struggling at the last hurdles given they are seeking that agents are not permitted to provide any price guides. The reforms have now been altered to permit agents providing a price guide on the internet.
This just keeps getting dumber and dumber given this whole process could be fixed so easily – all that’s required is for the vendors to publish their reserve price to all parties making inquiries. The prospective purchasers then make up their own minds as to what they believe the property is worth based on the published reserve price – a clean and transparent selling process.
I have always argued (successfully) that the difference between a good real estate agent and an average one is about 10% of the sale price. The difference by not quoting the agents price guide is that this figure is generally skewed to the attraction price as against the selling price which is exactly what should be the case in this day and age.
If a buyer wants to pursue a property at the vendor’s reserve price then all well and good. If on the other hand they construe that the expectations are too high then let the property run a reverse course – which is interesting as this then goes back to the respective agent’s negotiating skills. I’m not exactly sure what parts of this the agents don’t get as reserve price quoting will reward the agents with superior negotiating skills – which is exactly what vendors should be looking for.
There is a great role for public auctions in the real estate industry, just the system requires critiquing because rogue agents will always struggle with the truth. Watch this debate get very heated in coming weeks and months although rest assured there will be major changes across the board to the Australian property auction system.
Another fascinating week that had the “experts” (whatever they are) calling the end of the biggest Sydney property boom in a decade – what a load of rubbish!
To add some weight to these idiotic statements there are approximately 637 (and growing) suburbs that make-up Sydney. Yet in typical lackadaisical reporting fashion we read “dwelling values across Australia’s capital cities have recorded declines” – so they take the weighted averages over 637 suburbs in the case of Sydney to get an accurate positioning? Anyone applying this methodology is simply delusional as this in no way accurately defines real estate market trends – until such time as it is suburb by suburb this collective data is as useful as an ashtray on a motor bike.
<a href="https://www.rwm.com.au/files/2014/05/30-04-2014-1-59-49-PM.jpg"><img class="aligncenter size-full wp-image-8520" src="https://www.rwm.com.au/files/2014/05/30-04-2014-1-59-49-PM.jpg" alt="30-04-2014 1-59-49 PM" width="647" height="342"></a>
Source: Digital Finance Analytics
<a href="https://www.rwm.com.au/files/2014/05/30-04-2014-1-58-58-PM.jpg"><img class="aligncenter size-full wp-image-8521" src="https://www.rwm.com.au/files/2014/05/30-04-2014-1-58-58-PM.jpg" alt="30-04-2014 1-58-58 PM" width="664" height="361"></a>
Source: Digital Finance Analytics
The latest monthly banking statistics from APRA identify consistent lending to the end of March 2014. In February owner-occupied and investment loans were $1.231 billion and in March they came in at $1.236 billion. The ‘Big Four’ increased their market share from 84.3% to 84.4% which will have many suggesting that should there be a correction they will be in all sorts of bother.
What I would like to see is a graph showing where their respective loans were as we should remember during the global financial crisis (GFC) Mosman was tipped as having the highest delinquency rate in Australia where it was later proved it had the lowest.
As they say, be careful about calling yourself an expert. An ex is a has–been and a spurt is a drip under pressure. For some, it’s human nature to predict/promote themselves as some type of modern day Nostradamus who quite remarkably possess this innate ability to read the future.
Recently we read that in America, Dr Marc Faber is predicting that this year we will witness a 1987-type stock market crash although this time it will be much more severe. For those who have no idea what exactly happened here it is <a href="https://www.federalreserve.gov/pubs/feds/2007/200713/200713pap.pdf" target="_blank" title="Black Monday – 1987.">Black Monday – 1987.</a>
Given what transpired recently in the GFC, I would think that the vast majority are erring on the side of caution – which history has conclusively shown to be the smartest path.
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robertsimeon-hRNTwJyXkQ

Is the public auction system going – going – gone?

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GUEST OBSERVATION
According to news reports it looks like the ban on price guides for properties up for auction in Queensland will go ahead when Parliament sits in May - with one minor amendment.
