HOME sellers could be forced to publish their reserve price under proposals discussed yesterday to stamp out underquoting.

Interesting post in the Herald Sun today (http://www.news.com.au/heraldsun/story/0,21985,25810291-2862,00.html):

The Real Estate Institute of Victoria was summoned by Consumer Affairs Victoria boss Claire Noone to discuss ways to stop agents who deliberately underquote.

The meeting follows a Herald Sun investigation that revealed many properties were passed in at higher than advertised prices.

The State Government move comes two days after the Australian Competition and Consumer Commission said home owners would face fines up to $220,000 for underquoting.

Under new laws to come into force on January 1, home hunters who are duped will be able to ask for the return of pre-purchase costs if a property is underquoted.

Stockdale and Leggo chief Peter Thomas said deliberate underquoting was a serious problem that needed to be stamped out.

He said despite decades of experience in real estate he, too, had been duped and wasted time viewing properties that had been advertised for less then they were worth.

Last month, a REIV committee rejected a proposal that would have forced vendors to publish their reserve price before auctions.

But pressure to clean up rogue estate agents continues to mount.

Bennison Mackinnon boss Iain Carmichael said forcing owners to publish their reserve price would put an immediate end to underquoting.

"Make the publication of reserves mandatory and overnight, underquoting ceases," said buyers advocate David Morrell. "Overnight, dummy bidders disappear."

REIV chief executive Enzo Raimondo described yesterday’s meeting with the Consumer Affairs as useful.

But the REIV is believed to have declared its opposition to laws that would force vendors to publish their reserve price.

"The REIV will continue to work with CAV to outline best practice to its members and increase the provision of education to consumers," Mr Raimondo said.

Consumer Affairs spokeswoman Heather Abbott said the department would continue to work with the REIV.

"Both organisations share the same objectives — that is, compliance within the industry," she said.

"CAV will continue with its real estate compliance and enforcement program."