A HOUSE ADVERTISED AT WELL BELOW RESERVE PRICE HAS SPARKED ANGER
The long-simmering issue of accuracy in price advertising was front and centre again yesterday after a controversial auction in the eastern suburbs in which a vendor demanded $350,000 more than the property had been advertised for.
The house, which was advertised at $1.3 million to $1.4 million, was subsequently found to have a reserve of $1.75 million — 25 per cent higher than the upper end of the quoted range. It passed in at $1,511,000.
The difference highlights a longrunning loophole in Victorian law that allows a vendor to set their reserve at any level they want on the day of an auction, regardless of what the property has been advertised for during the sales campaign.