Consumer Affairs in VIC drew a bit of a line in the sand this week, declaring that their 2-year taskforce ‘trial’ to police underquoting challenges was a success and they were making the taskforce a permanent fixture in their outfit.
The taskforce announced that in the past two years:
2800+ reports were submitted by the public, with more than 30 per cent coming from other agents.
1900+ sales campaigns monitored.
180+ auctions attended.
It’s a good start, but looking at these figures I can’t help but feel that if they’re going to really stand a chance of creating greater transparency in the Victorian market, then they’re going to need to do more than this.
The SOI – The stick in the hornet’s nest!
When they first brought out the legislation in the mid-2010s, I distinctly remember the initial communication being no more than a whisper that had everyone somewhat confused.
The premise was great, but the concern around what constituted a ‘comparable’ sale given time frames, size, age et cetera, was significant enough to have agents flapping about all over the place.
That confusion was then shared by buyers, which led to greater levels of anxiety between agents and their consumers, and CAV, unfortunately, had nothing/very few resources to be able to handle the heat that came from the ensuing drama.
The ongoing concerns
I will say that Nicole Rich, director of CAV, has been a lot more public-facing which has been great, but even with this permanent taskforce, I fear that they’re taking a pea-shooter to a gunfight, and the way in which they’re communicating it feels like they’re trying to drive a wedge in between consumers and agents.
Jacob Caine, President of REIV, as well as previous recent presidents like Adam Docking, Leah Calnan and Robyn Waters have been making consistent efforts to improve the relationship, and it looks like it’s getting somewhere.
Only 180 auctions attended in two years is not enough and there seems to be more finger-pointing than real action.
Other changes that could be made
If we are going to get really serious about creating transparency, then there are other things that we can do to improve the process.
The obvious one to us auctioneers is the registration of bidders for an auction, which is necessary in every other state but for some reason, VIC still lives in the Wild West.
This creates a clear playing field: sellers see the number of serious bidders, buyers know they’re not bidding against fake competitors, and agents gain clarity on the campaign’s status.
The big one for me though is collaboration over combat.
Over 30 per cent of reports have been made by agents, yet media still targets them.
Instead of point-scoring, CAV could collaborate with the industry to improve oversight.
They lack the resources to tackle this alone, but with agent cooperation, they could enhance transparency, like requiring video recordings of auctions.
As long as the “us vs. them” mentality persists, progress is limited, but most agents are willing to help if asked. Victorian Agents – BE PREPARED!
Now, the one thing that we can bank on is this – CAV will absolutely want to make the most out of this announcement so you will all need to be on your A-game (you should be anyway, but they’ll be on the hunt for any small error).
Make sure that you have the following sorted for EVERY LISTING:
Statement of Information – Follow this information to the letter
- Auctions – Make sure that you have the 2024 Sale Of Land Regulations on display, NOT the 2014 Regulations!
- OFI’s – Ensure that you have the Due Diligence Checklist, a copy of the property’s contract AND Section 32, and the Privacy Act on display, on top of any brochures and company information
- Authorities – Do an internal audit ASAP – They are turning up at offices unannounced!
Don’t be lazy and assume that ‘it’ll never be you’, there’s every chance it could be this Spring.
You have been warned!
