The laws should act as a guide for other States looking to clamp down on the practice of under quoting (bait pricing).
The agents favoured trick of telling the owners a high price and the buyers a low price, with the hope of engineering a sale in the middle, will be fully exposed under these new laws.
In a subtle but effective change to the law, agents must now increase the price guide if an offer is made above the agent’s price guide. The agent is unable to continue marketing the property at a lower price that what has already been offered
We have already seen many instances where price guides have been increased mid-campaign to be in line with the offers and buyer feedback. This ensures that those buyers who are unable to win the bidding, do not enter the bidding on false pretences.
As a result of these laws, you can expect fewer bidders at each auction, as the buyers who are unable to win the bidding are priced out of the bidding prior to the auction.