14/10/2026
Ending Auction Deception:
Why Victoria’s new Reserve Price Laws Are a Win for Buyers
For decades, the real estate industry has operated on a cynical motto: “Quote ‘em low and watch ‘em go, quote ‘em high and watch ’em die.”
Lowball price guides are weaponised to lure hopeful buyers in, wasting their time, energy, and hundreds of hard-earned dollars on legal, building, and pest checks for properties they never actually had a realistic chance of securing. Victoria’s new property laws put a much-needed stop to this deceptive game, prioritising transparency and protecting everyday consumers.
Protecting Buyers from Wasted Time and False Hopes
Under the old system, buyers were routinely strung along. People would spend weeks inspecting a property, paying for independent due diligence, and rearranging their weekends to attend an auction—only to watch the actual bidding skyrocket far beyond the advertised price guide the moment the reserve price was finally revealed.
The requirement to publicly disclose the vendor’s fixed Reserve Price at least seven days before an auction fundamentally shifts the power back to the buyer:
• No More Moving Goalposts: Vendors and agents can no longer hide their true baseline expectations until auction day arrives. Buyers finally get clear, honest visibility into what a seller will actually accept.
• Respecting Consumers' Time: Instead of walking blindly into a high-pressure auction environment only to realise the home is completely out of reach, buyers can make informed decisions before investing emotional and financial capital.
• True Price Transparency: Replaced by the robust new Property Price Statement (PPS), the days of vague, artificially deflated price ranges are numbered.
A Clear Roadmap of the Reforms
The Victorian Government's broader legislative package ensures greater accountability across the entire board:
• 1 October 2026:
o The Property Price Statement (PPS) replaces the outdated Statement of Information, bringing transparency to comparable sales, property measurements, and market expectations right from the start.
o Final sale prices must be published within seven days of a contract becoming unconditional, shining a light on true market value.
• 16 October 2026:
o Mandatory public disclosure of the vendor's reserve price at least seven days prior to any auction or fixed-date sale takes full effect. Auctions cannot proceed if this rule is bypassed.
• June & July 2027:
o Further protections roll out, including earlier access to Section 32 vendor statements (giving buyers critical legal details 14 days prior) and stricter controls over agent commissions and deposits.
The Takeaway: A Long-Overdue Shift Toward Fairness
While critics argue that rigid rules limit flexibility for vendors, these reforms are a massive win for fairness and consumer protection. For too long, the burden of underquoting fell squarely on buyers who paid the price for artificial market hype.
By forcing transparency into the final week of a campaign, Victoria’s new laws respect buyers' time, bring integrity back to the auction process, and ensure that people can participate in the property market with confidence rather than caution.
