Underquoting and agents' price guides: NSW, Victoria, Queensland

Why the advertised price is only a guide

An advertised price is the agent’s marketing, not an offer by the seller to sell at that figure. Competing buyers can push a price well above it. Consumer Affairs Victoria states that a sale above the advertised price “does not always mean that underquoting has taken place”, and NSW advises buyers to research recent comparable sales rather than rely on the price guide, and to “be wary if the agent’s pricing information seems low for the market”. For an independent figure, a property valuer can value the home.

The rules by state

New South Wales

Under the Property and Stock Agents Act 2002, the agency agreement must include the agent’s estimated selling price, which must be reasonable and backed by evidence: comparable sales, buyer feedback, valuations, the property’s features and the market. If evidence changes the estimate, the agent must tell the seller in writing, amend the agreement and take reasonable steps to update or withdraw advertising that shows a lower price. NSW Fair Trading’s guidance says agents must not quote any price below the estimate, in advertising or in any conversation with buyers, and must keep a written record of any price given verbally.

A seller may instruct the agent not to disclose the estimate; the agent must then give no price information at all, in advertising, in writing or verbally.

Penalties today. NSW Fair Trading’s guidance (updated 8 July 2026) lists a penalty infringement notice of $2,200, a court fine of up to $22,000, loss of the full commission and fees on the underquoted property, and possible disciplinary action against the licence.

New law. The Property and Stock Agents Amendment (Underquoting and Other Agent Conduct) Act 2026 is in force in part since 29 June 2026 (mostly higher penalties and new disciplinary powers). The underquoting part has a start date still to be announced, “currently expected to be towards the end of 2026”. Once it starts:

• agents must consider the sold prices of comparable properties when setting or revising the estimate, and keep records;
• every sale advertisement must show a price or price range, never lower than the estimate, the highest bid of a registered bidder at a passed-in auction, or a written offer rejected only because it was too low;
• a Statement of Information in an approved form, with comparable sales, must be linked in online ads, displayed at inspections and given to buyers within 2 business days of a request;
• the maximum court penalty for underquoting becomes $110,000 or three times the agent’s commission, whichever is higher, and $27,500 for Statement of Information breaches.

Payotte could not open the Act on the NSW legislation website (access refused), so the summary above follows NSW Fair Trading’s own pages.

Victoria

Consumer Affairs Victoria defines underquoting as advertising or quoting a price below the agent’s estimated selling price, the seller’s asking or reserve price, or a written offer the seller has rejected. The agent’s estimate is based on the three most comparable sales (one or two if fewer can be found): sold in the last 6 months within 2 km in metropolitan Melbourne, or the last 18 months within 5 km elsewhere, using all available sales data, including undisclosed sales.

From 1 October 2026, every residential property an agent is engaged to sell needs a Property Price Statement (it replaced the Statement of Information). It shows:

• an indicative selling price, as a single figure or a range of up to 10%;
• key features (building type, bedrooms, bathrooms, car spaces, internal floor area, land size);
• the three most comparable sales, or an explanation if fewer exist, and the suburb median price;
• the seller’s reserve price, published at least 7 days before an auction or fixed-date sale held from 16 October 2026, as one dollar figure with no qualifying words; the sale cannot go ahead without it;
• the sale price, published within 7 days of the sale becoming unconditional and kept online free for at least 18 months (exemptions exist for family or personal violence).

Buyers can get the statement at the open inspection, next to the price on the main online listing, or from the agent within 2 business days of asking. If an estimate changes or a higher written offer is rejected, online advertising must be updated within one business day.

Penalties. Consumer Affairs Victoria says breaches of the underquoting laws risk a penalty of “more than $50,000 (240 penalty units)”, and for more serious offences agents may lose the commission. False or misleading statements about land can also breach the Australian Consumer Law, whose maximum penalties are far higher, in the millions of dollars.

Further Victorian changes are scheduled: section 32 vendor statements available earlier (from 1 June 2027; see vendor disclosure by state) and new rules on deposits and commission (from 1 July 2027).

Queensland

Queensland takes the opposite approach for auctions. Under sections 214 and 216 of the Property Occupations Act 2014, when a home is to be, may be or is being offered at auction, neither the auctioneer nor the real estate agent may tell anyone outside the seller’s side the reserve price, a price they think is likely to produce a successful bid, or a price guide (maximum penalty 540 penalty units). The auctioneer may announce during the auction that the reserve has been met. For a sale not by auction, the same ban applies if the seller has told the agent not to disclose a price.

Agents may give a price bracket to a listing website only so the home appears in price searches, provided the site does not display it and the listing carries the statement prescribed by regulation. When a seller asks an agent what the home might sell for and the agent chooses to answer, the agent must give a comparative market analysis, or a written explanation if none can be prepared (section 215). See buying at auction.

South Australia and the other states

The Legal Services Commission of South Australia’s Law Handbook states that an advertised estimate may be a single figure or a range without symbols, that the lower figure may not be below the estimate in the sales agency agreement, that the upper figure may not exceed 110% of the lower one, and that an agent who breaches the rules cannot demand or receive commission or expenses (section 24A of the Land and Business (Sale and Conveyancing) Act 1994). That handbook page was last revised in 2013, and Payotte could not open the current Act or the Consumer and Business Services pages, so confirm the rule with the regulator. This guide does not cover Western Australia, Tasmania, the ACT or the Northern Territory.

What a buyer can do

1. Ask for the price document: the Property Price Statement in Victoria; in NSW, the Statement of Information once the new law starts.
2. Check recent comparable sales yourself and ask the agent what evidence supports the price.
3. Keep evidence: screenshots of advertisements, written price statements, and notes of verbal quotes with the date and time.
4. Report it. In NSW, lodge a complaint online with NSW Fair Trading, call 13 32 20 or the underquoting hotline on 1800 625 963. In Victoria, use Consumer Affairs Victoria’s online underquoting form with the address, the agent’s details, screenshots, the Property Price Statement and an explanation. Consumer Affairs Victoria states it does not respond to every report but uses them for compliance and enforcement.

A report to the regulator does not by itself give a buyer compensation or the right to buy at the advertised price.

Which professional to consult

A conveyancer reviews the contract before you bid or sign; a property valuer gives an independent value; and the real estate agent page explains which register to check for the agent’s licence. Before any offer, see the contract of sale and exchange and the cooling-off period.