A frustrated home hunter in Australia has criticised a real estate agent after being left with a £17,000 bill for a property that failed to sell. Jack Sukhen, who was looking for a home in western Sydney, claims he was a victim of 'price baiting' – a tactic where agents deliberately list properties below market value to attract buyers.
Sukhen viewed a four-bedroom renovated house with solar panels and a pool, listed with a price guide between £999,000 and £1,098,000. He offered around £1.2m but was told the property would go to auction. Despite his higher indication, the price guide remained unchanged. Sukhen believes the low guide was used to lure in potential buyers and drive up competition.
Buyer's agent Paul Mulligan described price baiting as 'unethical conduct and bad practice', noting it is common in the industry. Under Australian Consumer Law, agents cannot make false or misleading claims, including advertising a property below a rejected offer unless the seller is willing to accept less. However, enforcement appears weak, with critics saying regulators 'don't seem to care'.
In New South Wales, agents must provide a reasonable estimated selling price based on comparative market analysis. Vague terms like 'offers over' are illegal. Yet, property advocate Fahey Younger says price guides are often poorly taught during agent licensing, leading to widespread misuse. She noted that some vendors set reserve prices above the discussed range on auction day, creating a 'grey area' that frustrates buyers.
Another buyer, Jessica, who has been searching for a year, lost a bidding war for a penthouse listed at £900,000–£1m. She offered £1.19m, then £1.23m, but the property sold for £1.425m. She said the experience left her 'desperate' after spending money on inspections and reports for homes that ultimately sold far above the guide.
