Lot 3 of 6 · The price guide
Underquoting rules in NSW
Underquoting is when an agent advertises a property’s price, or tells a buyer it will sell for an amount, below the estimated selling price in the agency agreement with the seller. In NSW it is an offence, and an agent’s price guide, quoted or printed, may not go under that estimate.
Where the number comes from
When a seller engages an agent in NSW, the agency agreement must include the agent’s estimated selling price, and the agent must be able to show the evidence behind it, such as recent comparable sales, location, the property’s features and current market conditions. Fair Trading says the underquoting laws exist so buyers do not waste money and time on inspections, reports and auctions for properties that will be out of their price range.
The estimate does not have to be shared. A seller can instruct the agent not to disclose it, and then the agent gives no price information at all, in ads, in writing or out loud. Agents do not have to give the reserve price either, and at an auction the reserve may not be decided until the day.
What a selling agent may and may not say
May
- Give a price at or above the estimated selling price.
- Express the estimate as a range, if the top is no more than 10% above the bottom.
- Advertise a higher price when the seller wants more than the estimate.
- Show no price at all, and ask buyers to make contact for information.
May not
- Quote, in writing or in person, a price below the estimate in the agency agreement.
- Use “offers over”, “offers above”, or a price with a plus sign, such as $500,000+.
- Keep marketing at an estimate they know, or should know, is no longer reasonable.
- Quote the last bid at a passed-in auction if it was a vendor bid, unless they say it was one.
Any statement about likely price that an agent makes while marketing a property must be written down with the address, the price or range, and the date and time. When the estimate changes, the agent must tell the seller in writing, amend the agency agreement and take reasonable steps to update or withdraw marketing that no longer matches.
The 10% range, worked through
Fair Trading’s own example is a range of $500,000 to $550,000, which is acceptable, against $500,000 to $600,000, which is not. The same rule at a different price:
An estimate that starts at $1,200,000 may run to $1,320,000 at most, because 10% of $1,200,000 is $120,000. A range of $1,200,000 to $1,400,000 is about 16.7% wide, so it would breach the rule.
A sale price above the guide is not, on its own, a sign of underquoting: Fair Trading notes that intense competition between buyers can carry the final price beyond what could reasonably be predicted.
Penalties now, and the law that is coming
| Penalty | Now | When the later changes start |
|---|---|---|
| Penalty notice | $2,200 | Not covered on Fair Trading’s changes page. |
| Court fine | Up to $22,000 | Up to $110,000, or three times the agent’s commission, whichever is higher. |
| Commission and fees | The agent can lose the full commission and fees for the property. | The court maximum can be measured against the commission, as above. |
Sources: Underquoting guidance for property professionals and Changes to property and stock agents laws, both NSW Fair Trading. When the later changes start, Fair Trading will also be able to impose higher disciplinary fines: $27,500 for individuals and $55,000 for corporations.
The changes come from the Property and Stock Agents Amendment (Underquoting and Other Agent Conduct) Act 2026, in two stages.
- 29 June 2026, startedHigher maximum court penalties for many offences under the agents laws, and new disciplinary powers for NSW Fair Trading, including the power to have an agent’s estimated selling price verified, either by the licensee in charge or by an independent valuer.
- Expected towards the end of 2026Agents must base estimates on comparable sold prices under prescribed requirements and keep records of how they set them.
- Also then: a Statement of InformationAn approved form, with comparable sales, included or linked in online ads, displayed at inspections, and given to a buyer within 2 business days of a request for it or for the contract.
- Also then: a price on every adAds for residential property that agents arrange must carry a selling price or price range. A for-sale sign on or beside the property is exempt, and the regulations may add other limited exemptions, but a sign or other exempt ad that does show a price or range must meet the same rules. The advertised price, or the lowest price in a range, may not be lower than the agent’s estimate, the highest bid the agent knows, or ought reasonably to know, a registered bidder made at an auction where the property was passed in, or a written offer the agent knows, or ought reasonably to know, the seller rejected only because the amount was too low. Agents must update or remove ads to keep within these limits: within one business day online, and as soon as practicable for other ads.
The later date had not been announced when this page was checked on 8 October 2026.
The buyer’s side of the price guide
Fair Trading’s suggestions to buyers are practical: ask the agent to put the estimated selling price in writing and explain the seller’s expectations, research recent sales of similar properties, and keep dated records of conversations with agents. The NSW Valuer General’s Valuation Portal is a government service where land values and property sales information can be searched free of charge.
A buyer’s agent works in this same territory: among the services Fair Trading lists for them is researching properties to determine a fair price. Suspected underquoting can be reported to NSW Fair Trading online, on 13 32 20, or on its underquoting hotline, 1800 625 963, and Fair Trading asks for evidence to be included.