Thou Shalt Not Underquote
Fresh rules on comparable sales (because “vibes” are not a pricing strategy)
New guidelines have landed around how agents must select comparable sales when estimating a property’s selling price.
Why? Because underquoting is still ruining weekends and blowing up inboxes — and honestly, the industry can do better.
The good news? Most agents want to do the right thing. Now the new rules make it crystal clear what “the right thing” actually looks like.
The Law (aka: The Non-Negotiables)
When you estimate a selling price, you must select the three most comparable properties to justify that estimate.
Not “the three that support the listing strategy.”
Not “the three cheapest ones so more buyers turn up.”
The three most comparable.
As a buyer, what should I look for?
You look for the Price guide details link.
That will open a pdf of the Statement Of Information (see below)
That must include an indicative selling price which is a price or price range the property is likely to sell for, based on market conditions and the comparable properties.
If a written offer with a price higher than the indicative price is rejected, the agent must update the Statement of Information and any advertising within one business day. The same applies if the vendor tells the agent they would accept a higher price.
The vendor can choose not to tell the agent their final reserve price during the marketing campaign. However, if they do provide one, the property cannot be advertised below that price.
The agent must show three comparable properties that have sold in a 2km radius in the last 6 months (only).
If the SOI shows comparables that have sold outside (above or below) the stated range, that indicates the range is not accurate.
Let’s look at these two random Statements of Information (SOI) from an online portal
What actually counts as a comparable
When choosing the three sales, the agent must consider:
Renovated vs. unrenovated (yes, the kitchen from 1987 matters)
Whether it’s fully built or a vacant block (a slab is not a house)
The lot size (a 350sqm block vs a 600sqm block)
Near-identical properties in the same estate or apartment complex (copy/paste floorplans count)
School zones, nearby shops, amenities, overall neighbourhood appeal
In other words: you can’t compare a brand-new three bedroom townhome opposite a great school to a three bedroom weatherboard cottage next to a substation and call them “comparable.”
What this means for agents
They now need to follow these guidelines when determining the price range.
Consumer Affairs may ask the agency to show their working — like a maths test, but with more money at stake.
If they don’t comply?
Penalties do apply.
State law: The maximum penalty for underquoting was increased to $47,422 in November 2025 through the Consumer and Planning Legislation Amendment (Housing Statement Reform) Bill 2024.
Australian Consumer Law: Underquoting is also a breach of misleading and deceptive conduct laws, which can result in higher penalties:
Up to $2.5 million for individuals
Up to $50 million for companies
Other consequences for agents
Loss of commission: Agents may also lose the sales commission they would have earned. That one alone should be enough to deter serial offenders!
Legal action: Consumer Affairs Victoria (CAV) can take legal action for serious breaches. CAV also uses official warnings, enforceable undertakings, and other compliance tools against agents.
The takeaway
Transparency isn’t just good practice — it's good business. Buyers stay informed. Vendors stay confident. And nobody needs Panadol after an inspection campaign.
The SOI is a nuanced document, but the more you see the better you will get at deciphering the information. Is it accurate? If not, call the agent and ask why?
If you’re having trouble understanding a SOI, give us a call, one of our agents will be happy to talk you through it.
Younger Hill are Property Advocates located in Melbourne’s Inner North. Led by Fahey Younger, our team are fully licensed real estate agents and property specialists. We offer a collaborative and emotionally intelligent approach to transform old ways of buying property. With more than 20 years of combind buying and selling experiences, you’re in rock solid hands.
We service Melbourne Metro, Mornington and Bellarine Peninsulas, Rural Victoria (Gippsland, Daylesford, Hepburn Shire, Ballarat & surrounds), Sydney northern beaches, because property smarts don’t stop at the border.
