V
ictoria will introduce next year a law to curb underquoting in residential sales. The bill mandates sellers reveal their reserve price at least seven days before an auction, giving buyers a clear view of the minimum acceptable bid. Buyers agent Dion Marsden told Yahoo Finance that the measure will stop tactics such as raising the reserve after a sale passes in. For instance, a property quoted at $1.1‑$1.2 million with a $1.2 million reserve could be adjusted to $1.3 million after a $1.15 million bid, inflating the final price. With the reserve public, buyers would know the true threshold and could negotiate accordingly, preventing such post‑auction adjustments.

    Marsden called the change a positive step but an “over‑correction,” arguing that simply requiring the reserve to fall within the quoted range would protect sellers while maintaining transparency. The new rules will also bar agents who fail to disclose the reserve within the mandated timeframe from proceeding with an auction or sale, marking the first time Australia has imposed such a requirement.

    The Real Estate Institute of Victoria (REIV) has backed the initiative, citing the need to eliminate underquoting and promote price transparency throughout the selling process. While the law will reduce some of the freedom sellers currently enjoy, it aims to level the playing field and give buyers more power in negotiations.