Ep. 51 | HUGE Changes Announced To Underquoting In Victoria

In May 2025, Victoria's property market will face its most dramatic regulatory change yet: agents will be required to publish the vendor's reserve price seven days before auction. It's a bold move designed to combat underquoting, but will it actually protect buyers, or will it just create more problems than it solves?In this episode of Buying Melbourne, Tristan Larkin and James Rankin break down the newly announced reserve price disclosure law and its potential impact on buyers, sellers, and agents across Victoria. With auction clearance rates sitting at just 47.3% and the market already struggling, they question whether this half-baked policy has been properly thought through or if it's just another PR stunt from a government desperate to be seen doing something.Tristan and James share insights from conversations with multiple real estate agents, both the "ethical" ones who already quote reserves within range and the underquoters who will need to completely change their strategies. They explore the unintended consequences, strategic loopholes, and the fundamental question: can you really force a vendor to commit to a number a week before they've seen who shows up to bid?What You'll Learn:Why publishing reserves seven days early could actually hurt vendors more than help buyersHow reserves frequently change mid-auction based on buyer turnout and bidding behaviorThe loophole that lets agents still underquote by starting low then raising the reserve laterWhy vendors legally can't be forced to sell even if bidding reaches the published reserveHow this policy will lead to buyers being hounded more aggressively by agents for budget informationWhy agents with different quoting philosophies view these changes completely differentlyThe practical complications around reserve updates and vendor decision-making with incomplete informationIf you're planning to buy or sell in Victoria after May 2025, understanding how these new reserve disclosure rules will change auction strategy, negotiation dynamics, and market behavior is absolutely critical.👋 About the ShowBuying Melbourne is Melbourne’s go-to podcast for buyers who want to make smarter property decisions. Hosted by Tristan Larkin and James Rankin from Tomii Property, we bring you expert tips, market insights, and real stories from the frontlines of real estate, finance, and construction. Auctions, rates, off-markets - we’ve got you covered.🔗 Resources & LinksJoin our mailing list & read the blog → www.tomii.com.auSubscribe for weekly auction results → www.tomii.com.au/auction-resultsFollow Tristan on TikTok & Instagram → @tristanlarkinFollow James on TikTok & Instagram → @james__rankin