Vendors and selling agents will still be able to categorise the property in a price bracket for buyers searching on real estate websites. 
How will it affect the auction climate in Queensland?  Not much - auctions aren't as popular there and price guides have always been frowned upon.  But the debate has captured the attention of the major players in Sydney and Melbourne where auctions are the sales method of choice for many. A change such as this in these markets would dramatically alter the real estate landscape and make auctions less popular - a result many in the industry don't want despite the flaws in the current process. 
<blockquote>
Underquoting is a cruel, misleading and deceptive practice that needs to be stamped out for good.
</blockquote>
This is why I believe so many industry players have been so outspoken against the proposed changes. Their main claim has been that "buyers want pricing information". Yes, they are on the right track - buyers do want pricing information - however, they have left off the most important words in that statement which I believe to be "honest and transparent". 
The Queensland government's position can be summed up as "no price guides are better than phoney ones", and I have to agree.
Underquoting, or bait advertising as it’s also known, is a cruel, misleading and deceptive practice that needs to be stamped out for good.  
However, I believe the Queensland government is set to miss the mark here. They have the opportunity to make a real change for the better with the eyes of Australia's real estate industry watching.
Instead what is proposed is a half measure that doesn't really address the lack of transparency issue.
Naturally I much prefer my idea of making it mandatory to publish auction reserve prices seven days prior to auction as I've outlined in <a href="https://www.epspropertysearch.com.au/go/eps/blog/bringing-down-the-hammer-on-dodgy-auction-price-guides" target="_self">previous blogs</a>.  I believe my proposed changes would achieve a much better outcome for both the buyers and sellers.  Further my proposed changes would more than likely make auctions more popular with buyers due to this transparency.  If they are more popular with buyers they will be more popular with sellers, so everybody wins. 
In just a few weeks my <a href="https://www.change.org/en-AU/petitions/the-honourable-stuart-ayres-mp-nsw-government-make-it-compulsory-to-advertise-auction-reserve-prices-to-stamp-out-underquoting-and-dummy-bidding" target="_blank">‘publish auction reserve prices’</a> petition has had hundreds of comments supporting the idea, but I believe it needs more support before the Minister is likely to look at the proposal - if you haven't already please take three minutes to read it and support it if you agree.   
Please let anyone you know who has recently purchased a property or who is currently searching for one know about it so they can also have their say! 
Patrick Bright is the founder of Sydney-based buyer’s agency <a href="https://%20www.epspropertysearch.com.au/" target="_blank" rel="nofollow">EPS Property Search</a>.
Patrick is the author of four best-selling real estate books known as “The Insider’s Guide to Buying Real Estate Series.”
This article first appeared on <a href="https://www.epspropertysearch.com.au/" rel="nofollow">www.epspropertysearch.com.au</a>.
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pbright-aNtgvRfvJN

Queensland's price guide bans don't go far enough, what we need is real transparency

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The proposed Queensland price guide ban is back on the radar, with a number of industry members speaking out in support of the legislation.
For those who are not aware of the potential changes, you can<a href="/news/27904-new-qld-legislation-make-agents-unable-to-provide-price-guide" target="_blank"> see the passage in the legislation that has caused the outcry in this article here</a>.
Damian Hackett, CEO of Place Estate Agents, has said that banning the price guides will not make a significant change from what is currently in place, and will improve the professionalism of the real estate industry.
In fact, said Hackett, putting a price guide on an auction is contrary to its intended purpose – to let the market determine the final value of the property.
<blockquote>
DEBATE POINT: Is putting a price guide on an auction contrary to its intended purpose?
</blockquote>
“The notion of putting a price or a price range on a property going to auction is the reverse of what the process is trying to achieve,” he said.
Director of Place, and <a href="https://www.reiq.com/about-us/board-members" target="_blank">board director of the REIQ</a>, Paul Curtain, said that many currently did not put price guides on auctions – which is the intention of the current legislation.
“The current legislation was designed to move away from price guides, but over time it has been interpreted differently – it confused people,” he said.
