U
nderquoting new home listings has long been a hidden problem in real estate, draining buyers’ time and mental energy. Melbourne‑based finance broker David Meadows says the practice persists despite recent efforts to curb it. “People expect the advertised price range to match the reserve price, but that’s rarely true,” he told Yahoo Finance. “It’s a known issue in the industry.”

    Meadows illustrated the impact with a recent Hawthorne auction. The property was listed between $1.55 million and $1.6 million, yet the bidding opened at $1.65 million and the agent never confirmed it was on the market. The final sale reached about $1.92 million—nearly 20 % above the advertised range. “That’s not an outlier; it’s just another weekend in Hawthorne,” he said. Such underquoting attracts buyers to the wrong listings, undermining honest agents and making it harder for them to compete.

    While not all agents engage in the practice, those who do can divert attention from properly priced properties. “I know many ethical agents who dislike underquoting, but their competitors keep doing it,” Meadows added.

    The Victorian state government has intensified its crackdown. In early 2025, 20 inspectors from the Consumer Affairs Underquoting Taskforce conducted a “blitz” at 20 auctions across Melbourne suburbs, searching for blatant underquoting. Since its 2022 launch and permanent status last year, the taskforce has fined more than 200 agents, totaling $2.3 million, and issued 290 official warnings.

    New guidelines released by Consumer Affairs require agents to justify their price guides with recent sales data for comparable properties in the area. This move aims to make price ranges more transparent and reduce the mental toll on buyers who otherwise waste weekends chasing misleading listings.