Imagine spending weeks, even months, chasing your dream home, only to discover it’s way out of your budget. Frustrating, right? Well, that’s the reality for many homebuyers in New South Wales, where underquoting—a sneaky tactic used by some real estate agents—has become a major headache. But here’s where it gets controversial: the NSW government is stepping in with a bold plan to force agents to include price guides on all listings, and the fines for breaking the rules? They’re eye-watering—up to $110,000 or more. And this is the part most people miss: it’s not just about transparency; it’s about restoring trust in an industry where buyers often feel misled. Let’s dive in.
Underquoting happens when agents advertise a property for less than its estimated selling price or the owner’s asking price, baiting buyers into a bidding war. While it’s already against federal consumer law, NSW is doubling down with tougher regulations. The Minns government is consulting with the property sector to draft legislation that could hit Parliament next year. Labor’s goal? To ensure every listing includes a clear price or price guide, so buyers don’t waste time on homes they can’t afford. Sounds fair, right? But here’s the kicker: some argue these rules could stifle market flexibility or unfairly penalize agents for honest mistakes. What do you think—necessary protection or overregulation?
NSW Minister for Better Regulation and Fair Trading, Anoulack Chanthivong, emphasizes the need for stronger laws: ‘Our message is that we hear you. We’ve developed reforms to balance consumer protection with practical industry implementation.’ The proposed changes would empower NSW Fair Trading’s strata and property taskforce to crack down on misleading advertising and clean up the market. For instance, agents would have to publish a ‘statement of information,’ breaking down how the selling price was calculated—think comparable sales and suburb median prices. This isn’t just about fines; it’s about educating buyers and holding agents accountable.
The taskforce has already made waves, suspending the license of Sydney agent Joshua Tesolin for alleged ‘serious and repeated’ underquoting on over 100 properties. The government is also proposing to increase fines from $22,000 to $110,000—or three times the agent’s commission, whichever is higher. But here’s a thought-provoking question: Could these hefty fines drive smaller agencies out of business, or will they simply deter bad behavior? Let us know in the comments.
NSW is taking a page from Victoria’s book, modeling its reforms on laws passed there in 2016. Victoria recently tightened its rules further, requiring agents to use the most relevant local comparables when pricing homes before auction. In NSW, the final details will emerge after consultations with industry players and any amendments from the opposition or crossbench. But one thing’s clear: change is coming, and it’s sparking debate.
So, what’s your take? Are these reforms a win for homebuyers, or do they go too far? Share your thoughts below—we’d love to hear your perspective!
