More realtors reported over setting opening prices too low
More real estate agents are being reported for setting the asking price on homes and apartments too low, according to figures from the Swedish Estate Agents Inspectorate. This practice can encourage heated bidding wars.
From January until the first half of November, 94 reports have been lodged with the inspectorate, which supervises and accredits Sweden's estate agents.
Thomas Carter, head of communications at the agency, told Radio Sweden that Sweden's white-hot housing market, especially in the large cities, is causing some agents to set low opening bid prices.
By setting lower accepted prices on houses and apartments, more people are willing to place bids on real estate and hence drive up the final price.
"You have so many people coming," Carter said about the bidding process.
Carter said the inspectorate looks at past deals by estate agents to look for a pattern of sales where the difference between the asking price and the final price is great.
Agents that are caught setting accepted prices too low on sales can warn, remand or suspended their license, a rare occurrence, by the the inspectorate.
Carter said agents must start with a fair market value when putting a piece property out for sale and that buyers should decide on their maximum limits for spending.