Under Victorian underquoting legislation, if a property sells for $850,000, what was the maximum allowable bottom of the quoted price range at the start of marketing?

Q: What is the correct answer to: Under Victorian underquoting legislation, if a property sells for $850,000, what was the maximum allowable bottom of the quoted price range at the start of marketing?

The correct answer is $765,000. Under Victorian underquoting legislation, the bottom of any quoted price range cannot be more than 10% below the eventual selling price. With a selling price of $850,000, the maximum allowable bottom range is calculated as $850,000 minus 10%, which equals $765,000. This ensures agents cannot significantly underquote properties to attract more buyers through artificially low price ranges.

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

Victorian underquoting legislation was introduced to combat misleading advertising practices in real estate marketing. The key rule is that the bottom of any quoted price range cannot be more than 10% below the eventual selling price. This applies to all marketing materials including advertisements, websites, and verbal quotes. The legislation is enforced by Consumer Affairs Victoria and violations can result in penalties up to $33,000 for individuals and $165,000 for corporations. Agents must also provide a statement of information including recent comparable sales to support their price guidance. This forms part of broader consumer protection measures under Australian Consumer Law.

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

Remember 'Ten Below' - Victorian underquoting law allows up to 10% BELOW the selling price as the bottom of the range. Think: 'Don't go more than TEN percent BELOW the final sale.' When you see underquoting questions, immediately identify the selling price as your 'ground floor' and calculate 10% down to find the maximum allowable 'basement' (bottom of quoted range). This visual helps you remember both the direction (down from selling price) and the percentage (10%).

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

Always calculate 10% of the selling price and subtract from the selling price to find the minimum allowable bottom range.

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

An agent is marketing a property in Melbourne and estimates it will sell for around $850,000 based on recent comparables. To comply with Victorian underquoting legislation, they can quote a range starting as low as $765,000 but no lower. If they quoted '$720,000-$780,000' and the property sold for $850,000, they would face penalties as the bottom of their range ($720,000) was more than 10% below the selling price. The agent must carefully balance attracting buyer interest with legal compliance.

Question

Property MarketingUnderquoting_legislationVICMEDIUM

Under Victorian underquoting legislation, if a property sells for $850,000, what was the maximum allowable bottom of the quoted price range at the start of marketing?

Answer Options

A

$765,000

B

$807,500

C

$825,000

D

$833,000