NSW Moves To Curb Property Underquoting With Clearer Price Guides, Tougher Fines
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From this week, the Minns Government is tightening the rules on property underquoting, aiming to give NSW buyers a fairer chance at purchasing their next home.
Announced on Sunday, the reforms prevent property agents from listing a property for less than a previously rejected offer or the highest unsuccessful auction bid.
Every listing must now include a realistic price guide—a range showing what the property is likely to sell for—and provide a State of Information, detailing comparable sales and the suburb’s median price, calculated under new, clearer guidelines
NSW agents found underquoting a property or misleading buyers could face fines rising from $22,000 to three times their commission.
Penalties for dummy bidding, or price pushing with no intention to buy, at auctions will also double from $55,000 to $110,000.
Serious breaches could require agents to publicly admit their misconduct or have their price estimates verified by an independent evaluator.
Agents who skip or fail mandatory training can also be penalised, while Fair Trading will now oversee and approve courses and providers.
Minister for Better Regulation and Fair Trading Anoulack Chanthivong said the changes will protect buyers from “unscrupulous real estate agents” and foster “a fair property market that works for everyone.”
He added, “By significantly increasing penalties for underquoting, we are ensuring misconduct can no longer be written off as a cost of doing business, but as a meaningful deterrent.”
The crackdown comes after The Sydney Morning Herald and The Age’s Bidding Blind investigation, which tracked more than 10,000 auctions, revealing almost half sold for more than 10 per cent above the advertised price.
In some cases, buyers found themselves chasing homes they ultimately couldn’t afford, wasting both time and money in their efforts.
Until now, NSW sellers could list properties without a price guide, leaving buyers to chalk up their own guesses.
Victoria was the first to introduce mandatory guides in 2017, including disclosure of comparable sales.
The new laws would bring the state closer to that level of transparency, though sellers’ reserve prices, the lowest amount accepted at an auction, won’t have to match the advertised range.
The Minns Government says the changes will remove the financial incentive to underquote, boost transparency, and give buyers the tools to make informed decisions in a highly-priced and competitive housing market.
