Victorian reserve price switch-up sees underquoting inspectors out in full force

The changes officially came into effect on 16 October, requiring reserve prices to be made public at least seven days before auctions and fixed-price sales, and updated on all marketing platforms.

Inspectors attended auctions in the Stonnington, Boroondara, Greater Geelong, Campaspe, and Warrnambool local government areas, after monitoring sales campaigns from advertising to auction day.

The changes were designed to give buyers earlier access to a seller's reserve price and greater transparency about how advertised price ranges were calculated.

CAV director Nicole Rich said that while the taskforce was monitoring campaigns, the watchdog recognised the rules were still new and that agents were adjusting to the requirements.

“Our focus is on supporting compliance with the new laws while making clear that agents are expected to meet their obligations,” Rich said.

Since it commenced, the taskforce has monitored over 3,330 sales campaigns, issued over 420 official written warnings, and dealt with 260 infringement notices totalling more than $3 million.

The news came after it was projected that Victoria’s recent decision to force advertised price guides would bring better-quality competition to auctions while sales slowed.

Recently, Price Buyers Agents director Glenn Price told REB that Victoria had “got it right”, with the disclosed reserve price giving buyers more informed data about their position in the market

“If buyers know the number a week out, lowballers stay home, and the people who turn up are serious bidders,” Price said.

“Too many agents run properties to auction to see how it goes. When the vendor has to put a number on it, the unrealistic ones get found out before the weekend.”