Underquoting in Real Estate has become normalised. As a Buyers Agent in Sydney, Paul Mulligan has seen firsthand how underquoting impacts both buyers and the property market. Importantly, Buyers Agent Sydney| Paul Mulligan believes transparency should always be prioritised for buyers. If you are seeking an experienced Buyers Agent, Sydney| Paul Mulligan is dedicated to making the process smoother and more transparent.
Some selling agents believe that if they don’t underquote, they won’t get enough people through the door. When even one agent plays that game, others feel pressured to follow to compete. Let’s be frank: the industry created this problem. Additionally, the practice of underquoting in real estate drives buyers to chase properties they never had a chance to secure. Meanwhile, honesty becomes a handicap.
If you’re not fully across what underquoting is and why some real estate agents use it, you can read our full explainer here: What is Underquoting in Real Estate and Why Do Agents Do It?. To get more insights, consult with Paul Mulligan, your trusted Buyers Agent Sydney expert.
The Government’s Role
The NSW Government and Fair Trading already have legislation in place. Fair Trading has recently stepped up its compliance activity. They’ve been carrying out audits, and public warnings have all been resourced to keep the pressure on agents who breach the law. I think these efforts deserve recognition, as noted by Paul Mulligan, an experienced Buyers Agent in Sydney. Moreover, government regulation is vital to addressing the issue of real estate underquoting.
But the reality is that underquoting has become normalised. Enforcement still relies too heavily on complaints from buyers who often feel powerless. A stronger, more visible presence is needed in addressing real estate underquoting.
• Increase enforcement resources so Fair Trading can proactively audit guide prices against actual sales data. This is preferable to relying heavily on complaints, particularly given widespread Underquoting in Real Estate practices.
• Escalate penalties for repeat offenders, including temporary licence suspensions, mandatory commission repayment, and public disclosure of breaches. This could help reduce instances of underquoting in real estate.
• Require public publication of the “Evidence of Estimate” for every listing. That way, buyers can see the same comparable sales data the regulator would see. Such measures support accountability around real estate underquoting.
• Run targeted education campaigns for agents, using clear, plain language updates on social media, email bulletins, and training events to explain exactly what underquoting is, how to comply, and the consequences if caught. A zero-tolerance enforcement stance is the only option. Additionally, educate sellers to recognise and report agents who use underquoting as part of their marketing strategy. The expertise of Buyers Agent Sydney | Paul Mulligan can also support this educational effort. Tackling underquoting in real estate through education creates a more transparent industry.
• Educate buyers on how to identify underquoting and make the complaint process quick, simple and accessible. This includes clear online forms and dedicated contact points. As always, consult a knowledgeable Buyers Agent such as Paul Mulligan when navigating these issues in Sydney.
What Major Real Estate Portals Can Do
The major real estate portals are a critical part of the solution. By working together, portals can help limit underquoting practices in real estate and foster greater transparency.
• Automatically display a property’s last advertised price guide alongside the eventual sale price so that the public can see variances. This will help detect patterns of underquoting in real estate listings.
• Build an “Evidence of Estimate” tab into listing uploads. This would ensure every price guide is backed by comparable sales data. This will give property buyers greater transparency and confidence, especially in a market where underquoting is prevalent.
• Automate a revision process when a price guide is not updated in line with the law. This will prompt agents to revise before property inspections. By doing so, the portals help curb underquoting in real estate.
• Integrate automated data feeds to Fair Trading so systems, not individuals, flag suspicious patterns. These feeds can be especially useful for monitoring underquoting trends in real estate.
The industry’s corporate and membership structures also need to take responsibility. This is something Buyers Agent Sydney| Paul Mulligan has long supported. Professional bodies must take action against underquoting in real estate circles.
Franchise Groups and Industry Bodies
• Make compliance with underquoting laws a strict term of franchise agreements with real penalties. This step will discourage underquoting occurring in real estate transactions.
• Establish internal audit teams that review random campaigns against the law before regulators intervene. That way, campaigns where underquoting in real estate is suspected can be addressed early.
• Publish compliance results across the group to reinforce a culture of accuracy. Sydney-based buyers agents like Paul Mulligan urge this, especially in light of regular underquoting in real estate.
• For industry bodies, go beyond training and suspend or expel members who breach underquoting laws repeatedly. The professionalism exemplified by Buyers Agent Sydney | Paul Mulligan sets a strong standard for the sector and encourages best practice, particularly regarding real estate underquoting.
Buyers Agents and Their Duty of Care’
Buyer’s agents have a professional, moral, and ethical obligation to act in their clients’ best interests, which includes protecting them from misleading or false price guides. Buyers agents play a critical role in guiding clients through the complicated world of underquoting in real estate.
Where serious underquoting is evident, buyer’s agents have a moral and ethical obligation to escalate the matter to uphold the integrity of the profession. This also helps minimise unnecessary damage to working relationships. Choosing to ignore it does not make the problem go away. Instead, it makes the buyer’s agent part of the problem. In addition, seeking support from the Buyers Agent Sydney expert, Paul Mulligan, can ensure best practice is maintained and help address issues related to underquoting in real estate.
The Bottom Line on Underquoting in NSW
Fixing underquoting in NSW is not about making one group the bad guy. Instead, it will take coordinated action, more vigorous government enforcement, smarter portal transparency, tougher franchise compliance, genuine industry discipline, and professional integrity from both selling agents and buyer’s agents. Changing the law isn’t enough. The market’s culture has to shift so that telling the truth about price is a competitive advantage, not a liability. In summary, ongoing engagement from industry leaders, including those concerned about underquoting in real estate, will be key.
Frequently asked questions about underquoting in NSW real estate
What does underquoting mean in NSW real estate?
Underquoting happens when a property is advertised with a price guide that is lower than the seller’s genuine expectation or the likely market value. This misleads buyers into pursuing homes they cannot realistically afford, wasting time and money.
Is underquoting illegal in NSW?
Yes. Underquoting is prohibited under NSW legislation. Agents are required to prepare and keep an “Evidence of Estimate” document that supports the price guide with comparable sales data. Advertising a price guide lower than this evidence is considered unlawful.
What action has Fair Trading NSW taken on underquoting?
Fair Trading NSW has increased compliance activity in recent years, including audits, taskforces, penalty notices, and public warnings. While these efforts are positive, many argue enforcement still relies too heavily on complaints from buyers rather than proactive monitoring.
How can buyers protect themselves from underquoting?
- Research recent comparable sales in the area
- Track changes to a property’s advertised price guide
- Ask agents directly for the Evidence of Estimate
- Report suspected underquoting to Fair Trading NSW using the online complaint form
What penalties exist for agents who underquote in NSW?
Currently, fines for underquoting are shockingly low often less than what an agent might spend on a Friday lunch. This makes them little more than a cost of doing business for repeat offenders.
To truly deter underquoting, penalties need to be significantly increased and backed by stronger consequences such as:
- Repayment of commission
- Temporary licence suspension
- Public disclosure of breaches
Until fines are meaningful, underquoting will remain a systemic problem.
Paul Mulligan is the Principal Buyers Agent & Expert Negotiator at MULLIGAN Buyers Agents, Sydney. One of only two buyer’s agents in Australia to complete Negotiation Mastery at Harvard Business School, Paul combines advanced negotiation skills with over 30 years of market expertise to achieve outstanding results for property buyers. Passionate about helping clients avoid costly mistakes, he provides expert guidance throughout the buying process from search to settlement.
