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Price guide ban in NSW not supported

2 May 2014

Recent reports that New South Wales and Victoria will follow the Queensland Government and introduce price guide bans are baseless, according to REINSW CEO Tim McKibbin.

“I cannot envisage this happening in NSW,” Mr McKibbin said.

“Since the Queensland Government announced its plans, REINSW and other key industry players have said that the ban is not the solution for the issue they are trying to address.

“We just can’t see the NSW Government making the same mistake that the Queensland Government is about to make. It is our view, that once the Queensland Government goes down this path and test drives the policy, they will be forced to repeal it.”

REISA President Ted Piteo told Real Estate Business earlier this week that South Australia have their own system that he thinks works well.

“If an agent believes a property is worth $450,000, but the owner wants $500,000, that’s fine but the advertised price has to be the higher of the two, so $500,000 – and the reserve cannot be set any higher than 10 per cent above that," Mr Piteo said.

“Some auctioneers will disagree with me, but I’m a fan of our system – although I have to say it has its flaws still.

“If the vendor wants a quick sale and is happy with less than market value, then it must still be advertised at the higher of the two. If they’re happy with $450,000, but comparable sales say it’s worth $500,000, then the agent must advertise at $500,000, or else they could face fines.”