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Real estate agents subject to inaccurate quoting claims by RealAs revealed: “For too long secrets have been kept from both sides of the equation”

Kirsten Robb /

RealAs has exclusively released research to SmartCompany it claims proves some of Stockdale & Leggo’s Melbourne offices have been inaccurately quoting on some auction prices.

SmartCompany reported yesterday RealAs, a Melbourne-based property startup which uses an algorithm to work out house prices, has received legal threats   from Stockdale & Leggo with research showing some of the agent’s offices had been out on quotes by as much as 30% on some sales.

But agents have defended the variance between what was quoted and what was paid on some sales, saying the Melbourne market is experiencing such a boom, some very popular properties will inevitably sell for more than expected.

Agents have also said the data does not take into account quoting ranges that change over the course of a campaign, as properties prove to be more popular.

RealAs says the data, for Stockdale & Leggo auctions only in the month of March, shows the difference between the price quoted publicly by some offices on some sales and the price they eventually sold for. It also shows the variance between the Stockdale & Leggo quote and the RealAs prediction.

The figures show several of Stockdale & Leggo quotes have been more accurate than RealAs on the quoting of property prices, while a number have been in favour of RealAs.

RealAs chief executive Josh Rowe this morning told SmartCompany his motivation for releasing the data is to promote transparency in the industry.

“We want to make it easy for homebuyers and sellers – even agents – to see what the market is actually doing,” says Rowe.

“For too long secrets have been kept from both sides of the equation.”

“It’s not an attack on real estate agents and in the case of Stockdale & Leggo, the data shows some agents have been more accurate than RealAs,” Rowe continues.

“But in a number of cases, their results are quite further out.”

But several Stockdale & Leggo directors this morning hit back at the claims, telling SmartCompany the hot market is producing a number of unexpectedly large sales.

Stockdale & Leggo Sunshine director David Falcone, whose office was shown in the data to have been off by 39.5% on the sale of 37 Chapman St Sunshine, says competition is blowing out the price on some sales.

“We definitely are quoting within 10% of the reserve price, as per the law,” says Falcone.

“If it goes a lot higher, that’s what people are willing to pay because the state of the market is hot right now and supply is so low. It’s just supply and demand,” he says.

Mark Imbesi, director and auctioneer of Stockdale & LeggoGlenroy, agrees agents are currently bringing in sales well above reserve prices and says that gives the wrong perception of inaccurate quoting.

“Vendors are being very realistic, and if buyers are paying way more, then it looks like that,” he says.

He also says many quoting ranges change over the course of the campaign and this research does not indicate that.

The data shows four sales by the Glenroy office had a variance of over 20% in March.

“It’s been red hot in Glenroy recently, I don’t know if it will continue like that, but it’s been very good for vendors, they’ve been very happy.”

Robyn Adair, Stockdale & Leggo Glen Waverley director, whose office had one sale at 2 Colebrook Way Mount Waverley which showed a 33% variance, said the market strength in the suburb led to some unpredictable big sales.

Meanwhile, Stockdale & Leggo Gladstone Park director Rick Goodman, whose office was shown in the data to have inaccurately quoted on the price of 26 South Circular Rd, Gladstone Park, refutes the price RealAs states the agent quoted of $330,000-$350,000, saying the range actually quoted was $370,000 to around $410,000.

Neil Butler, director of Stockdale & Leggo Dandenong, said any of the over and above sales were driven by the market, were above what the agent expected and were caused by demand.

SmartCompany contacted Stockdale & Leggo Croydon, one of the other agents listed in the research, but did not receive a response proper to publication.

John Gdanski, the lawyer representing Stockdale & Leggo, declined to comment further on behalf of the company.

