The comments come in response to an ABC News investigation criticizing practices used by some real estate agents, primarily on the east coast, to earn a listing or motivate buyers.
“It’s simple for buyers and sellers alike to research the estimated value of a property, and as such I don’t believe a sales representative allocating a value guide is necessary or beneficial. As reported in the investigation, it can also be problematic,” he said.
“Through sale processes such as a Set Date Sale or auction, you’re levelling the playing field and making the process more transparent for buyers and more reassuring for the seller. It removes ambiguity or potential for underquoting or appraising high.”
The investigation highlighted intentional underquoting, where agents list a property for sale with an unrealistically low-price guide to attract a wider network of potential buyers.
It can potentially cost would-be purchasers in inspections and other fees as they navigate the buying process.
The report also flagged the practice of providing a home seller an unrealistic inflated expectation of a potential sale price to gain a listing appointment, before “conditioning” them to slowly adjust the figure closer to where the market sits.
“At Realmark, we find the Set Date Sale method regularly achieves assured outcomes for sellers when conducted by a skilled agent, while providing a fair and transparent process for potential buyers to make a considered and confident offer to buy,” said Mr Percudani.
“Regardless of the strategy, having a process that allows the market to naturally determine the price will reduce the incidents of the agent conduct as raised in the Four Corners investigation.”
While WA is not immune to industry issues, Mr Percudani believes the dramatic rise and fall of property prices in Sydney and Melbourne can contribute to deviations in good practice.