A vendor's reserve is $800,000 and the agent's advertised guide is '$800,000 - $850,000'. Three weeks in, the agent has received several genuine written offers between $880,000 and $900,000. What should the agent do?
Correct Answer
D) Revise the price guide upward to reflect the genuine offers and comparable evidence.
Once genuine offers exceed the advertised range, the range no longer reflects what the agent reasonably expects the property to sell for. In NSW and Victoria the agent must revise the estimate and update the advertising, and elsewhere leaving a stale guide in place risks misleading conduct under the Australian Consumer Law. The guide should move up to reflect the offers and comparable sales.
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- → A married couple intend to bid together at a NSW residential auction to buy the house jointly. What registration is required?
- → Tom plans to bid at a NSW house auction on behalf of his sister, who will instruct him by phone from Perth. Neither holds power of attorney. What must Tom do to bid for her?
- → Before a NSW residential auction, the vendor asks the auctioneer to make two vendor bids if bidding stalls, both announced as vendor bids. What must the auctioneer tell the vendor?
- → A buyer arrives to register at a NSW residential auction with only her overseas passport, which does not show her address. What will allow her to register?
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Previous Question
A vendor instructs an agent to pass in their property at auction if bidding doesn't reach $750,000, but the highest bid reaches $745,000. The agent sells the property for $745,000 immediately after the auction. What is the most serious issue?
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A vendor instructs their agent to set a reserve price of $1.2 million but wants the property advertised as 'Auction - Price Guide $950,000+'. The agent has recent comparable sales between $1.15-1.25 million. What should the agent do?