The state government is introducing new laws to more intensely target the practise of underquoting in house sales.
The laws will be introduced next year requiring real estate agents to publish vendors’ reserve prices ahead of an auction or fixed-date sale
Currently, vendors can set a reserve or asking price as late as auction day – and at a level higher than advertised.
The new laws will require agents to publish the actual reserve price at least seven days before auction day or fixed date of sale, and real estate agents that fail to disclose the reserve price within the time frame will not be allowed to proceed to auction or sale.
Consumer affairs minister Nick Staikos says this leads to Victorians showing up on auction day for a house they can’t afford.
“Underquoting isn’t fair and it’s young Victorians and families paying the price,” he said.
“That’s why we’re stamping it out by requiring reserve prices to be published at least seven days before an auction.
“We want the housing market to be fair – that’s why we’re continuing to crack down on underquoting with strong laws, a dedicated taskforce and active enforcement.”
This follows recent changes which significantly strengthened the guidelines on selecting a comparable property used to determine a home’s likely sale price – setting clearer expectations of agents when listing a property.
These changes are being enforced by a taskforce established by the state government.
The taskforce uses a range of methods to monitor the property market, including tracking sales campaigns, inspecting agencies and attending auctions – with more than 200 infringements totaling more than $2.3 million in fines issued so far.