“If you read it a particular way it allows for a price guide to be advertised, as long as you have the vendor’s permission in writing and some agents were interpreting it in this way.”
Hackett continued by noting that vendors still do have the option of providing a price guide.
“A seller should absolutely have the right to put a price on their property, but in simple terms, if they want to do this then it should be taken to the market via a tender campaign, rather than an auction.”
<blockquote>
DEBATE POINT: Vendors can still provide price guides by opting for private treaty sales
</blockquote>
Unsurprisingly, this echoes official sentiments from the Real Estate Institute of Queensland's CEO,<a href="/news/qld/29277-queensland-auction-price-guides-the-more-info-the-better" target="_blank"> Anton Kardash, who said that other auctions go ahead without price guides</a>.
"Art, horses and motor vehicles, to name but a few, are regularly auctioned without a fixed price or a price guide because that is the very nature of auctions. The market will decide on the day of auction what it is prepared to pay for that particular asset," he said.
"It should also be highlighted that if a seller wishes to market a property with a price or using a price guide, they may do so by instructing their agent to sell via the much more popular private treaty method."
Curtain said that the changes would “tidy up” ambiguity at present, and help with the policing of real estate agents in the way they represent pricing, which in the past led to a lot of misrepresentation and complaints from disadvantaged consumers.
<blockquote>
DEBATE POINT: Currently there is ambiguity in the legislation that needs clearing up.
</blockquote>
“Agents would lead a buyer to a property on which they’d underquoted by 10 to 20% and the buyer would go the expense of getting building inspections and the like and then on auction day would realise they weren’t even in the running for the property,” he said.
“Essentially banning auction price guides is designed entirely to safeguard consumers and ensure we don’t return to those dark ages of misrepresentation. Arguments for price guides to be allowed potentially takes us back to those days, and this is something we categorically do not want.”
In fact, Curtain also pointed to other states as perpetrators, again much like the REIQ’s stance.
“It is with great pride that Queensland can say that it has largely avoided claims of misleading and deceptive conduct in relation to property price guides. Unlike in some other states where such complaints are rife, Queensland has not been subject to constant complaints of such a nature and will continue to prevent any future issues with the passing of this legislation,” said Kardash.
It appears Curtain agrees with this.
<blockquote>
DEBATE POINT: Other states are rife with underquoting, and they have price guides.
</blockquote>
“Certainly in other states underquoting is a huge problem – it has almost become the norm in states like Victoria for a price to be quoted and the property to sell above that level, sometimes significantly above, and this is only disadvantageous to the consumer,” said Curtain.
Hackett said that Place applauded the Property Occupations Bill 2013, with much of the other changes resulting in the reduction of red tape, despite the “controversy” surrounding price guides.
“Most of the members of the REIQ are supportive of the Bill as a whole, as are the majority of real estate agents, and indeed even consumers,” he said.
“The only issue that has been blown out of proportion is the section clarifying the rules surrounding auction price guides, but overall people are excited about the changes as a whole.”
Meanwhile, managing director of RE/MAX Australia, Michael Davoren, has urged the Queensland government to “stick with their plan and legislate for there to be no price indicators… despite a small number of people publicly lobbying for the opposite.”
One person publicly speaking for the other side of the argument is McGrath Estate Agents’ John McGrath, who has <a href="/news/qld/29009-queensland-auction-price-guide-ban-defies-common-sense-john-mcgrath" target="_blank">taken out full page advertisements in Queensland newspapers to argue against the proposal</a>.
"It does the people of Queensland a great disservice, in my opinion, to deny them such a fundamental right when it comes to the most important financial asset that any of us will ever own,” said McGrath.
"The banning of price guides will be a barrier to business for this great state. We should be open for business. Making it easy for others to research our property and invest in Queensland," he said.
