Some secrets in Sydney's property market have been hiding in plain sight for years.

Buyers have long suspected they were being misled—but proof was hard to come by.

Now, a new tool promises to shine a light on one of the industry's dirtiest tricks.

A buyer's agent hailed a groundbreaking website that exposes underquoting, saying it was long overdue.

Australian Property Advocates director Simon Murphy said the platform would bring 'accountability' to an industry that had become 'cooked'.

The platform, RealEstats, uses artificial intelligence to analyse property data and rank agents by how much their guide prices differ from actual sale prices.

AI platform exposes Sydney real estate underquoting. Image source: Pexels/Kelly | Disclaimer: This is a stock image used for illustrative purposes only and does not depict the actual person, item, or event described.

AI platform exposes Sydney real estate underquoting. Image source: Pexels/Kelly | Disclaimer: This is a stock image used for illustrative purposes only and does not depict the actual person, item, or event described.

'Everyone knows agents are lying about price guides, so I built a free tool to show just how much,' the creator realestats_sergio wrote on social media.

The website features a sortable database of agents, revealing who consistently underquotes or overestimates property values.

It also breaks down data at suburb and council level and includes affordability filters, giving buyers and sellers new transparency in one of Australia's most opaque markets.

Mr Murphy said real estate agents needed to be 'called out' over the dodgy practice.

'This is awesome. It's called accountability. It needs to happen,' he said.

He added that prospective buyers should now more than ever do their research, as underquoting was widespread across Australia.

'Stop looking at the listed price and start getting educated in the market. Start looking at the sold price,' he said.

'Underquoting has become a big issue, it's a big problem everywhere.... real estate agents have absolutely cooked this industry.'

Under New South Wales law, agents must provide a reasonable estimate of a property's likely selling price in the agency agreement.

If advertising with a price range, the upper figure cannot exceed the lower by more than 10 per cent.

Breaches can attract fines of up to $22,000.

'Agents are putting in price ranges like $900k–$990k for a property worth $1.2million. That's how they attract buyers,' Mr Murphy said.

Although there were no suggestion these agents had engaged in underquoting, but reported the disparity between guides and sold prices drawn from public data.

Underquoting is defined as a sold price being 10 per cent higher than the auction price guide.

For now, RealEstats only covers Sydney and parts of regional New South Wales, though expansion to other states could be possible.

RealEstats noted that the data was manually collected from public sources, meaning gaps, delays and errors were possible.

The results were estimates, it said, and should be considered opinion rather than fact.

Its disclaimer emphasised that not all Sydney agents were included, and inclusion or omission did not necessarily reflect professional competence.

'This material is provided for general information only and does not constitute financial, legal, or professional advice,' the site warned.

If you’re worried about property prices and dodgy guides, there are more warnings worth paying attention to.

Experts are now flagging new risks in the housing market that could affect buyers and sellers alike.

For a deeper look at what’s shaping the market and why caution is key, check out this analysis.

Read more: Australia’s housing market faces new dangers, ex-RBA expert cautions

Key Takeaways

• RealEstats uses AI to compare agent price guides with actual sales.
• The tool ranks agents by underquoting or overestimating trends.
• NSW law sets rules on price estimates and fines for breaches.
• Data is publicly sourced and should be considered opinion, not financial advice.

Could greater transparency finally force Sydney agents to stop misleading buyers with underquoting?

 

[meighLeigh]

I find it difficult to understand why an estate agent would 'underquote'. I thought their income was from a percentage of the sale price, so it is in their best interests to sell up, not down

 

[TD]

Some estate agents are very dodgy! And the majority are totally honest.

 

[Inot54]

They under quote to get the most parties interested as possible. People are renowned for getting carried away in auctions (which virtually all house sales are these days) and that creates the necessary competition. You need at least 2 buyers to want it to get top dollar.

 

[darrellh]

Well in Perth housing stock is so low that 20 plus people are going for every house so prices are going for way over the asking price. They know the asking price is no longer the selling price, it is a nightmare market.

 

[mylittletibbies]

I find it difficult to understand why an estate agent would 'underquote'. I thought their income was from a percentage of the sale price, so it is in their best interests to sell up, not down

For years agents have been under quoting and overquoting.
It is always wise to get at keast three appraisals on your home. If the agent is aware they are the only agent you are approaching they will often underquote in order to get a quick sale.
On the other hand, if they are aware that you are getting several appraisals they are likely to overquote to ensure they get your listing.
To get an idea of the value of your home look on realestate.com or domain.com
under SOLD properties. This will give you an idea of what comparable properties have sold for. Looking at properties that are listed on these sites FOR SALE can be misleading as many people think their home is worth more than it actually is and agents will list it at inflated prices, in order to ensure they get the listing, and then later tell you that the market won't meet that price.
Remember the agent is only giving you an appraisal, not a valuation. If you want a true valuation then you need to hire a real estate valuer (about $600 here in WA).
I am not a realestate agent but have sold my own homes and flipped properties, over the years, myself. Saving over $200,000 in commissions.
I have only done this in WA ( quite simple) and SA ( a little more involved, but still reasonably simple). I'm not sure if the procedure in other ststes.

 

[novezar]

I don't know about any one else. When we sold our house, 2 agents put a price which came in the same ball park as each other. We put an extra $20K on top before signing up. If we didn't do that, we wouldn't have received "Our Bottom" figure of what we wanted.