Underquoting has long been one of the most frustrating parts of the Sydney property market. If you’ve ever fallen in love with a home only to discover that it was never realistically within your budget, you’re not alone. Buyers waste thousands of dollars and countless weekends inspecting properties that were underpriced from the beginning. Sellers don’t always see the problem — but buyers feel it keenly.

To address this, the NSW Government has begun public consultation on a significant upgrade to the state’s underquoting laws, aiming to make property price guides more accurate and restore trust during the buying process. These proposed reforms are some of the most substantial changes to real estate advertising rules in more than a decade, and if passed, they’ll reshape how properties are priced, marketed and monitored.

Below is a breakdown of what’s on the table — and why these changes matter.

Why NSW Is Rewriting the Underquoting Rulebook

The government has made it clear: underquoting continues to be a persistent problem. In 2024 alone, NSW Fair Trading issued more than 100 penalty notices for misleading price guides — and industry feedback suggests this barely scratches the surface.

The proposed reforms reflect strong buyer frustration and widespread feedback that stricter oversight is needed. They also draw on the success of Victoria’s reforms introduced in 2016, which have resulted in clearer pricing practices and millions in fines for non-compliant agents.

The overarching goal?
To create a more transparent, accountable real estate market where buyers can make informed decisions without being misled.

The Key Changes Being Proposed

1. Major Increase in Penalties for Underquoting

One of the most significant proposed reforms is a substantial jump in penalties. Under the new framework:

  • Fines could rise from $22,000 to $110,000,
    or

  • Three times the agent’s commission, whichever is higher.

This change targets both the individual agent and the business model behind aggressive underquoting. In other words, underquoting will no longer be “just the cost of doing business.”

2. Mandatory Price Guides in All Advertising

A property could no longer be listed without a clearly stated price or price range.
No price.
No “contact agent.”
No vague language such as, “Offers Above”.

This ensures buyers can immediately assess whether a property sits within their budget without guessing or relying on verbal indications.

3. Introduction of a Required “Statement of Information” (SOI)

Similar to the Victorian model, an SOI would become compulsory for every listing. It must clearly outline:

  • The agent’s estimated selling price

  • Recent comparable sales used to justify the guide

  • The suburb's median sale price

This opens up the agent’s reasoning to public scrutiny — giving buyers a real chance to see whether the guide aligns with the market.

4. Clearer Rules for How Price Estimates Are Calculated

Agents will be required to follow strict guidelines from NSW Fair Trading when determining price estimates. If the market changes or new comparable sales emerge, price guides must be updated promptly and transparently.

This is a step toward eliminating situations where the price guide remains unchanged despite new evidence that the property will achieve more.

5. Tighter Requirements for Advertising Accuracy

Under the proposed rules, agents would be prohibited from:

  • Advertising a price below a previously rejected offer

  • Maintaining an artificially low price after market interest indicates otherwise

This reduces the chance of buyers investing time and money into pursuing properties that will inevitably sell far above the advertised range.

6. Enhanced Record-Keeping Obligations

Agents will need to document:

  • All market feedback received

  • Every offer submitted

  • Any offer rejected

  • Reasons for adjusting the price guide

  • Relevant changes in market conditions

This level of documentation will make it easier for NSW Fair Trading to investigate, verify, and enforce compliance.

7. Expanded Powers for NSW Fair Trading

Fair Trading would have stronger tools at its disposal, including the ability to:

  • Publish details of breaches publicly

  • Require independent valuations at the agent’s expense

  • Temporarily suspend an agent’s ability to act on property transactions

These powers aim to deter repeat offenders and promote industry-wide compliance.

8. A New Offence for Failing to Meet Training Requirements

The reforms also address professional competency. Agents who skip ongoing training — including courses on pricing and compliance — could face penalties for failing to uphold mandatory education standards.

Why These Reforms Matter for NSW Homebuyers

The proposed changes are not just administrative adjustments. They directly impact your buying experience by reducing wasted time, money, and emotional energy.

More Accurate Price Guides Mean Fairer Expectations

When price guides genuinely reflect expected selling prices, buyers can:

  • Target homes that align with their budget

  • Avoid spending on unnecessary inspections, reports, or auctions

  • Make informed, confident decisions

Full Transparency Helps Buyers Compare Apples with Apples

The Statement of Information will provide something buyers rarely get:
clear, detailed reasoning behind the price estimation.

This levels the playing field by reducing the knowledge gap between experienced agents and everyday buyers.

Faster Updates Mean Fewer Surprises

If market interest pushes a property well above its guide, agents would be required to update price indications quickly — not keep them artificially low to draw in more buyers.

Improved Accountability Reduces Misinformation

With stronger oversight, stricter penalties, and public disclosure of breaches, agents have more incentive to play by the rules. Clearer boundaries around advertising also give buyers reassurance that what they see is closer to reality.

What This Means for Sellers, Investors and First Home Buyers

For Sellers

Transparent pricing leads to a more predictable campaign and prevents vendors from being misled about what to expect from a sale.

For Investors

Accurate price guides allow investors to assess yield, growth potential, and borrowing strategy with far greater confidence.

For First Home Buyers

For those already struggling in a competitive market, these reforms reduce wasted time and help build trust in the process — giving first-timers a clearer path forward.

How These Changes Affect the Role of a Buyer’s Agent

While the proposed reforms will help improve transparency, they don’t remove the complexity of property buying — they simply reduce one of the barriers. Price guides may become more accurate, but buyers will still need to:

  • Analyse true market value

  • Interpret comparable sales

  • Navigate auctions

  • Understand vendor and agent strategies

  • Assess property condition and limitations

  • Weigh long-term growth and suitability

  • Move quickly when competition is high

Underquoting reforms make the environment fairer, but they don’t make buying easier. Importantly, there are still valid ways that agents can work around these reforms.

A skilled buyer’s agent remains invaluable because:

  • We understand real pricing — not just quoted pricing

  • We negotiate based on deep market knowledge

  • We identify manipulation (even under more regulated advertising)

  • We help you avoid overpaying

  • We guide you on strategy, timing, and value

  • We recognise when price guides still don’t reflect true buyer competition

  • We save you from pursuing properties outside your realistic buying power

The new laws support transparency — but strategy, negotiation, and informed decision-making still require professional expertise.

Final Thoughts

The NSW Government’s proposed underquoting reforms represent a major step forward for buyers across the state. By strengthening penalties, increasing transparency, mandating documentation, and ensuring accurate price guides, the reforms aim to build a more trustworthy and navigable property market.

But even with these improvements, the buying journey remains complex.
Understanding true market value, interpreting price movements, and negotiating successfully still requires skill, insight, and experience.

If you're considering purchasing in 2026, working with a buyer’s agent ensures you’re not just relying on legislation — you’re supported by expert advocacy. So contact us today.