No reserve, no auction: Victoria’s bold new rule

Victorian homebuyers will soon get a clearer picture of what a property might actually sell for, with the Allan Labor Government introducing laws requiring agents to disclose the reserve price at least seven days before an auction.

The reform, hailed as an Australian first, aims to eliminate underquoting by giving buyers accurate pricing information ahead of time. If the reserve is not published in time, the property cannot proceed to auction or a fixed-date sale.

Consumer Affairs Minister Nick Staikos said the changes were about fairness and transparency.

“Underquoting isn’t fair and it’s young Victorians and families paying the price,” he said.

“That’s why we’re stamping it out by requiring reserve prices to be published at least seven days before an auction.”

Agents will also be required to update all marketing materials immediately to reflect the published reserve and remove any outdated pricing.

The legislation builds on earlier reforms introduced this month, which tightened rules around how agents select comparable sales to set a price guide.

The government has also made its underquoting taskforce permanent, with more than $2.3 million in fines already issued since its inception.

But not everyone is on board. The Real Estate Institute of Victoria (REIV) has pushed back, warning the changes could negatively impact sellers.

REIV CEO Toby Balazs said the institute supports transparency and condemns unlawful underquoting, but argued mandatory reserve disclosure could disadvantage vendors trying to get the best sale price.

“We’ve been developing solutions that strike the right balance between greater price transparency and protecting a vendor’s right,” he said.

The REIV plans to release a report outlining its alternative reform package, developed through a government working group.

Meanwhile, Staikos said more changes could still be on the table.

“Buying a home is already stressful enough without misleading and dishonest price estimates,” he said.