Auctions and price guides in Victoria

Victoria regulates the price guide more tightly than any other state. Since 1 May 2017 an agent may not quote a price below the seller's asking price, the auction reserve if known, or the agent's own estimate. A Statement of Information gives the buyer comparable sales beside the guide, and a permanent taskforce polices the rules. On auction day there is no cooling-off period, and the auction rules have to be on display before the start. A property passed in on a vendor bid cannot later be marketed at that figure without saying so.

What a price guide may say

The rule is about the floor, not the format: a single figure or a range is allowed, but neither can sit below the floor described above. Consumer Affairs Victoria's guidance for agents on the Statement of Information refers to three comparable sales within a prescribed period. The statement's exact components were not returned verbatim from this environment. The guide on what "offers over" means has the format rules from the same CAV document. CAV has also issued guidelines that agents must follow when selecting the most comparable properties.

Underquoting

Underquoting is advertising, or telling a prospective buyer, a price below that floor. It is illegal, and Consumer Affairs Victoria enforces the rule through its Underquoting Taskforce, which began as a two-year operation and is now permanent. On the government's figures, an agent who underquotes risks fines of more than $11,000 for each breach, or penalties of almost $38,000 under the Estate Agents Act. For the most serious misconduct, the Australian Consumer Law carries penalties of up to $50 million for a corporation and $2.5 million for an individual.

In 2024-25, on CAV's annual report, the taskforce received 1,647 complaints, reviewed 600 campaigns, issued 48 infringement notices and $564,300 in fines, and began four court proceedings. The Premier's releases give cumulative figures (more than $3 million in fines, for one) without dates, so they are not repeated here. The more serious cases have gone to court.

To report it, use the taskforce's webform, reached from CAV's buyer page on property prices and underquoting. Keep the advertisement, the Statement of Information and any written price, with dates.

Reforms in train

Under the announced laws, an agent selling by auction or fixed-date sale has to request the vendor's reserve. It then goes in the Property Price Statement at least seven days before the sale. An agent who does not comply will not be allowed to take the property to auction. The stated reason: a vendor can currently set a reserve as late as auction day, and above the advertised guide.

The Premier's release gives a 1 October start; the year was not in the text returned. The vehicle is the Consumer Legislation Amendment Bill 2026, debated in June and July 2026, so 1 October 2026 is the expected date. Announced, not yet commenced. The Bill passed in July 2026 and is on the register as the Consumer Legislation Amendment Act 2026 (No. 36/2026); whether it carries these provisions, and the separately announced rule that agents publish the sale price afterwards, were not confirmed from this environment. The library's guide to the reserve price rule covers what it changes for a buyer.

On auction day

CAV's page for agents names the Sale of Land Regulations 2005 as the source of the auction rules, a name that may be out of date. The auction rules, information statement and any additional conditions have to be available for inspection at least 30 minutes before the start. Whether bidders have to register was not returned from this environment.

On vendor bids, the passed-in rule above is the confirmed one. A vendor bid may only be made by the auctioneer on the seller's behalf, only if the displayed auction rules permit it, with the arrangements announced before the auction starts; any other bid made for the seller is illegal.

The reserve is the lowest price the vendor will accept; below it the property is passed in, and the highest bidder usually gets first right to negotiate. There is no cooling-off at auction, nor on a private sale within three clear business days either side of one, so a buyer who signs on the day is bound. The deposit, negotiable up to 10% of the price, is held in a trust account until settlement.

Reading a guide against the sales

The guide is the vendor's and agent's number. The evidence is the recorded comparable sales: similar type, size and condition, sold recently and nearby. Build a fair-value range from those sales first, then see where the guide sits against it: under, within or above. Once the reform commences, the published reserve is read the same way. The three sales in the Statement of Information are the agent's selection, so check them for likeness rather than convenience. The guide on how a fair-value range is built has the method. A Property Decision Report does this for one property: the range, where the guide sits, and the opening, target and walk-away numbers to take into the room.