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NSW sellers face major property price shake-up as new laws kick in
NSW’s underquoting crackdown kicks in this month, making it harder for sellers to adjust price expectations during a campaign as new rules restrict agents’ ability to change selling prices.
NSW’s new underquoting laws will take effect on 17 November, introducing stricter price guide requirements for real estate agents as the state seeks to rebuild confidence in the property market.
Under the new reforms, “the days of ‘price on inquiry’ will be over”, requiring agents to add and update the selling price or price range to all residential property campaigns within a specified time frame.
According to Real Estate Institure of NSW (REINSW) CEO Tim McKibbin, while curbing underquoting is essential, the upcoming price disclosure reforms pose a high risk to sellers as they prevent agents from advertising a property below an offer the vendor previously rejected.
He said that the restrictions could disadvantage sellers who lower their price expectations during a campaign and exclude potential buyers who might otherwise be able to afford the property.
Under the new rules, agents must use the three most comparable sales to estimate a property's value and keep detailed records of the process.
When the estimated price changes, agents will have to update information in all online ads within one business day to ensure buyers know the property value and comply with the law.
Advertised prices cannot fall below the estimated selling price, the highest registered bid at a passed-in auction or a written offer rejected solely because it was too low.
For a property with a $900,000 estimate, agents could advertise it at $900,000, $950,000 or within a $900,000 to $990,000 range, but not at $850,000 or within an $850,000 to $950,000 range.
McKibbin said that the new rules did not allow enough flexibility for vendors facing unexpected changes that forced them to sell at a lower price.
He said circumstances such as illness, an urgent relocation or a sudden financial setback could prompt a seller to accept less than originally expected, but agents could be restricted from adjusting the advertised price to reflect those changed circumstances.
Additionally, McKibbin said confusion remains about whether a vendor can provide a revised price directly to a prospective buyer, even though the agent cannot.
“The advertising restrictions at the centre of the price disclosure reforms miss the practical mark. They unreasonably punish vendors without improving transparency for buyers,”
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“Unless amended, agents will be required to advertise their vendor’s property for a price above that which the vendor is willing to accept. In effect, they will be forced to make a price representation which no longer reflects the vendor’s position or the market,:” McKibbin concluded.
If breached, real estate professionals risk penalties up to $110,000 or three times their commission, whichever is greater, up from $22,000 previously.
The new state reforms also mandate agents to retain their agreements electronically.
Additionally, a second phase of the reforms will begin on 8 February 2027, requiring agents to provide a Statement of Information detailing the estimated selling price and the comparable sales used to substantiate the price guide.
Agents will be required to publish the Statement of Information with online property listings and make it available at inspections, allowing prospective buyers to review the pricing evidence before making an offer.
According to the Minns government, the reforms will give buyers greater transparency across NSW’s 150,000 annual property transactions and real estate agents more clarity throughout the sales process.
It said that the reforms build on earlier changes that doubled penalties for businesses engaging in dummy bidding to $110,000 and strengthened NSW Fair Trading’s enforcement and disciplinary powers.
Minister for Better Regulation and Fair Trading Anoulack Chanthivong said the reforms aim to curb underquoting and stop homebuyers “being taken for a ride”.
"Buying a home is one of the biggest financial decisions people make, and we know how overwhelming it can. Buyers deserve clear and reliable information when deciding what they can afford, so that they’re not wasting their time or their hard-earned money.
“Together with the tougher penalties and the regulator’s increased powers, we’re confident these reforms will make a real difference in people’s lives and create a fairer property market,” Chanthivong said.
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