REAL estate agents are selling properties at auction across Melbourne far above advertised prices despite state laws designed to stamp out the practice.
A survey by The Age of 95 auctions last weekend found that more than 80 per cent went under the hammer at least 10 per cent and in some cases more than 40 per cent higher than the prices quoted by agents. Leading agents have cited a strong, rising property market to explain why it is hard to pick prices accurately.
But the data compiled by The Age shows that the problem is endemic, with agents under-estimating final auction prices by an average of more than 20 per cent last weekend.
Among the most dramatic examples last weekend was a two-bedroom house in Niddrie that sold for $395,000 46 per cent more than its quoted price of $270,000-plus. Also breaking the 40 per cent barrier was a Richmond home quoted at $360,000-plus, which sold for $520,000. more…