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The Block agents under consumer investigation

Consumer Affairs Victoria is investigating whether 4 agents for The Block have underquoted the Richmond properties.

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Inspectors from Victoria’s consumer watchdog have seized sales documents and advertising material from the four agents selling the properties on The Block, to investigate whether any have been underquoted.

“Consumer Affairs Victoria took a proactive approach to this high-profile sale that has been subject to a lot of media,” CAV spokeswoman Heather Abbott told the Sunday Herald Sun.

Underquoting is a much bigger issue for the show than the few cosmetic misdemeanours that Today Tonight tried to slap it with last week. Agents found guilty of underquoting face substantial fines and civil penalties.

Hocking Stuart, Biggin & Scott, Woodards and Jellis Craig could each face fines of close to $25,000 if found guilty.

The three single-fronted properties were initially advertised for $800,000 to $880,000, while the double-fronted house was advertised for $900,000 to $990,000.

But Sydney real estate agent John McGrath, one of the show’s judges, valued them at more than $1 million.

Quote ranges were later removed from advertising.

The four Richmond properties went under the hammer last night at an invitation-only affair held at Fitzroy Town Hall. Channel Nine last night said that there were more than 20 registered bidders.

A spokeswoman for Channel Nine told The  Sunday Age: ”We have nothing to hide.”

NB: TV Tonight blogging live results tonight.

9 Responses

  1. Totally gree Guy. Some serious questions need to be asked about the reserves versus the final “sales” amounts – someone either doesn’t know how to value or doesn’t know the market.
    It made for very anti-climactic viewing and the final scenes where Polly and Waz actually weren’t sure they’d won were terribly handled. They didn’t know, the audience didn’t know, Shelley Craft looked bewildered and then all of a sudden we cut to the team standing out the front of the town hall saying goodbye.
    Finale viewers are a simple lot, we need musical crescendoes, confetti and someone official actually saying: congratulations, you have won!
    Gosh!

  4. David Knox wrote:

    “Hocking Stuart, Biggin & Scott, Woodards and Jellis Craig could each face fines of close to $25,000 if found guilty.”

    Peanuts. A round of drinks. A brace of floozies. They would laugh in your face, if found guilty. A suspension of the ticket to operate is the only option.

  5. Not commenting on these particular auctions but, in my experience in Perth, property auctions are a joke and a waste of time unless you’re prepared to pay over the asking range.

    They were also supposed to have clamped down on ringers pushing the price up but it still goes on. With commissions of 2-3% of the sale price, every additional $10k at the final hammer is another $200-300 in the pocket of the agent, so there is a strong incentive to fudge (or ignore) the rules

  7. As someone who gave up househuntng because I became fed up with going to auctions where properties were being passed in since the reserve was outside the quote I can only appluad CAV and hope that this is a wake up call for the real estae industry in Victoria.

  8. Ch9 could not have scripted this better, if they tried. Extra publicity with a twist going into the seasonal finale. Did they find a big enough venue to hold the egos of the tv execs And the estate agents, I would have though they would need the MCG for that one.

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