Sydney Morning Herald 22 August. 2015.
In response to the real estate boom in Sydney, home buyers would not have to pay for pre-purchase reports. NSW Fair Trading, Minister for Better Regulation, Victor Dominello in an interview with Fairfax Media, also signalled a crackdown on property spruikers and confirmed the government would shortly legislate to address underquoting by real estate agents.
Regarding the pre-purchase inspections Mr Dominello says it can be a very costly exercise when many buyers needs to have four or five inspections on prospective houses they wish to purchase and on top of this, with underquoting, the buyer may not even be in the market the for particular house they are intending to but.
One option is requiring provision of a standard inspection report as a condition of selling a home. While this would be a new cost to the seller, Mr Dominello argued that “it’s a one off impost”.
Mr Dominello said he expected legislation to increase the penalties for underquoting – an election promise – to be introduced within six weeks.
A good case in point with a client I have at the moment was when we inspected a real estate property in the Southern Highlands, listed as offers over $559,000 but when we put in our offer of $566,000 we were told the vendor wouldn’t sell under $600,000. If the house had been listed at $600,000 we would not have even taken the time to inspect the property as $600,000 or even a little under wasn’t in our price range. It was very disappointing for my client, and her young daughter, (who had picked out her bedroom and planned her ballet studio in the garage). Underquoting costs the buyer money, stress and heartache and it will be a welcome relief to have the underquoting by some agents addressed.