When marketing a property, real estate agents have a saying:

“Quote ‘em low and watch ‘em go, quote ‘em high and watch ’em die”.

Low quotes attract buyers; high quotes deter them and waste marketing spend. That is why underquoting persists and is hard to stamp out in the real estate industry.Victoria’s new laws aim to improve price transparency and curb underquoting at auctions and sales by set date.

What is Changing?

From 1 October, agents must publish the vendor’s fixed Reserve Price at least seven days before any auction or sale by set date held on or after 16 October 2026.

Currently, price guides do not bind vendors, who may keep the Reserve Price private and set it at any time—even during the auction.

Vendors will lose flexibility to respond to late bidder interest, bidder identity or other price-sensitive events.

If a vendor wanted to raise the Reserve Price, it would restart the seven-day period and require a new auction date—a costly loss of momentum few vendors will risk.

Setting the right Reserve Price will be critical: too high may deter bidders; too low may cost the vendor thousands if competition falls short. A Vendor Advocate can help strike the balance.

Vendors will also lose the option to pass in the property and negotiate above reserve with the leading bidder, as they must sell once the reserve is met.

Underquoting is especially frustrating for inexperienced buyers, who may pay for legal, building, pest and finance checks on a property they cannot afford. Because that work usually occurs more than a week before auction, seven-day reserve disclosure will not prevent the expense.

Other changes Victorian vendors need to know

The reserve-price disclosure requirement is part of a broader package of changes to Victoria’s property sales and underquoting laws.

From 1 October 2026

The Property Price Statement (PPS) replaces the former Statement of Information.

Agents must also publish the property’s final sale price within seven days after the contract becomes unconditional, with the Property Price Statement generally remaining publicly available for at least 18 months.

From 16 October 2026

For auctions and fixed-date sales held from this date, the vendor’s reserve price must have been publicly disclosed for at least seven days before the auction or sale can proceed.

From 1 June 2027

Section 32 statements will need to be made available earlier:

• for private sales, within 14 days after advertising;
• for auctions and fixed-date sales, at least 14 days before the auction or fixed-date sale; and
• before a purchaser signs a contract where the property is not advertised or will be sold within 14 days of advertising.

From 1 July 2027

The rules around early release of deposits and payment of agents’ commissions from deposits will also change. Agents will not be able to take their commission directly from a deposit released before settlement or rescission of the contract.

The Takeaway

Vendors must disclose the Reserve Price at least seven days before an auction or sale by set date. 

Although this may improve transparency, I believe it could stop vendors maximising their price and cost them thousands.

Buyers may benefit by knowing the vendor’s commitment without disclosing their own. Time will tell whether the reforms meet the Government’s objectives—and whether underquoting continues.

What would really help buyers?

Include a Building and Pest Inspection Report in the Section 32 Statement.  A vendor-supplied report would avoid duplicate inspections, streamline the sale and cut buyer costs. A report costs about $600, which is modest relative to selling costs. They are often required for finance.

Thinking about selling your property? Call me on 0418 517 643 or Phil Hoopmann – Senior Property Manager on 0402 890 830 if you would like to discuss a sales strategy, or learn where we think the property market is heading.

Regards, 
Robert Allanadale Director