Major real estate firm accused of underquoting hundreds of thousands of dollars
A star trio of real estate agents and a firm are accused of underpricing properties in Melbourne’s east by hundreds of thousands of dollars; It’s what the consumer watchdog has called one of the most serious cases since the underpricing task force was launched.
Consumer Affairs Victoria (CAV) has launched Federal Court proceedings against Harcourts Judd White for alleged breaches of property sales laws, with CAV managing director Nicole Rich also claiming at a press conference on Saturday that one or more representatives told a seller that underpricing was “pure strategy”.
CAV confirmed the three agents were Andrew Dimashki, Anna Du and Julie Wells. All three are still selling properties, Rich confirmed, including some inspections scheduled for Saturday.
In a press release, CAV alleged that the agency and three agency representatives “understated the expected sales price of 11 properties and acted deceptively throughout their respective sales campaigns.”
Rich later told reporters that 11 properties had been sold in the Glen Waverley and Wheelers Hill areas.
“We are seeing discrepancies of several hundred thousand dollars in some of these cases,” he said.
“We submit that it is very, very clear from the evidence that the agency and agents were advertising at significantly below what the market would sell for.
“In many of these cases, they were contacted by potential buyers asking if the seller would accept much higher offers. They would say no and would not change the advertised price.”
“In some cases, we have evidence such as text messages where they commented on how high the price would go or, in one case, the seller told his family not to worry about the low advertised price because it was ‘pure strategy’.”
The allegations relate to three agents working at Harcourts Judd White. Wells currently works for another firm, Buxton. CAV did not make any allegation of undercitation against Buxton.
Dimashki, Du and Wells were contacted for comment. While Du and Wells declined to comment, Dimashki has not yet responded to the allegations. Ray White, Harcourts and Buxton were also contacted.
The allegations came after the turning point Tender Blind investigation Last year this imprint revealed that underpricing is common in Melbourne and potential home buyers often fail to trust the price guide provided.
According to data from Bidding Blind, Harcourts Judd White was rated as one of the worst agencies selling properties above the advertised range; It was observed that 80 percent of the 66 properties tracked sold above the range. Properties tracked sold for an average price of more than $80,000, above the advertised range.
In response, the state government announced new laws that will require agents to publish a home’s original information. Book a home price at least seven days in advance will be sold. The laws will go into effect on October 1, but the agency and three representatives will only be followed under previous laws.
Rich did not detail how large a penalty CAV is seeking if the allegations are proven.
In April Ray White Oakleigh was fined $600,000 for underpricing nine properties. The maximum penalty for violating the law is $100 million for corporations and $2.5 million for individuals.
Rich detailed the allegations against Harcourts Judd White and three agents at a press conference attended by Consumer Affairs Minister Paul Edbrooke. He said 30 inspectors would be checking auctions in Melbourne’s inner north over the weekend to make sure they were not underbid.
The matter is listed for hearing in the Federal Court on September 4.
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