THE BAIT PRICING SCAMS

Jenman's comments about bait pricing have made him unpopular with many real estate agents.

Imagine, for a moment, what would happen if petrol stations advertised petrol for, say, $0.90 per litre but when motorists filled their cars, they discovered the real price was $1.30 per litre. There would be a national outcry. Service station operators and oil companies would be quickly prosecuted. They would face huge fines. The media scrutiny would be intense.

Well, in the property industry, using false low quotes to attract buyers has been a rampant deceit for many years. Neil Jenman has been a fierce opponent of bait pricing, especially with the auction system. For years, he has exposed how many agents will give a false high quote to persuade a seller to sign up with an agency; and then the same agent will give a false low quote to attract buyers to the same property.

Jenman's comments about bait pricing have made him unpopular with many real estate agents.

In 2001, Neil Jenman introduced a guarantee which he made available free of charge to all property sellers. The guarantee requires an agent to sign an undertaking stating to the owners of a property that the agent is not giving a false high quote. The agent must guarantee that if the property sells for less than the price quoted by the agent, then the agent will, if requested by the owners, immediately forfeit their right to commission. In others words, tell lies and lose your commission.

All over Australia and New Zealand, property sellers now have a method to force agents to tell the truth when quoting a likely selling price for their property.

FOOTNOTE: If you are selling a property, you can get free information and assistance on how to protect yourself from the 18 most common mistakes made by homesellers. Click here for details .