However, despite the suggestion of a "small number" of people lobbying against the change, the REA and News Limited are also in opposition, and the <a href="/news/nsw/29164-reis-go-head-to-head-over-queensland-auction-price-guide-debate" target="_blank">Real Estate Institute of New South Wales also spoke out against the ban</a>, suggesting that there is a heavy tide of opposition being faced. Notably, an online petition prompted by News Limited has <a href="https://www.change.org/en-AU/petitions/jarrod-bleije-mp-amend-proposed-legislation-aimed-at-banning-price-guides-on-properties-going-to-auction-in-qld?recruiter=83952376&amp;utm_campaign=signature_receipt&amp;utm_medium=email&amp;utm_source=share_petition" target="_blank">achieved 1,918 signatures</a>.
Davoren said that the reality in the industry is that the topic has been debated at length, and most accept the REIQ’s position on having no price guidance.
“While I accept that real estate practitioners and commentators from other jurisdictions can express an opinion on Queensland real estate, their own systems are far from perfect with cases of over quoting and underquoting regularly brought to public and legal attention,” said Davoren.
Despite this, it appears it’s uncertain how many agents actually are underpricing.
<blockquote>
DEBATE POINT: Could providing reserve prices one week before auction be an alternative solution?
</blockquote>
“A minority of agents are over quoting to the seller but then underpricing when going to the public – there is no transparency in that,” he said.
“The Bill proposes that an agent or auctioneer can provide a comparative market analysis in writing with the written consent of the seller and at the direct request of the buyer,” he said.
“We’ve invested so much already into making our real estate industry as transparent as possible; to encourage the use of price indicators is a backward step.”
He also said that, contrary to what some have been saying, the Bill will not stop buyers from using real estate portals to find properties in their price range, with any search parameter based on the property’s price range to be seen as a “search tool only” and not taken as the agent’s pricing guide or opinion.
Another solution to the underquoting issue has been suggested through the publishing of reserve prices a week out from the auction date. An <a href="/news/nsw/29164-reis-go-head-to-head-over-queensland-auction-price-guide-debate" target="_blank">online petition for this change in New South Wales is circulating, launched by buyer’s agent Patrick Bright</a>, and has seen vocal support from SQM Research’s Louis Christopher. Bright has suggested to Property Observer that should the model be successful in New South Wales, other states may be interested to implement it.
Observer Terry Ryder, based in Queensland, has also been vocal on the issue of the Queensland price guide ban, <a href="https://www.urban.com.au/expert-insights/buying/29178-queensland-auction-price-guidance-blame-yourself" target="_blank">telling those who dislike the ban that they can only blame themselves</a>.
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jduke-EHk3XBmHkn

Queensland price guide ban garners support, with claims debate is “blown out of proportion”

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Queensland’s Property Occupations Bill was passed earlier this week, bringing a raft of changes to the state’s real estate industry.
Formerly covered under the Property Agents and Motor Deals Act (2000), the real estate industry now will work under its own set of regulations.
The way real estate is bought and sold in Queensland will change in ways that will to affect both buyers and sellers: here’s what you need to know.
<ol>
<li>
NO MORE PRICE GUIDES... The most controversial aspect of the bill was the removal of price guides for properties sold through auction. Intended to stamp out the practice of underquoting, the changes will stop agents discussing price guides with potential buyers or property reporters. The proposal was supported by the Real Estate Institute of Queensland but derided elsewhere. Groups including the Real Estate Institute of New South Wales the Real Estate Buyers Agent Association of Australia voiced their opposition to the legislative changes in recent months. It’s unclear what effect the changes will have on Queensland’s real estate market. 
</li>
<li>
…WITH SOME CAVEATS According to Attorney General and Minister for Justice Jarrod Bleijie, buyers won’t be complete in the dark when it comes to property values. The bill was amended to allow real estate agents to disclose a price guide to listing websites so buyers can still search for properties within a certain price range. However, listing websites are still unable to publish the price estimates. If a seller consents, agents can also provide “market information about a property”.  “However, the bill allows an agent, with a seller’s written consent, to give any person,which includes, for example, a buyer or a property journalist, with market information about a property through the form of a comparative market analysis. There are also numerous online sources that provide market information about properties," said Bleijie. "This information provides objective, not speculative, data to assist a buyer to work out what a property may be worth to them. This information will also assist property journalists and writers to prepare real estate profiles and editorial pieces without the need for real estate agents or auctioneers to breach provisions preventing disclosure of price guides for auction properties. "Prohibiting agents from giving a price guide indication for auction properties, or properties for sale without a price, also creates a level playing field for the industry.” It’s unclear at this stage what “market information” entails. 
