In what has been described as a ‘shocking abuse of transparency’, the Victorian Government has announced that real estate agents will soon be required to publish auction reserve prices at least seven days before an auction, an act industry leaders say could completely destroy the long-cherished tradition of telling buyers “the vendor hasn’t decided yet”.
The Real Estate Institute of Victoria (REIV) slammed the reform as ‘a dangerous precedent’, warning that forcing agents to reveal the reserve would “unfairly punish agents who rely on deception to make a living”.
The Institute also claimed underquoting was an ancient art form that needed to be safeguarded. “This is about protecting our cultural heritage,” an REIV spokesperson said.
“Underquoting is a skill that is passed down through generations. If this new law is implemented, how will young agents learn how to say ‘$1.2 million plus’ while knowing the reserve is actually equivalent to the GDP of a small European nation?”
Buyers expressed mixed feelings about the change. “I suppose it’ll be nice to know what the property is actually expected to sell for. But I’ll miss the thrill of being told it’s ‘in your range’ right up until someone pays $700k more. It’s like being conned by a very polite magician,” buyer Jess McKenzie said.
The REIV says it will continue lobbying against what it calls ‘unnecessary honesty mandates’. But some real estate groups have already accepted the inevitable. “We’ve enrolled our agents in an “Introduction to Numbers And What They Mean” course, starting next week,” one agency said.