Street Suburb Agency

Agent

quote

Lower

Agent

quote

Upper

RealAs

Sold

Price

Sold

Price

vs

Agent

Quote

Lower

Sold

Price

vs

Agent

Quote

Upper

Sold

Price

vs

RealAs

RealAs

vs

Agent

Quote

Lower

Diff

37

Chap-

man

St

Sun-

shine,

VIC

Stockdale & Leggo – Sunshine $430,000 ? $495,000 $600,000 39.5%   21.1% 18.4%

12

South-

downe

Cl

Spring-

vale,

VIC

Stockdale & Leggo – Dandenong $450,000 ? $540,000 $622,000 38.2%   15.1% 23.1%

60

Fara-

day

Rd

Croy-

don

South,

VIC

Stockdale & Leggo – Croydon $500,000 ? $604,000 $668,000 33.6%   10.5% 23.1%

2

Cole-

brook

Ave

Mount

Waver-

ley,

VIC

Stockdale & Leggo – Glen Waverley $1.2m ? $1.342m $1.6m 33.3%   19.2% 14.1%

51

Wheat-

sheaf

Rd

Glen-

roy,

VIC

Stockdale & Leggo – Glenroy $470,000 ? $553,000 $618,000 31.5%   11.8% 19.7%

126

South

Circu-

lar

Rd

Glad-

stone

Park,

VIC

Stockdale & Leggo – Gladstone Park $330,000

$350,

000

$366,000 $428,500 29.8% 18.3% 17.2% 12.7%

21

Bell-

brook

Dr

Dande-

nong

North,

VIC

Stockdale & Leggo – Dandenong $500,000 ? $604,000 $640,000 28%   5.9% 22.1%

37

Fran

St

Glen-

roy,

VIC

Stockdale & Leggo – Glenroy $450,000 ? $540,000 $570,000 26.7%   5.5% 21.2%

22

Pros-

pect

St

Glen-

roy,

VIC

Stockdale & Leggo – Glenroy $675,000 ? $802,000 $845,000 25.2%   5.4% 19.8%

21

Con-

nell

St

Glen-

roy,

VIC

Stockdale & Leggo – Glenroy $460,000

$490,

000

$517,000 $569,000 23.7% 13.9% 10.1% 13.6%

26

Oak-

wood

Ave

Dande-

nong

North,

VIC

Stockdale & Leggo – Dandenong $400,000 ? $458,000 $490,000 22.5%   7% 15.5%

6a

Mal-

colm

St

Oak

Park,

VIC

Stockdale & Leggo – Glenroy $670,000 ? $796,000 $815,000 21.6%   2.3% 19.3%

32

Bea-

cons-

field

Rd

Mul-

grave,

VIC

Stockdale & Leggo – Glen Waverley $690,000 ? $817,000 $833,500 20.8%   2% 18.8%

3

Hughes

Cres

Dande-

nong

North,

VIC

Stockdale & Leggo – Dandenong $350,000 ? $405,000 $410,000 17.1%   1.1% 16%

 

                   

97

North

St

Had-

field,

VIC

Stockdale & Leggo – Glenroy $550,000 ? $658,000 $641,000 16.5%   2.6% 13.9%

11

Batter-

sea

St

Had-

field,

VIC

Stockdale & Leggo – Glenroy $480,000 ? $559,000 $559,000 16.5%   0% 16.4%

4/11

Danin

St

Pascoe

Vale,

VIC

Stockdale & Leggo – Glenroy $440,000 ? $475,000 $510,000 15.9%   7.4% 8.5%

68

Suther

-land

St

Had-

field,

VIC

Stockdale & Leggo – Glenroy $470,000 ? $553,000 $542,000 15.3%   2% 13.4%

9/9

Austin

Cres

Pascoe

Vale,

VIC

Stockdale & Leggo – Glenroy $440,000 ? $475,000 $507,250 15.3%   6.8% 8.5%

54

Couch

St

Sun-

shine,

VIC

Stockdale & Leggo – Sunshine $430,000 ? $495,000 $490,000 14%   1.1% 12.9%

11

Walwa

St

Mit-

cham,

VIC

Stockdale & Leggo – Blackburn $650,000 ? $776,000 $738,000 13.5%   4.9% 8.7%

41

Cliff

Rd

Franks-

ton

South,

VIC

Stockdale & Leggo – Frankston $650,000 ? $776,000 $736,000 13.2%   5.1% 8.1%

32

Mathis

Ave

Toot-

garook,

VIC

Stockdale & Leggo – Rye $380,000 ? $388,000 $430,000 13.2%   10.9% 2.2%

7/9

Austin

Cres

Pascoe

Vale,

VIC

Stockdale & Leggo – Glenroy $500,000 ? $604,000 $565,000 13%   6.5% 6.5%

16

Myrtle

Grove

Dove-

ton,

VIC

Stockdale & Leggo – Dandenong $400,000 ? $458,000 $350,500 12.4%   23.5% -11.1%

13

Sheila

St

Rye,

VIC

Stockdale & Leggo – Rye $450,000 ? $499,000 $500,000 11.1%   0.2% 10.9%

16

War-

wick

Rd

Pas-

coe

Vale,

VIC

Stockdale & Leggo – Glenroy $600,000 ? $724,000 $665,000 10.8%   8.2% 2.6%

2/13

Sylves-

ter

St

Oak

Park,

VIC

Stockdale & Leggo – Glenroy $440,000 ? $475,000 $485,000 10.2%   2.1% 8.1%

2/15

Ethel

St

Oak

Park,

VIC

Stockdale & Leggo – Glenroy $530,000 ? $611,000 $584,000 10.2%   4.4% 5.8%

29

Ver-

non

St

Black-

burn

South,

VIC

Stockdale & Leggo – Blackburn $750,000 ? $879,000 $817,000 8.9%   7% 1.9%

34

Pitt

St

Fawk-

ner,

VIC

Stockdale & Leggo – Glenroy $390,000 ? $443,000 $423,000 8.5%   4.6% 3.9%

1/12

Walker

St

Bruns-

wick

West,

VIC

Stockdale & Leggo – Carlton $350,000 ? $411,000 $377,000 7.7%   8.2% -.5%

4

Cam-

bridge

Way

Camp-

bell-

field,

VIC

Stockdale & Leggo – Glenroy $330,000 ? $363,000 $355,000 7.6%   2.2% 5.4%

32

William

Hovell

Dr

Endea-

vour

Hills,

VIC

Stockdale & Leggo – Dandenong $550,000 ? $563,000 $590,000 7.3%   4.8% 2.4%

1

Glou-

cester

St

Had-

field,

VIC

Stockdale & Leggo – Glenroy $550,000 ? $658,000 $585,000 6.4%   11.1% -4.8%

79

Dever-

eaux

St

Oak

Park,

VIC

Stockdale & Leggo – Glenroy $500,000 ? $604,000 $520,000 4%   14% -10%

11

Gab-

rielle

Cres

Glad-

stone

Park,

VIC

Stockdale & Leggo – Gladstone Park $360,000

$390,

000

$404,000 $373,000 3.6% 4.6% 7.6% -4%

9

Monica

Cl

Endea-

vour

Hills,

VIC

Stockdale & Leggo – Dandenong $570,000 ? $581,000 $579,500 1.7%   .2% 1.4%

60

The

Circuit

Glad-

stone

Park,

VIC

Stockdale & Leggo – Gladstone Park $415,000

$449,

000

$473,000 $420,000 1.2% 6.9% 11.3% -10.1%

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Kirsten Robb

Kirsten Robb is a former journalist at SmartCompany. Previously, she worked at News Corp as a property reporter for Leader Newspapers and the Herald Sun, and holds a Masters of Journalism at Melbourne University.

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