</li>
<li>
COMMISSIONS Price guides aren’t the only form of disclosure to go in Queensland. Agents are now able to charge commissions even when they have a beneficial interest in a property, and will no longer have to disclose that commission to buyers. There is no cap on the commissions received, an issue which some believe may have an inflationary impact on prices. Labor MP Desley Scott said that: “It is preposterous to suggest that the commission being paid by the seller to the agent will have no impact on the buyer. It has the potential to make a significant difference in the contract price of a property. Where the contract price is distorted by a highly inflated commission, the buyer has no way of knowing what the real value of the property is. Transparency is paramount.” 
</li>
<li>
CHANGES TO LICENSES The new legislation removes the requirement for property developers and their employees to be licensed. Until now, property developers in Queensland were the only in the country who were required to hold a license. Bleijie claims that this move will reduce red tape in the industry, removing barriers to entry to the property developer market and stimulate the economy. As the Property Agents and Motor Dealers Act has now been split, those who auction real estate will carry a different license to those selling other forms of property. The changes mean that anyone who auctions real estate and other asserts will have to hold two licenses. 
</li>
<li>
USE OF LAND DISCLOSURE Under the Property Agents and Motor Dealers Act, agents had to notify a buyer if the land they were considering could not be used for residential development. That provision has been removed, meaning that sellers and agents are not required to tell a buyer, pre-contract, that the piece of land they are about to purchase cannot lawfully be developed for residential purposes. That means it's up to buyers who are considering residential development to investigate council requirements themselves before signing their contract.
</li>
</ol>
 
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jrichardson-uRX5hFdKfN

Five things to know about Queensland’s property reforms

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The proposal to ban auction price guides in Queensland, which has in part been described as a decision to help stamp out the problem of underquoting, has been slammed by the Real Estate Buyers Agents Association of Australia (REBAA) who claim that not only will this action not stop the problem, but it could also deter buyers from bidding at auction.
REBAA spokesperson Scott McGeever said that the auction process is skewed in favour of real estate agents and the vendors, and changing this law will not change the status quo.
The Queensland laws, which are expected to be passed within coming weeks, has left McGeever questioning the decisions.
“The Queensland government has had the opportunity to make a real change in favour of home buyers but instead buyers will remain in the dark and coercion will be rife,” he said.
“The allowance of web-based price guides does nothing to provide clarity for would-be buyers, many of whom are already spending thousands of dollars on building and pest inspections for properties which aren’t really within their range.”
He noted that internet price guides are just a small component of the auction process, with this proposed solution to leave buyers vulnerable to selling agents who will use this to their advantage.
“Some real estate data sites allow owners, or those who own in the local area, to change price estimates for properties listed online, allowing for manipulation to occur,” he said.
“Buyers are often already uncertain about auction environments and with either less or manipulated information at hand this could reduce their bidding confidence even further.”
REBAA is the latest body to voice their opposition to the changes, joining the ranks of the REINSW, <a href="/news/qld/29009-queensland-auction-price-guide-ban-defies-common-sense-john-mcgrath" target="_blank">John McGrath</a> and a <a href="/news/qld/29277-queensland-auction-price-guides-the-more-info-the-better" target="_blank">number of news organisations</a>, however there are still <a href="/news/30059-queensland-price-guide-ban-support-claims-blown-out-of-proportion" target="_blank">a number of those supporting the proposed changes</a>.
Another solution to the underquoting may be to publish the reserve prices prior to the auction. An <a href="/news/nsw/29164-reis-go-head-to-head-over-queensland-auction-price-guide-debate" target="_blank">online petition for this change in New South Wales is circulating, launched by buyer’s agent Patrick Bright</a>, and has seen vocal support from SQM Research’s Louis Christopher. Meanwhile, observer Terry Ryder, based in Queensland, has also been vocal on the issue of the Queensland price guide ban, <a href="https://www.urban.com.au/expert-insights/buying/29178-queensland-auction-price-guidance-blame-yourself" target="_blank">telling those who dislike the ban that they can only blame themselves</a>.
