If you’re selling a property, it’s important to understand Victoria underquoting laws before your campaign begins.
Many sellers assume the advertised price is simply a marketing tool. However, Victoria underquoting laws require estate agents to advertise a price that reflects the property’s estimated selling price. The goal is to give buyers realistic expectations and promote a fair, transparent market.
What Is Underquoting?
Underquoting happens when a property is advertised at a price that is lower than the agent’s estimated selling price or lower than the price the seller has indicated they are prepared to accept.
For example, an agent should not advertise a property at $650,000 if their estimated selling price is $700,000.
These laws help reduce situations where buyers spend time and money pursuing properties that were never realistically available within the advertised range.
How the Laws Affect Sellers
Although the rules apply to licensed estate agents, sellers also need to understand how they work.
For example:
- Your agent must prepare a Statement of Information (SOI).
- The advertised price should be consistent with that statement.
- Comparable recent sales must support the estimated selling price.
- If market feedback changes during the campaign, your agent may need to update the advertised price.
As a result, sellers should expect honest conversations about pricing from the beginning.
Why Accurate Pricing Matters
Many owners believe advertising a lower price will attract more buyers.
However, that strategy can backfire.
Firstly, it may breach Victoria underquoting laws.
Secondly, it can damage buyer trust. Buyers who feel misled often walk away instead of making an offer.
Finally, realistic pricing attracts buyers who genuinely have the budget to purchase your property.
What Sellers Should Ask Their Agent
Before your campaign starts, ask your agent:
- How was the estimated selling price calculated?
- Which comparable sales support that estimate?
- Will the advertised price comply with current regulations?
- How will pricing change if buyer feedback is stronger or weaker than expected?
These questions help ensure everyone starts with the same expectations.
The Key Insight
Underquoting laws are not designed to limit sellers.
Instead, they encourage transparency and help attract buyers who are genuinely interested in your property.
A well-priced campaign builds trust, creates stronger engagement, and often leads to better negotiations.
Final Thoughts
Understanding Victoria underquoting laws is an important part of selling successfully.
Accurate pricing doesn’t reduce your chances of achieving a great result. In many cases, it does the opposite.
When buyers trust the advertised price, they’re more likely to inspect, compete, and make confident offers.