New real estate laws to protect house buyers against unrealistic prices

[paulandkerry]

REAL estate agents will be banned from advertising properties at unrealistic prices under new legislation released by the State Government

 

The Government received complaints from prospective purchasers who outlaid money for buildings inspections prior to auction only to find that the the property sold for a much higher price than advertised.

 

The reserve price will now have to be no more than 10 per cent over the acceptable selling price.

 

See the link below from Adelaide Now 1 July 2012

 

http://www.adelaidenow.com.au/real-estate/news/new-real-estate-laws-to-protect-house-buyers-against-unrealistic-prices/story-e6frefgc-1226413475660

[Guest Guest5035]

how will they work "acceptable selling price" i wonder.

 

stevo

[paulandkerry]

Hi Stevo,

 

I believe that the advertised selling price will have to be within 10% of the reserve price so that Vendor's are not advertising much lower prices to drum up interest and potential buyers are then outlaying money on building inspections etc when the actual reserve price may be out of their price range.

 

I believe there will be no restriction on what the property sells for over the reserve that will come down to the interest in the property at Auction.

 

Kerry