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?
Correct Answer
A) Likely underquoting, since the reserve sits well above the advertised range.
This is a clear case of underquoting, where the advertised price guide significantly understates the vendor's true price expectations as evidenced by the reserve price. This misleads potential buyers and violates consumer protection legislation.
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Previous Question
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?
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A property is passed in at auction with the highest bid of $780,000, but the reserve was $820,000. What happens next?