On 1 May 2017 new laws came into effect that applies to residential property sales and how they are advertised. The laws have been put in place to ensure underquoting when a property is advertised at a price that is less than the estimated selling price, the seller’s asking price, or at a price already rejected by the seller doesn’t occur.
As a result of these changes, you will now see what is called a ‘Statement of Information’ for each residential property that was listed on or after 1 May 2017.
What is a Statement of Information?
A Statement of Information is a document containing certain information relating to the property that is listed for sale.
What Does the Statement of Information Contain?
A Statement of Information will contain:
- the property address
- the indicative selling price
- three comparable property sales
- median price for the suburb
How is the Indicative Selling Price Determined?
The indicative selling price is based on the 3 most comparable property sales that were sold within the previous 6 months and are located within 2km of the property (applies to the Melbourne Metro area). The comparable properties must be of a similar standard or condition to the property for sale.
How Will I Know The Asking Price For a Property?
All residential properties placed on the market after 1 May 2017 will now advertise a single price or price range which will be listed in one of the following ways on the Statement of Information:
- a single price i.e. $850,000 or
- $800,000 to $850,000 (range of up to 10 per cent)
What Will The Comparable Sales Information Include?
Comparable property sales will include the following:
- the address of the property
- the date of sale of the property
- the final sale price of the property
What if I Can’t See Any Comparable Sales?
In some cases, it may not be possible to provide comparable sales. Reasons may include; there were no sales within a 2km radius of the property within the prior 6 months or the property is so unique there are no other properties similar. In these cases, you will see a statement outlining why there are less than three comparable sales within the prescribed period.
Where Can I Find the Statement of Information For a Noel Jones Listed Property?
The Statement of Information can be found via a text link on a property page on the Noel Jones website – it sits below the property description. You can also request this document from the agent who has listed the property or view one when you attend an Open For Inspection.
If you have further questions or would like to see a Statement of Information for a property that was listed on or after 1 May 2017 please contact your nearest office. If you would like further information on the new underquoting laws please refer to the Consumer Affairs Victoria website.