A property is advertised with a price guide of '$800,000 - $850,000' but sells at auction for $950,000. The agent had three recent comparable sales ranging from $920,000 to $960,000. What issue has likely occurred?
Correct Answer
B) The property was likely underquoted, since the evidence pointed well above the guide.
This scenario indicates potential underquoting, where the advertised price guide was significantly below the property's true market value as evidenced by both the sale price and comparable sales. Underquoting misleads potential buyers and may breach advertising regulations in most Australian states.
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A property is advertised as 'Offers Over $800,000' but sells at auction for $950,000. The reserve price was set at $900,000. What is the most likely issue with this marketing approach?
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A property is advertised with a price guide of '$800,000 - $850,000' but the reserve price is set at $920,000. What issue does this create?