Key Takeaways
- Underquoting in Sydney property causes buyers to waste time and money, often advertising prices below true market value.
- Despite being illegal under the Property and Stock Agents Act 2002, underquoting persists due to weak enforcement and low penalties.
- Paul Mulligan advocates for transparency and fairness, calling for a Royal Commission to address underquoting issues in the industry.
- Buyers can protect themselves by working with a buyer’s agent who has accurate market insights and negotiation skills.
- A recent rise in complaints shows underquoting remains a significant issue, prompting government action and public awareness.
If you’ve been searching for a property in Sydney, chances are you’ve encountered underquoting. This occurs when a property is advertised well below its true market value. It’s a frustrating and costly experience for buyers. They often spend thousands on due diligence for homes they were never realistically in the running for.
The issue has gained national attention, with ABC News (August 2024) reporting a sharp rise in complaints. Paul Mulligan, Principal of Mulligan Buyers Agents and one of only two Harvard-trained negotiators in Australia, was quoted as saying he sees underquoting “every day”. He called for a Royal Commission.
Paul’s voice carries weight not just in the media, but also in government. He is a member of the NSW Fair Trading Underquoting Roundtable. Recently, he was invited by the Strata & Property Services Commissioner to speak at a Leaders Forum attended live. It was live-streamed to more than 1,100 real estate agents.
With over 30 years of experience helping Sydney buyers, Paul understands the impact of underquoting on the market.
What is Underquoting and Why Does it Matter?
Underquoting occurs when a selling agent advertises a property at a price lower than what the vendor is willing to accept. It is also well below the property’s likely market value.
In NSW, this practice is illegal under the Property and Stock Agents Act 2002, but enforcement remains challenging. For buyers, underquoting creates three major problems:
- Wasted time attending open homes for properties they cannot afford.
- Wasted money on building inspections, legal reviews, and reports.
- Emotional disappointment when the property sells well above the quoted range.
For many Sydney buyers, particularly first-home buyers, expats, investors, and SMSF purchasers, this can be a significant setback.
The Current State of Underquoting in Sydney
According to ABC News (2024), complaints about underquoting in NSW continue to rise. More than 100 complaints have been lodged in 2024 so far, following 168 total complaints in 2023.
This follows earlier reporting from the Australian Financial Review (2021), which noted that underquoting complaints had doubled during Sydney’s hot market.
Despite the laws, buyers continue to face misleading price guides. The NSW Government has announced a task force to tackle the issue. However, many buyers remain sceptical until more vigorous enforcement is seen.
Why Underquoting Persists Despite Being Illegal
If underquoting is against the law, why does it still happen so often?
The answer lies in the imbalance between penalties and rewards. On average, fines for underquoting in NSW are around $2,200, while sales commissions can exceed $40,000 per property. For some agents, fines are simply treated as a cost of doing business.
The lack of consistent enforcement also plays a role. As a result, many buyers continue to face an uneven playing field; however, Fair Trading NSW now has a task force.
Paul Mulligan’s Role in Fixing the Problem
Paul Mulligan is not just a buyer’s advocate. He is a recognised industry voice working alongside regulators and industry leaders to address underquoting.
- Quoted in ABC News calling for a Royal Commission into underquoting.
- Member of NSW Fair Trading’s Underquoting Roundtable, contributing practical insights from decades of buyer advocacy.
- Leaders Forum panellist, invited by the Strata & Property Services Commissioner, where his views were broadcast to more than 1,100 real estate agents.
Paul’s advocacy reflects his long-standing commitment to transparency, fairness, and better outcomes for Sydney property buyers.
How Buyers Can Protect Themselves from Underquoting
While regulators continue to tighten controls, buyers don’t have to face underquoting alone.
Working with a buyers agent ensures you have:
- Access to accurate market data and recent sales evidence.
- Professional guidance to assess whether price guides are realistic.
- Negotiation expertise that helps level the playing field against selling agents.
With Harvard negotiation training and over 30 years of experience in the Sydney market, Paul Mulligan brings unmatched expertise. He protects clients from overpaying or wasting resources.
Underquoting is a systemic issue in Sydney real estate, but it doesn’t have to derail your property journey.
As both a buyer’s advocate and an industry leader advocating for increased transparency, Paul Mulligan ensures his clients are protected, informed, and empowered to secure property successfully.
If you’re tired of missing out on properties due to misleading price guides, contact Mulligan Buyers Agents today.
Frequently Asked Questions About Underquoting
What is underquoting in Sydney real estate?
Underquoting occurs when an agent advertises a property at a price below its expected selling price to attract more buyers.
Is underquoting illegal in NSW?
Yes, it breaches the Property and Stock Agents Act, but enforcement and penalties are often too weak to deter it.
How can buyers protect themselves from underquoting?
By working with a buyer’s agent who knows actual market values and can guide negotiations.
Why is Paul Mulligan an authority on underquoting?
He’s quoted in ABC News, a NSW Fair Trading roundtable member, and a Leaders Forum panellist for the Strata & Property Services Commissioner.
Book a Call With One of Our Experts
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.
