Victorian homeowners selling at auction would need to confirm their reserve price is within a 10% range rather than disclose it entirely under a new industry-led proposal aimed at balancing buyer and seller interests.
The Real Estate Institute of Victoria (REIV) has unveiled a plan requiring vendors to confirm their reserve price falls within a 10% advertised price range no later than three business days before auction.
It's in response to state government plans announced last year to make real estate agents publish vendors’ reserve prices at least seven days before auction day or the fixed date of sale.
The move would be an Australian-first in a bid to stamp out underquoting - when a property is deliberately advertised at a much lower price than its expected sale price or the owner’s asking price to generate competition.
Underquoting is already illegal in Victoria, and real estate agents face fines of more than $40,000 or potential loss of sale commissions if they don’t comply with the rules.
The government is still finalising the changes, but expects to legislate new underquoting rules in 2026. The new rules would prevent real estate agents who failed to disclose the reserve price within the seven-day timeframe from proceeding with the auction or fixed-date sale.
However, the REIV says the state government’s proposed laws could trigger inflated reserve prices and a fall in clearance rates.
New rules in Victoria could make real estate agents publish a vendors' reserve price seven days from auction or the fixed date of sale. Picture: Max Mason-Hubers
The reserve price plan is just one of eight recommendations from the REIV to improve price transparency and consumer confidence in property sales in Victoria.
REIV chief executive Toby Balazs told realestate.com.au that the peak body's plan struck a fairer balance between sellers and buyers.
"The recommendations that we've put forward balance greater price transparency and protections for buyers, while also making sure vendors have their rights protected as well," he said.
“With the potential to trigger inflated reserve prices, a fall in clearance rates and an increase in offers prior to auction, the government’s proposal threatens to compromise the transparency and effectiveness of the public auction process.
REIV chief executive Toby Balazs says their proposal aims to balance buyer and seller interests. Picture: Supplied
“The fact that over 30% of complaints to the Victorian Government’s Underquoting Taskforce are made by real estate agents highlights a sector-wide desire to stamp out a practice that mars the reputation of all real estate professionals."
A Victorian underquoting taskforce established by the state government has received more than 5,000 complaints since its launch in 2022, with more than a third of complaints from other agents.
Mr Balazs also noted the government’s proposed law denied vendors the right to receive the best price for their home.
Victorian Consumer Affairs minister Nick Staikos says the government wants to make the housing market fairer. Picture: NewsWire / Diego Fedele
The REIV’s other suggestions include the compulsory disclosure of all sale prices once a sale contract becomes unconditional.
For private home sales, the REIV wants marketing to display a single, vendor-advised asking price.
Private home sales account for 75% of transactions in Victoria’s metropolitan markets, and more than 95% in regional areas.
The REIV is calling for mandatory bidder registration and identification prior to auction to bring Victoria in line with the rest of the country, boost transparency and protect vendors, buyers and agents.
It also wants enhanced criteria for comparable property sales information and stronger enforcement mechanisms to uphold industry professional standards.
Victorian consumer affairs minister Nick Staikos said they wanted to make the housing market fairer.
“Underquoting isn’t fair and it’s young Victorians and families paying the price,” Mr Staikos said.
Melbourne's median house price rose 3.8% to just over $1 million during the year to January 2026. Picture: Getty
“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.”
Under Victoria’s current underquoting laws, agents must select three recently sold properties in the local area to compare against when setting a reasonable estimate of a home’s selling price.
Melbourne's median house price increased 3.8% to $1.007 million during the year to January 2026, while unit prices have grown 2.8% to $624,000, according to the latest PropTrack Home Price Index.
In regional Victoria, the median house price has climbed 6.5% year-on-year to $623,000, while unit prices were 6.7% higher at $446,000.
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