Victoria mandates home price disclosure at auction
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The government of Victoria, Australia, enacted new laws requiring real estate agents to publicly state a property’s reserve price at least one week before auction and to publish the final sale price for 18 months afterward.
These laws aim to address underquoting, when agents advertise prices lower than expected to attract interest, and increase transparency for potential homebuyers.
Paul Edbrooke, the state Minister for Consumer Affairs, said Victorians “are sick of wasting their weekends chasing homes they were never going to get.” While some support the intent to reduce misleading practices, industry groups like the Real Estate Institute of Victoria (REIV) argue the laws are poorly designed and could lead to overquoting. Toby Balazs, REIV’s chief executive, believes the regulations don't account for market dynamics and limit the seller’s control over their asset.
He suggests that a shorter timeframe for declaring the reserve price would be more effective. Independent experts also question the laws’ effectiveness. Property economist Cameron Kusher thinks declaring the reserve price closer to the auction would better reflect current bidding interest.
Buyer’s advocate Cate Bakos worries the new rules will add stress for sellers and may not prevent agents from circumventing the requirements, and that the expanded property price statements may give buyers a false sense of security by omitting crucial details about zoning and land quality. New South Wales is addressing underquoting through a public “Name and Shame” register, but has not adopted similar laws.
