Home hunters sick of guessing what a home really sold for are about to get some relief, as Victoria moves to force home sellers to make their sale price public in an Australian first.
The Victorian government will introduce new laws later this year requiring vendors and real estate agents to publish the final home sale price in a bid to end property price secrecy.
Final sale prices don’t have to be published immediately in Australia, but they are typically published by valuer-generals in each state and territory months after the sale.
Victoria will become the first state in Australia to make sold prices public sooner, with the state government saying it will give buyers, vendors and agents a clearer understanding of what homes were actually selling for.
The state government plans to engage with the real estate industry to work out the specific details, such as the exact timeframe for public disclosure.
Consumer affairs minister Nick Staikos said the changes were aimed at improving transparency and confidence in the property market.
“Buying a house is stressful enough – so we’re making it fairer by requiring the sold prices of homes to be disclosed,” Mr Staikos said.
Home sellers in Victoria will have to disclose their final sale price sooner under a new rules flagged by the state government. Picture: Getty
“This is artificially inflating house prices, that’s not fair and why we’re changing the system.
“Underquoting is illegal and we’re taking action to stamp it out.”
The move to make final sale prices public was one of eight recommendations made by the Real Estate Institute of Victoria in January.
REIV chief executive Toby Balazs said the change would improve access to clear and reliable market information for buyers, sellers and agents alike.
Consumer affairs minister Nick Staikos says the move will make it fairer for home buyers, sellers and real estate agents. Picture: NewsWire / Diego Fedele.
“‘Price withheld’ is a term that we too often see on recently sold residential property listings,” Mr Balazs said.
“By significantly limiting this practice, this change will help to lift the curtain on current market data that can help stakeholders make better informed decisions.”
It’s the latest change announced by the Victorian government in its campaign to help home buyers, with the state election looming in November.
It announced an election promise to make home sellers pay for building and pest inspections ahead of a home sale last week, and announced plans last year to make real estate agents publish vendors’ reserve prices at least seven days before auction day.
While the REIV has supported the building and pest inspection move, it has strongly urged the government to rethink its reserve price promise.
Real Estate Institute of Victoria chief executive Toby Balazs says the change will help to lift the curtain on current market data. Picture: Supplied
“We continue to strongly advocate for the roll-back of the Government’s proposed mandatory seven-day reserve price disclosure requirement for auctions,” Mr Balazs said.
“Having the potential to trigger inflated reserve prices, a fall in clearance rates and an increase in offers prior to auction, this flawed requirement threatens to compromise the transparency and effectiveness of the public auction process.”
The REIV has encouraged the state government to adopt its own reserve price plan, requiring vendors to confirm their reserve price falls within a 10% advertised price range no later than three business days before auction.
Victoria was the first state to make vendors publish a sale price or price guide when selling a home, with NSW recently announcing plans to also make home sellers share a price or price guide in advertising.
Consumer Policy Research Centre chief executive Erin Turner said greater transparency would help level the playing field for buyers navigating the property market.
“Most Victorians will buy a home once or twice in their lifetime,” Ms Turner said.
“It is crucial to have transparent information about sales prices to navigate this high-stakes and stressful process.”
The median house price in Melbourne rose 3.5% to $1.012 million during the year to February, while house prices in regional Victoria jumped 7.1% to $628,000, according to the latest PropTrack Home Price Index.
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