17 Jun
In an effort to crack down on underquoting, REIP research suggests Victoria’s proposed auction reserve disclosure laws may not be delivering the confidence the government hoped for.
A survey of 197 Victorian sellers found that only half believe the proposed reforms of disclosing reserve prices 7 days prior to auction will achieve their intended outcome of making the process fairer.
The data reveals:
- 50% believe the changes would make the sales process fairer
- 42% said it would not improve outcomes
- 8% believe it could make the situation worse
The findings also raise questions about the potential impact on Victoria’s auction market, with 26% of respondents indicating they would reconsider selling by auction if the reforms proceed in their current form.
Robert Ozzimo, Executive Director & Auctioneer at Harcourts Rata & Co, said the reforms would require vendors to make important pricing decisions earlier in the campaign than they have traditionally.
“The challenge will be balancing transparency with maintaining the flexibility needed to respond to genuine market feedback.”
With Melbourne continuing to lead the nation as Australia’s auction capital, the industry is now focused on finding solutions that improve transparency while preserving confidence in the auction process.
Is there a better way to tackle underquoting?
While the industry supports greater transparency for buyers, many agents believe there are more effective ways to address underquoting.
One alternative gaining support is a model proposed by the REIV that would require vendors to confirm their reserve price falls within the advertised price range no later than three business days before auction. Advocates argue this would provide buyers with greater pricing certainty while preserving flexibility for vendors to respond to market feedback throughout the campaign.
REIP CEO Sadhana Smiles has also highlighted the potential role of AI-driven analysis to identify pricing anomalies and target enforcement efforts where genuine underquoting concerns exist.
As the discussion continues, agents across Victoria are already adapting their vendor conversations, appraisal processes and auction strategies in preparation for possible changes.
Ozzimo said preparation is now less about debating the legislation and more about ensuring vendors are equipped to navigate the new environment.
“The biggest focus is ensuring our pricing conversations are backed by strong evidence and that vendors are receiving clear, consistent advice throughout the campaign. Regardless of whether you support or oppose the changes, the legislation is coming, so our responsibility is to adapt and continue delivering the best possible outcomes for our clients.”
Men’s Health Week: Resilience, early detection & speaking up
This Men’s Health Week, Future Fit Leadership host Sadhana Smiles sits down with Hugo Toovey, founder of 25 Stay Alive, for a powerful conversation about resilience, early detection and the importance of speaking up when something doesn’t feel right.
At just 21, Hugo discovered a lump but delayed seeking medical advice for more than six months. By the time he sought treatment, the cancer had spread. Five years later, after successfully beating testicular cancer, he faced a second diagnosis – aggressive bowel cancer at age 26.
Today, Hugo is using his experience to encourage Australians to take a more proactive approach to both their physical and mental health. Through his charity, 25 Stay Alive, he is challenging the belief that serious health issues only affect older Australians and encouraging people to seek help sooner rather than later.
His message is simple: know what’s normal for your body, don’t ignore changes, and don’t be afraid to ask for help.
Listen to the full episode and hear Hugo’s remarkable story.
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