MEDIA RELEASE
The Real Estate Institute of Victoria (REIV) urges the Victorian Government to adopt a more nuanced and holistic approach to improving price transparency and consumer confidence in residential property transactions.
Released today, the REIV’s A Blueprint for Marketing of Residential Real Estate in Victoria submission to the Government was developed by the REIV-convened Strategic Working Group (SWG) to provide an informed sector-wide response to underquoting.
Headlining the blueprint’s recommendations is a requirement for vendors to confirm their reserve price falls within a ten per cent advertised price range no later than three clear business days before auction. A fairer and more effective alternative to the Government’s proposal to mandate the publication of reserve prices seven days prior to auction or fixed-date sale.
Having been ignored by the Government’s latest reforms, there is also a focus on more effectively tackling underquoting in private sales, which represent an overwhelming majority of residential property transactions.
Established in September 2025 and comprised of senior members of the state’s diverse real estate sector, the SWG is representative of the vast and varied Victorian real estate sector. The blueprint’s eight key recommendations include:
Marketing to display a single, vendor-advised asking price for private residential property sales
Compulsory disclosure of all sale prices once a sale contract becomes unconditional
Enhanced criteria for comparable sales information
Stronger enforcement mechanisms to uphold industry professional standards
Toby Balazs, REIV CEO, said the industry-informed blueprint strikes the right balance between ensuring greater price transparency for prospective buyers and protecting vendors’ right to achieve the best possible sale price.
“The fact that over 30 per cent of complaints to the Victorian Government’s Underquoting Taskforce are made by real estate agents highlights a sector-wide desire to stamp out a practice that mars the reputation of all real estate professionals. And it’s these professionals, with their in-depth understanding of the state’s property market, who are uniquely placed to drive meaningful and effective reform,” Mr Balazs said.
“Notwithstanding our engagement with the Government, including their representation on the SWG, and while formal consultation on reform was still underway, the Government’s pre-emptive announcement of proposed legislation, headlined by a mandatory seven-day reserve price disclosure requirement for auctions, was both unexpected and deeply concerning.
“With the potential to trigger inflated reserve prices, a fall in clearance rates and an increase in offers prior to auction, the Government’s proposal threatens to compromise the transparency and effectiveness of the public auction process."
“It’s a heavy-handed, counterproductive approach that discriminates against vendors by denying them the right to receive the best price for their home.”
The REIV will seek to continue to engage constructively with the Government to ensure a balanced and effective regulatory response to this critical industry issue.
Media Contact: media@reiv.com.au 03 9205 6607 www.reiv.com.au