Victorians can now see a home’s reserve price before auction. What does this mean for buyers and sellers?
News Source
•Fri, 23 Oct 2026 14:00:29 GMT
📰 What Happened
From this month, Victorian sellers must publish a home's reserve price at least a week before an auction or fixed-date sale. The reserve is the lowest price a seller will accept. Buyers also get nearby sold prices, and final sale prices must be made public.
The aim is to stop underquoting, where homes are advertised far below what the seller expects. Agents are already testing ways around it. Some run open-ended campaigns with no set date, which means no reserve has to be shown. Others push private sales.
🔍 The Backstory
Underquoting, also called bait pricing, pulls buyers in with a low guide and then shocks them when the price jumps at auction. Victoria's laws are among the strictest in the world.
The UK keeps its reserve within 10% of a single guide price. NSW has raised fines for dummy bidding and underquoting. Agent groups say the Victorian rules are confusing and could slow an already soft market. Sale volumes fell on the first weekend.
🎯 Why It Matters
House hunting is stressful enough. Seeing the real price before auction day helps buyers budget and stops wasted weekends.
From this month, Victorian sellers must publish a home's reserve price at least a week before an auction or fixed-date sale. The reserve is the lowest price a seller will accept. Buyers also get nearby sold prices, and final sale prices must be made public.
The aim is to stop underquoting, where homes are advertised far below what the seller expects. Agents are already testing ways around it. Some run open-ended campaigns with no set date, which means no reserve has to be shown. Others push private sales.
Underquoting, also called bait pricing, pulls buyers in with a low guide and then shocks them when the price jumps at auction. Victoria's laws are among the strictest in the world.
The UK keeps its reserve within 10% of a single guide price. NSW has raised fines for dummy bidding and underquoting. Agent groups say the Victorian rules are confusing and could slow an already soft market. Sale volumes fell on the first weekend.
House hunting is stressful enough. Seeing the real price before auction day helps buyers budget and stops wasted weekends.