UPDATE: Read the media release from the Victorian Government: Bringing The Hammer Down On Underquoting
REIV MEDIA RELEASE
The Real Estate Institute of Victoria (REIV) welcomes effective regulatory reform to address underquoting concerns but cautions the Victorian Government against adopting an overly narrow and reactive approach.
This follows the Victorian Government’s announcement today that it will mandate the publication of reserve prices seven days prior to residential property auctions or sale by fixed date.
Toby Balazs, REIV CEO, reiterated that the REIV strongly denounces any form of unlawful underquoting and remains committed to contributing constructively to an effective, sector-wide response to stamping it out.
In 2022, the Government established the Underquoting Taskforce. Notably, more than 30% of complaints to the Taskforce have come from agents themselves, demonstrating the sector’s willingness to address the issue and uphold high standards of professionalism and service.
The REIV has long supported greater price transparency. However, the approach announced today is a disproportionate response that risks disadvantaging vendors in its current form.
In September, the REIV formed a Strategic Working Group to develop a Blueprint for Price Guides, with recommendations due to be made public in the coming weeks. Today’s announcement pre-empts that work while stakeholder engagement and review are still underway.
“We have been developing suitable solutions that strike the right balance between greater price transparency and protecting a vendor’s right to achieve the best possible price,” Mr Balazs said.
“We look forward to publishing the Strategic Working Group’s recommendations. Informed by extensive stakeholder input, the Group’s report will aim to guide the more nuanced regulatory response required to give buyers increased price transparency without compromising vendor rights,” Mr Balazs said.
“Having positively liaised with the Victorian Government as part of our Strategic Working Group activity, and the Government’s own underquoting reform consultation process, the REIV and its members remain committed to being part of the solution.”
Media Contact: media@reiv.com.au 03 9205 6607