Victoria’s new auction reserve rule puts sellers under pressure, experts warn

Industry experts are warning new auction reserve price laws starting in Victoria this week are coming at the worst time for home sellers, while sold price reforms are being widely welcomed. The Victorian government is rolling out four new property price rules from October 1, including the controversial move to make vendors publish a reserve price at least seven days before their auction day or fixed-date sale. It’s an Australian-first move aimed at stamping out underquoting, but real estate agents and buyers’ advocates oppose the new rule. Real Estate Institute of Victoria (REIV) chief executive Toby Balazs said the industry supported greater transparency in residential property sales. “Our position has been that transparency needs to be underpinned by rules that are practical, workable and deliver better outcomes for consumers,” Mr Balazs said. “We strongly advocated against the mandatory publication of auction reserves seven days in advance, but the government has decided to proceed with its approach."The property market is already navigating a challenging period, so getting implementation right is particularly important.REIV chief executive Toby Balazs says the priority is to en...