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"Coercion will be rife" under new Queensland price guide laws: REBAA

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Discussing the issue of the potential price guidance ban in Queensland, the Real Estate Institute of New South Wales president Malcolm Gunning expressed his support for a recent petition for agents to publish reserve prices a week out from auction.
The <a href="/expert-insights/buying/29808-christopher-bright-media-outlets-ignoring-underquoting-petition" target="_blank">petition, from EPS Property Search's Patrick Bright</a>, looks to increase transparency by requiring real estate agents to publish the reserve prices to the public.
Gunning told Property Observer that he doesn't support the banning of price guides in Queensland, believing that they're "trying to exonerate the responsibility of under or over quoting". Just today, Property Observer reported that the Real Estate Buyers Association of Australia believe that <a href="/expert-insights/buying/30778-coercion-will-be-rife-under-new-queensland-price-guide-laws-rebaa" target="_blank">coercion will be rife if the changes go through</a>.
With Brisbane labelled one of the upcoming investment hotspots, he also expressed concern for buyers in New South Wales and other states and territories who would be heading to the south-east Queensland suburbs for purchasing, unaware of what prices could be attained, where a local might be more familiar.
"In NSW, the institute uspports the agent giving an indication. Agents are dumb when they [underquote]and have no confidence in their ability," said Gunning.
In fact, he pointed to education being the real issue for New South Wales instances of underquoting.
"We think the problem is that in New South Wales the level of entry into real estate is the lowest in Australia and we think that [when agents underquote it is] reflective of agents not being confident in themselves."
He noted that in the last 18 months it has been difficult for agents, particularly those with little confidence in appraising a property, to provide an accurate price guide, with buyers getting desperate to purchase and chasing the properties beyond market expectations.
However, he said, the agent should be able to give a purchaser an indication of the vendors expectation, and perhaps mention the level of competition. If a buyer wants to compete at auction with other bidders, then this is their decision, however they should not be competing with a reserve price set higher than expectation.
Gunning expressed his support of John McGrath, who has been actively against removing the price guidance.
Despite the opposition, however, it might go through.
"The REIQ are supporting it, and they’re a strong organisation, so I think the government might pass it," he said.
He also told Property Observer that he has recently spoken with the Office of Fair Trading who have said that underquoting is not as high on their agenda as looking to knock out dodgy Registered Training Organisations.
"There are a lot of training organisations offering sub-standard training, we’re trying to lift the standard of the industry. We’re getting people coming in with just a week of training," he said.
He noted that the better agents who do not fall into underquoting tend to be those with higher levels of education.
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REINSW's Malcolm Gunning supports early publishing of reserve prices

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In Parliament last night, the controversial Queensland property bill that has seen big names in real estate, such as John McGrath, arguing against the changes, passed.
The property reforms, announced in Attorney-General Jarrod Bleijie’s release, noting them an “easy sell for Queensland” have split the Property Agents and Motor Dealers Acts (2000) into separate industry-specific bills to reduce red tape for Queenslanders. Bleijie, calling it a “win-win for everyone” and noting that it simplifies stifling regulations, listed the following key changes.
<ul>
<li>Removing the requirement for agents to disclose to a buyer the commission the agent is receiving from the seller  </li>
<li>Deregulating agents’ commissions aligning Queensland with other states  </li>
<li>Maintaining the existing cooling off period of five days  </li>
<li>Remove the requirement for property developers and their employees to be licensed  </li>
<li>Streamlining the claim fund process to reduce the time taken to assess, decide and pay claims to consumers  </li>
<li>Reducing the number of government forms and incorporate warning statements into contracts  </li>
<li>Providing a simpler licencing framework for real estate agents, resident letting agents and auctioneers  </li>
<li>Extending the statutory limit on lengths of appointments for a sole or exclusive agency from 60 days to 90 days  </li>
<li>Reducing the number of forms requires for motor vehicle transactions  </li>
<li>Providing a system for regulating debt collectors and their employees to protect consumers against undesirable practices associated with debt collection activities </li>
</ul>
However, it was also agreed to, with some amendments, that price guides would not be allowed.
