Latest Underquoting Crackdown

Ban for sales without published reserve under new underquoting crackdown

The Victorian Government has announced a significant reform aimed at improving price transparency in the property market. From next year, any property listed for auction or a fixed date sale must have its reserve price published at least seven days prior to the sale. If a reserve is not disclosed within that timeframe, the property will not be permitted to proceed to auction.

What is changing

Under the current rules, vendors can set or adjust their reserve price as late as auction day. In many cases, this creates uncertainty for buyers who attend auctions with expectations that do not match the final selling range. The new requirement is intended to give buyers a clearer understanding of the genuine selling position well before the auction date.

The Government has also confirmed the establishment of a permanent Underquoting Taskforce. More than two hundred infringements have already been issued, totalling over two point three million dollars in fines, which highlights the growing emphasis on compliance and accurate price representation.

Why the change is happening

The reform is aimed at creating a fairer and more transparent buying environment. Many buyers, particularly those entering the market for the first time, have expressed frustration about attending auctions where the true reserve price sits well above the advertised guide. Publishing the reserve in advance is intended to support buyer confidence and reduce wasted time, effort and emotional investment.

How this affects buyers and sellers

For buyers
• You will have a clearer understanding of the true reserve price before committing to an auction.
• The change reduces the likelihood of attending auctions where the final price is beyond reach.
• Buyers will be able to plan and prepare with greater confidence.

For sellers
• You will need to determine a reserve price at least seven days before auction or fixed date sale.
• All marketing materials must reflect the published reserve and be updated promptly if anything changes.
• The shift may feel restrictive for some sellers, which reinforces the importance of early planning and clear communication.

For agents
• Compliance and accuracy will form a central part of every campaign.
• Education and guidance for both buyers and sellers will be essential.
• Transparent price communication will play a key role in maintaining trust and delivering strong outcomes.

Our position at The Coast

We welcome the increased transparency these changes introduce. Buyers deserve clarity and sellers benefit from a well informed marketplace, and we are committed to guiding our clients through the new requirements with confidence.

This approach reflects our values as a client focused agency. Transparency strengthens trust, and trust is the foundation of successful real estate transactions.