The Dark Art of Underquoting: When Real Estate Strategy Crosses the Line
There’s something deeply unsettling about the phrase ‘all strategy’ when it’s used to justify deceptive practices in real estate. Recently, a major firm in Melbourne’s east found itself in hot water after being accused of underquoting properties by hundreds of thousands of dollars. But what makes this particularly fascinating is how it exposes the blurred lines between aggressive sales tactics and outright dishonesty.
The Allegations: More Than Just Numbers
Consumer Affairs Victoria (CAV) has launched a Federal Court action against the Ray White Judd White Group, alleging that three of its agents—Andrew Dimashki, Anna Du, and Julie Wells—systematically underquoted properties in Glen Waverley and Wheelers Hill. The numbers are staggering: discrepancies of several hundred thousand dollars in some cases. But here’s where it gets interesting: the agents allegedly told vendors that underquoting was ‘all strategy.’
Personally, I think this reveals a deeper cultural issue within the industry. Underquoting isn’t just about misleading buyers; it’s about creating a false sense of urgency, driving up competition, and ultimately inflating commissions. What many people don’t realize is that agents often earn ‘kicker’ commissions when properties sell above an agreed price—sometimes up to five times the base rate. If you take a step back and think about it, this incentivizes agents to underquote, turning what should be a transparent process into a high-stakes game of manipulation.
The Human Cost of Deception
What this really suggests is that the victims aren’t just the buyers who end up paying more than they anticipated. Vendors are also caught in the crossfire, often signing contracts without fully understanding the implications. One detail that I find especially interesting is the text messages cited by CAV, where agents reassured vendors that the lower advertised price was ‘all strategy.’ This raises a deeper question: how many vendors are complicit in this practice, and how many are simply being taken advantage of?
From my perspective, the psychological impact of underquoting is often overlooked. Prospective buyers, already stressed by Melbourne’s competitive housing market, are led to believe they’re getting a fair deal, only to be outbid by astronomical amounts. It’s not just about money—it’s about trust. When agents prioritize their commissions over transparency, they erode the very foundation of the buyer-agent relationship.
A Broader Trend: The Bidding Blind Phenomenon
This case isn’t an isolated incident. Last year’s Bidding Blind investigation revealed that underquoting is rampant in Melbourne, with Harcourts Judd White (now Ray White Judd White Group) ranking as one of the worst offenders. Eighty percent of the properties tracked sold above the advertised range, with an average of over $80,000 above the top price.
What makes this trend so troubling is its systemic nature. It’s not just a few bad apples; it’s a widespread practice enabled by loopholes in the law. The Victorian government’s new legislation, requiring agents to publish a home’s genuine reserve price seven days before auction, is a step in the right direction. But it’s also a reminder of how long this issue has been allowed to fester.
The Future: Can Transparency Prevail?
In my opinion, the real estate industry is at a crossroads. On one hand, the new laws could force agents to adopt more ethical practices. On the other hand, as long as commissions remain tied to sale prices, the temptation to underquote will persist. One thing that immediately stands out is the need for a cultural shift—not just regulatory changes. Agents need to see themselves as facilitators of fair transactions, not architects of deception.
What this case really highlights is the power dynamics at play. Buyers and vendors are often at a disadvantage, relying on agents for information and guidance. When that trust is betrayed, the entire system suffers. If you take a step back and think about it, the solution isn’t just about penalties or laws—it’s about restoring integrity to an industry that’s lost its way.
Final Thoughts: A Wake-Up Call for the Industry
As someone who’s watched Melbourne’s real estate market for years, I can’t help but feel this is a wake-up call. The allegations against Ray White Judd White Group and its agents aren’t just about one firm or a few properties—they’re a symptom of a larger problem. What many people don’t realize is that underquoting doesn’t just harm buyers; it undermines the entire market’s credibility.
From my perspective, the real question is whether the industry will learn from this. Will agents prioritize transparency over short-term gains? Will buyers and vendors demand better? Or will ‘all strategy’ continue to be the modus operandi? Only time will tell. But one thing is certain: the days of unchecked underquoting are numbered. The question is whether the industry will evolve willingly—or be forced to change by the weight of public scrutiny and legal action.
