At Abode Advocacy Group, we believe in full transparency and fairness when it comes to property transactions. However, we’ve noticed a concerning trend in Melbourne’s real estate market that could mislead buyers—especially those eyeing auction properties. It all revolves around a clause called “Consideration of Offers,” which can impact how price ranges are quoted and, ultimately, how you gauge your chances of securing a property.
How the Loophole Works
Imagine this scenario: You come across a property with a quoted price range that seems to be within your budget. Naturally, you think you’re in the running. However, what you don’t see are the vendor’s specific instructions to the agent, hidden within a legal clause that allows them to disregard certain offers—such as pre-auction offers or those without a deposit—even if those offers exceed the quoted price range.
Why is this significant? If the agent isn’t required to acknowledge these higher offers, they aren’t obligated to update the quoted price online. This means you might believe you’re competing at one level, when in reality, the actual buyer interest is significantly higher than advertised.
The loophole often comes into play through a clause where the vendor opts not to be informed of certain offers. For example, offers made by email or even formal offers submitted before the auction might be disregarded if the “Consideration of Offers” clause is activated. Once these conditions are met, the agent can keep the lower price range intact online, leaving unsuspecting buyers chasing a dream that’s no longer realistic.
A Real-World Example
We recently observed this tactic in action. A buyer offered $50,000 above the top of the quoted price range, only to be informed that the vendor was not considering any offers prior to auction—thanks to the “Consideration of Offers” clause they had signed. Despite this substantial offer, the price range on online portals remained unchanged. This is a clear example of how this loophole can be used to maintain a lower quoted price, creating a false sense of value.
Imagine the frustration for a buyer who, believing they’re in with a shot, invests time and money—perhaps $1,000 or more on building inspections and contract reviews—only to discover that they were never in the running. This practice is something we believe Consumer Affairs Victoria should take a closer look at, as it undermines the integrity of the auction process.
Protecting Yourself as a Buyer
While it’s important to note that this tactic is only used by a minority of agents, it’s still a concern. The more reputable agents will adjust the advertised price range to reflect genuine buyer interest. But to protect yourself, always dig a bit deeper. Ask the right questions: Is the quoted price range genuinely reflective of the interest, or is it just another strategy to lure more buyers?
At Abode Advocacy Group, we’re here to ensure you’re not caught off guard by these tactics. Our deep understanding of the Melbourne property market and our commitment to our clients mean you’ll have someone in your corner who knows the ins and outs of the game.
Stay sharp out there, and remember—having an experienced buyer’s agent by your side can make all the difference. If you’re considering buying in Melbourne, reach out to us at Abode Advocacy Group, and let’s navigate the market together.
