| Media item | |
| | Public reserves to hinder sellers | Geelong Advertiser,
Geelong
by Peter Farago
| 04 Jun 2026 | | General News - Page 12 - 316 words - ID 1204631719 - Photo: No - Type: News Item - Size: 119.00cm2 | |
People trying to sell their homes will be disadvantaged under new laws requiring vendors to publish their reserve price a week before an auction, a leading buyers' advocate says.
The state government introduced legislation to parliament on Wednesday to tackle dodgy real estate agents from underquoting properties by prohibiting agents from taking a property to auction unless the vendor's exact reserve is published a full seven days prior.
The law would be in place from October 1.
The legislation also mandates sold prices must be made public so buyers can see what homes in their area are really worth.
Melbourne buyers' advocate and Property Investment Professionals of Australia chair Cake Bakos said forcing vendors to lock in a price a week before auction would result in fewer properties being sold on the street.
"I'm not for a minute suggesting that underquoting is all right, because it's not," she said.
"Forcing a vendor to lock in a decision (on price) seven days prior is a very long time. You're really taking away a lot of an agent's and a vendor's ability to pivot when they need."
The Real Estate Institute of Victoria was "flabbergasted" the government ignored "commonsense and evidence-based expert warnings" to push ahead with the changes.
REIV chief executive Toby Balazs said the law would have a counter-productive effect.
"While the government's effort to address underquoting and improve the transparency of property transactions are well intended, its decision to move ahead with these laws will result in a real estate market with less transparency," he said.
The REIV's position called for a 10 per cent price guide that includes the reserve price of a home be published three business days ahead of auction.
Renters Minister Paul Edbrooke said it was designed to stamp out underquoting, an illegal practice where agents advertised a property at a price they knew to be below the vendor's reserve.
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