The state government has announced updated guidelines aimed at stamping out the illegal practise of underquoting a home’s likely sale price.
On 6 November, consumer affairs minister Nick Staikos announced legal guidelines would set clearer expectations for estate agents when listing a property for sale.
The new guidelines will ensure agents use the most appropriate comparable local properties when determining a home’s likely selling price before auction, to drive greater transparency across the industry and further protect homebuyers.
Under Victoria’s underquoting laws, estate agents must provide sellers with an estimate of the selling price for their home and must not advertise the property below this estimate.
The estimate must be reasonable and consider the sale prices of three comparable properties listed on the Statement of Information for prospective purchasers.
Taskforce officers have identified examples where agents have selected properties that greatly differ in age, size, location, build type, renovation status or school zone, despite more suitable comparisons being available.
The guidelines must be used by agents when selecting the three most comparable properties to determine a property’s selling price.
Consumer Affairs Victoria can seek evidence from agents showing how they chose the three most comparable properties, and penalties apply for not providing these records.
Since its launch in September 2022, the taskforce has received more than 5000 complaints, monitored more than 2800 sales campaigns and attended more 400 auctions – issuing 203 fines totalling more than $2.3 million and 292 official warnings to agents caught breaching their obligations.