The Parliament transcript notes that the ALP’s Annastacia Palaszczuk noted to put it on the record that clause 214 prohibits an auctioneer from disclosing a price guide for an offered property.
“It is good to see that the Attorney-General was prepared to listen to the voice of reason in relation to this matter. The opposition to this proposal was enormous and the groundswell of public opinion was about to drown the government on this issue. This amendment allows an auctioneer to give information about price or price range to an electronic listings provider to establish search criteria for listing the property for sale,” she said.
“However, it still prohibits any price guide being given for a property that is to be auctioned. The opposition does not support this ban and we do not think this amendment goes far enough to alleviate the concerns that have been expressed.”
An addition to the Bill had been to clarify that an auctioneer would not contravene the section if, during the auction, the reserve price is reached or exceeded and the auctioneer tells those at the auction that the price has been met.
An amendment was then made by Bleijie to include the following in clause 216:
A real estate agent does not contravene subsection (2) (c) or (3) (b) only because a price or price range for the property is disclosed by the real estate agent to an electronic listings provider to establish search criteria for listing the property for sale on the provider’s website or other electronic medium. (3B) However, subsection (3A) applies only if the real estate agent is satisfied on reasonable grounds that— (a) the electronic listings provider will list the property for sale on the website without disclosing the price or price range; and (b) the listing will include any statement prescribed under a regulation
The bill was passed with amendment last night.
The bill was created <a href="/news/qld/25360-august-26-observer-anton-kardash" target="_blank">heavily in conjunction with the Real Estate Institute of Queensland's Anton Kardash</a> and has had <a href="/news/qld/29009-queensland-auction-price-guide-ban-defies-common-sense-john-mcgrath" target="_blank">John McGrath voicing his opposition loudly, arguing that the change defies common sense.</a>
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Controversial Queensland property bill passes despite “groundswell” against price ban

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CEO of Ray White Surfers Paradise, Andrew Bell, has said that he welcomes the legislation changes in Queensland that will stop price guides being put on auction properties.
Bell said that the state government were right to stamp out the flawed practice, saying that setting price guides did not serve the best interests of buyers.
“Auctions are meant to be presented based on a free market system and this has been recognised by the state government under these legislative changes,” he said.
“People have missed out on properties because of misleading price guides under systems which allow price guides, such as in the southern states where there is a great deal of consumer dissatisfaction.”
Despite this, Consumer Affairs Victoria has recently been in record noting that there are few complaints, while others cannot agree on the severity of the problem in New South Wales or Victoria.
He said that price guides are often not reflective of a property’s selling range.
An amendment does, however, allow electronic listings provider to be given price range information to determine a search criteria – however, only if they are “satisfied” the provider won’t disclose this information.
{module Do you think the changes should be rolled out to other states and territories?}
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Ray White Surfers Paradise’s Andrew Bell welcomes Queensland legislation changes

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The much discussed practice of underquoting, or bait pricing, has attracted the interest of Consumer Affairs Victoria, who have announced they will be keeping a close eye on the property market, and specifically auctions, this autumn season.
The practice of underquoting, much-discussed on Property Observer, has director of Consumer Affairs Victoria Claire Noone set to catch out real estate agents misleading prospective buyers. This is timely, considering the potential Queensland change to legislation to stop all price guides at auction in <a href="/news/qld/29277-queensland-auction-price-guides-the-more-info-the-better" target="_blank">a bid to solve the issue of underquoting that the REIQ claims is rampant in the auction-heavy capitals</a>.
"In this peak auction period, we are gathering market intelligence through online monitoring and other data collection methods," Noone said. 
"We will be watching for any misconduct during the buying and selling process - from the moment a property is advertised to when deposits are paid and held in trust accounts.”
