In NSW, if a property receives three bids above the advertised price range during an expressions of interest campaign, what must the agent do regarding the advertised price?

Q: What is the correct answer to: In NSW, if a property receives three bids above the advertised price range during an expressions of interest campaign, what must the agent do regarding the advertised price?

The correct answer is Update the advertised price within 24 hours to reflect market feedback. Option B is correct because NSW legislation specifically requires real estate agents to update advertised pricing within 24 hours when they receive clear market evidence that the advertised price range is no longer accurate. Three bids above the advertised range constitute strong evidence of market response exceeding the guide, triggering the mandatory disclosure obligation. This requirement is designed to prevent misleading advertising and ensure consumers receive current, accurate pricing information throughout the marketing campaign.

Q: What background knowledge is needed for this Property Marketing question?

NSW Property and Stock Agents Act 2002 requires agents to provide accurate pricing information and update marketing materials when market evidence indicates advertised prices are misleading. The 24-hour rule applies when agents receive clear evidence that market response exceeds advertised ranges, such as multiple offers above the guide. This requirement supports Australian Consumer Law prohibitions against misleading or deceptive conduct. Expressions of Interest campaigns involve inviting offers within a specified timeframe, but remain subject to all pricing disclosure obligations. The legislation aims to protect consumers by ensuring they receive current, accurate market information throughout property marketing campaigns.

Q: What is a good way to remember the answer to this Property Marketing question?

Remember '24-3-UP': Within 24 hours of receiving 3 bids above the advertised range, you must UPDATE the price. Think of it like a thermometer - when the market temperature rises above your advertised range, you must adjust the reading within 24 hours to show the true temperature. When you see questions about pricing updates during marketing campaigns, look for evidence of market response exceeding advertised ranges and remember the 24-hour obligation to update. The '24-3-UP' formula helps identify when immediate action is required.

Q: What exam tip applies to this Property Marketing question?

Look for keywords like 'multiple bids above range' or 'market evidence exceeding price guide' - these trigger the 24-hour update requirement. Don't be distracted by campaign type or vendor preferences.

Q: How does this Property Marketing concept apply in Australian real estate practice?

An agent advertises a property for $800,000-$850,000 during an EOI campaign. On Tuesday, they receive three separate offers of $870,000, $875,000, and $880,000. Under NSW law, the agent must update their advertising by Wednesday to reflect that market response is exceeding the original guide, perhaps updating to $850,000-$900,000. This protects other potential buyers from being misled about current market expectations and ensures transparent pricing throughout the campaign period.

Question

Property MarketingUnderquoting LegislationNSWHARD

In NSW, if a property receives three bids above the advertised price range during an expressions of interest campaign, what must the agent do regarding the advertised price?

Answer Options

A

Nothing, as EOI campaigns don't require price updates

B

Update the advertised price within 24 hours to reflect market feedback

C

Wait until the campaign ends before updating any pricing information

D

Only update if the vendor specifically requests a price change