New legislation to create consistency and benefit buyers: RE

Date: 18 Aug 16

Changes to price quoting announced by the Government are a significant step forward  and will greatly benefit those looking to buy real estate in Victoria, the Real Estate Institute of Victoria said today.

REIV CEO Geoff White said that the changes will create a more transparent market, providing clear information to all stakeholders.

The changes include:
•    The revision of the property’s estimated selling price – if the agent receives an offer, in writing, that is higher than the current advertised or estimated price;
•    No “offers over” or “price-plus” advertising to buyers – with the selling price only provided as either a single price, or a price range (which must fall within 10 per cent of the upper and lower end);
•    Delivery of a new fact sheet for buyers, which will include recent comparable sales for a property, the median price for the suburb and, most importantly, the agent’s estimated sale price for the property.

The changes will apply to residential – rather than the rural or commercial market – auctions and private sales.

Mr White said the reforms would be effective in a variety of market conditions, and for all stakeholders in property transactions.

“A key objective of the new laws has been to ensure that they are effective in a rising or a falling market, and we believe they have delivered on this objective.

“The changes will provide consistency in pricing of property and the information provided to both vendors and buyers,” Mr White said.

Mr White said that the reforms were the result of a collaborative approach by the REIV and the Minister for Consumer Affairs

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