She also expressed that staff would be attending auctions to ensure they are “conducted according to auction rules”. Property Observer welcomes this attention into the issue, particularly surrounding the announced attention being paid to indicators of misleading price advertising and campaigns.
However, Noone also urged prospective buyers to ready themselves with auction rules, including price advertising and underquoting, prior to attending auction so that they can be prepared.
"Comparing the initial advertised price with the sale price is not evidence of underquoting," Noone explained. 
"Underquoting is when an agent misleads a prospective buyer about the likely selling price of a property for sale.”
She explained that examples of this included when a property is advertised or quoted to a prospective buyer at a price lower than the seller’s asking price or auction reserve price, the agent’s estimate of the selling price or a genuine offer or expression of interest.
Property Observer recently attended a <a href="finding/29729-agent-underquoting-will-not-always-help-buyers-get-the-price-they-want" target="_blank">Sydney auction that was potentially a case of underquoting</a>, with a reserve price set some $200,000 above the price guide.
Noone also reminded buyers that, at auction, you will not be able to make a contract subject to conditions and that there is no cooling off period.
Underquoting is a regularly debated topic. Recently, <a href="/expert-insights/investing/27011-underquoting-the-auction-systems-necessary-evil" target="_blank">observer Mark Armstrong referred to is as the auction system’s “necessary evil”</a>, meanwhile a petition has been started by buyer’s agent Patrick Bright for the <a href="/news/29454-online-petition-for-mandatory-reserve-price-publishing-launched" target="_blank">mandatory publishing of reserve prices</a>.
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Misleading auction price advertising to be targeted by Consumer Affairs Victoria

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"It’s been almost impossible to give accurate price guidance when potential purchasers are prepared to fight and bid aggressively, resulting in some delighted vendors," the Ray White chairman Brian White recently noted.
The admission accompanied the Ray White Group achieving $3.2 billion in March sales nationally.
"How wise are vendors to have embraced auction in this cycle," <a href="https://www.raywhitegroup.com/white-paper/" target="_blank">he said in his latest monthly advisory</a>, The White Paper.
"All of the talk in Australia is about Sydney.
"But it went much broader than Sydney," he said earlier this month.
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"It’s always a good sign for Australia when New South Wales is powering.
"It becomes a catalyst for confidence across the nation," he said. 
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"Ray White in Victoria set a new record reflecting a dramatically improved Melbourne market," he said.
He pinpointed a number of offices that "showed just how big some real estate agencies can become.
"For example, <a href="https://rwdbgroup.com/" style="line-height: 1.3em;">Double Bay</a> did $120 million, <a href="https://rwremuera.co.nz/" style="line-height: 1.3em;">Remuera</a> in Auckland did $55 million, <a href="https://raywhitegw.com/" style="line-height: 1.3em;">Glen Waverley</a> in Melbourne also did close to $50 million.
"All massive increases over any previous level."
Last November he noted New South Wales was the standout with its first $1billion month, adding the experience at Ray White Balmain where Sam Kelso and Emily Sim opened a new business and were profitable in the first year, was "inspiring." 
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"We’re seeing record auction clearance rates," he wrote in late 2013.
"Property prices are increasing in most markets, particularly the big cities. 
"The highest percentage of property is now being taken to auction. 
"Confidence to upgrade one’s home is being backed by enthusiasm of a cycle a-go.
"Sooner or later, the cycle will lose intensity," he acknowledged. 
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Mr White likes to call markets as accurately as possible, and in the past weaker markets once noted "There's a terrible statistic in the industry that shows about half of sales are made at a price that is less than the owner was previously offered."
And he had also advised the only softness was the confidence hit that resource regions in Australia are now experiencing. 
"On a bearish note, prices are dropping in resource areas.
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"A reminder of how closely linked property prices are to economic activity," he said. 
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Brian White has said the continued focus on China had resulted in the company being recently invited to present at a key investment conference being held by CCPIT – the arm of the Chinese Government promoting investment within and outside of China.  
But adding that while project sales continued at remarkable levels - "what would this market look like if it no longer had Asian interest?" 
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