Underquoting : Why These ‘Tough New Laws' Are Just Window Dressings?
In This Week’s How's The Market | Edition 139
Underquoting : Why These 'Tough New Laws' Are Just Window Dressings?
How To Actually Spot Underquoting In Melbourne
Underquoting : Why These 'Tough New Laws' Are Just Window Dressings?
The Victorian government rolled out new underquoting guidelines in November 2025.
This is after Consumer Affairs has received over 5,000 complaints since launching their Underquoting Task Force, with more than a quarter alleging agents used unreasonable comparable properties.
Interestingly, over a third of complaints came from agents accusing other agents of underquoting…
What's Actually Changed
Agents now must consider whether properties are renovated or unrenovated, build status, school zones, and proximity to shops.
They must use the most similar AND most recent comparable property.
External construction, age, architectural style, floor size, land size, bedrooms, bathrooms, and car spaces all must be considered.
Plus any "special features" like swimming pools.
The Problem Is Everything's Subjective
Here's where it falls apart.
Architectural style? Wildly subjective.
The difference between an Edwardian and a California bungalow is huge to some buyers and meaningless to others.
Floor plans are equally subjective.
Many 1920s homes had rear laundries with no backyard access.
Renovators moved those to create open-plan kitchens.
Is that comparable to an unrenovated property?
Swimming pools must now be considered, but pools are 50/50 in Melbourne.
Half the market wants one, half doesn't.
Many buyers refuse to buy someone else's pool.
The guidelines assume it's a positive.
That's not reality.
When One Emotional Sale Ruins Everyone's Campaign
A property in Prahran recently sold for $1 million over the quoted range.
The reason? A bidding war between the neighbour who owned two adjoining lots and the tenant who'd lived there for years.
Everyone agreed it sold for $600,000-800,000 more than comparable properties.
Here's where these guidelines create a massive problem.
If you're three houses down, under these guidelines you're forced to use that result when quoting.
There've been 12 sales in the suburb, 11 sold for $2.2 million, but this one sold for $3.2 million.
If you have to quote at $2.7 million but your property is worth $2.2 million, your campaign is stuffed.
You'll sit on the market for months and get a worse result.
What This Means For You
Don't expect underquoting to stop.
Use re-advertised prices as your best indicator of reserves.
Track which agencies consistently underquote.
Some agents quote with reserves in range, others are consistently $200,000 below.
Underquoting is baked into Melbourne's property culture.
Until that changes, expect more of the same with fancier paperwork.
If you wish to get the info on which agencies quote which way and see the actual quotes, solds and readvertised prices of the market in inner Melbourne, subscribe to our auction results below:
What The Agents Are Saying
Some markets are shifting down.
You’ve probably heard from us and others that the Melbourne market is heating up…
And it is…
But like we keep saying, there are markets within markets and not all markets are moving the same way.
The markets sub $1m are still strong.
The markets $1m - $1.5m are strong.
The markets $1.5m - $2m are doing okay.
Some markets between $2m - $4m are struggling right now.
I’ve been chatting with multiple agents this week that have said that any properties that aren’t the picture perfect, fully renovated, north facing block on a great street are passing in and then selling at the bottom of the range.
Multiple agents have said that they believe the buyers are there, but they’re not willing to pay top dollar.
At the same time, vendors are still chasing absolute top dollars for a lot of their properties.
One agent told me he was selling all of his stock, but most of them at the bottom of the quoted range and not at the top.
The Wow Factor!
101/29-31 Market Street, Melbourne, Vic 3000
A Grand Luxury Residence in the Port Authority Building.
I absolutely love these designs - it looks like it’s straight out of Peaky Blinders.
Why it WOWs:
Iconic 1929 heritage building with Beaux-Arts design
Former boardroom transformed into dramatic luxury living space
Marble kitchen with premium appliances & bespoke cabinetry
Luxury bedrooms with marble ensuites & heritage details
Prime CBD location with 2.5 car spaces + storage
Price guide : $3,800,000 - $4,100,000
Final Thoughts
Underquoting remains one of Melbourne's biggest buyer frustrations, and these new guidelines won't fix it.
The rules sound tough on paper, but they're nearly impossible to enforce given how subjective property comparisons actually are.
If you or someone you know would like assistance to buy this year, book in a call and we can discuss if we can help.
Thanks for reading this far!
We value feedback and if you have any suggestions on what you would like covered in the future please email me at tristan@tomii.com.au
Happy Buying!
Note: This is general advice and does not take into consideration your objectives, situations or needs. Please consider if this advice is suitable for you and your circumstances and speak to a professional before making any financial decisions.
