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In this week’s episode, the Trio tackle a serious issue..... Underquoting. It frustrates buyers, skews listing information, and undermines trust. In this fiery episode, Dave, Cate, and Mike unpack what underquoting really is, how to recognise it, and why buyers need stronger protection.

What Underquoting Actually Is 🔍

Dave kicks off with a clear definition: underquoting occurs when an agent knowingly markets a property below their genuine selling expectation to lure buyer competition. Cate calls out the emotional and financial cost; wasted weekends, building reports, and heartbreak. While Mike reminds listeners that intent matters. “Markets can throw us some surprises, but habitual low quoting is a deliberate strategy,” he says. 

Why It Happens 😤

Cate dives into the psychology: “Quote it low and watch it go.” Buyers believe they’ve found a bargain, then get emotionally invested and bid beyond budget. Dave and Mike agree; the system often rewards this behaviour. With penalties so small, some would consider them a marketing cost, so there’s minimal deterrent. 

Spotting the Red Flags 🚩

The Trio share tell-tale signs: 

• Unrealistic price guides versus recent sales
• Poorly chosen “comparable” properties
• Agents pushing back on receiving early offers, or step-quoting higher near auction
• Vendors’ reserves far above quoted ranges

If a particular agency always sells far above their guide, it’s not coincidence, it’s culture.

How Buyers Can Protect Themselves 🧠

Cate and Mike share empowering tools: track sold results, not quotes; ask direct questions about comparable sales; and never let emotions set your ceiling. Dave adds, “Budget for due diligence, and apply it with strategy, not sentiment.” 

Fixing the System ⚖️

The Trio turn their attention to reform. Cate explains Victoria’s “Statement of Information” system and its limits, noting regulators lack resources to enforce it. Together, the team propose meaningful changes: 

• Larger, tiered penalties tied to property value to truly deter misconduct
• Mandatory digital audit trails tracking buyer feedback and agent communications
• Public access to initial listing appraisals shared with vendors
• Automatic public guide adjustments when vendor expectations shift

“Buyers deserve trust and transparency, and tech makes it achievable,” says Mike.

And our gold nuggets!..... 

Cate Bakos's gold nugget: Cate advises against relying on CMA's (Comparative Market Analysis). While they can be useful for looking at the comparable sales, the algorithms themselves aren't reliable.

Mike Mortlock's gold nugget:"If you're not going to spend more time researching your property purchase than what you'd spend on your holiday, you should consider using a buyer's agent". 

Dave Johnston's gold nugget: Dave talks about the responsibility that rests on the buyer when it comes to understanding the right price to pay. "Control the controllables!" 

Shownotes: https://www.propertytrio.com.au/2025/11/10/underquoting-2/