How to Deal With Underquoting

​​The truth about underquoting in Victoria

If you’ve ever spent weeks inspecting homes, finally found one that ticks all the boxes, only to realise you never stood a chance — chances are, you’ve been stung by underquoting. And yes, it’s still happening in Victoria, even though it’s technically not supposed to.

As a buyer’s advocate who’s been doing this for over a decade, I’ve seen underquoting from every angle. Sometimes it’s unintentional. Sometimes it’s strategic. Sometimes it’s straight-up dodgy.

Here’s the reality: it’s not always black and white. But it’s definitely frustrating. So let’s unpack what’s actually going on behind the scenes — and how you can protect yourself.

What is underquoting, really?

According to Victorian legislation, underquoting happens when a property is advertised for less than:

1. The agent’s estimated selling price,
   
2. The seller’s asking price, or
   
3. A written offer the seller has already rejected.
   

In theory, this should keep things transparent. In practice, there’s a lot of wiggle room.

Why it matters

Let me give you a real example. Not long ago, I saw a townhouse quoted at $800,000 to $850,000. Just a few doors down — in the same complex, same layout, same condition — another one had just sold for $1.1 million with multiple bidders. There was no way that $850K was a realistic top range. It was a textbook case of underquoting.

That campaign ended up being investigated by Consumer Affairs after enough frustrated buyers complained. But here’s the thing — even when an agent gets caught out after the fact, it doesn’t undo the wasted time, money and effort buyers poured into chasing a property they were never going to get. That’s the real damage.

The “grey zone” of estimated selling prices

The biggest loophole is the agent’s estimated price — because that’s often based on “comparable sales,” and what counts as comparable is totally subjective. You’ll see agents using sales from six months ago in a softer market, or homes that aren’t even close in size or condition, just to justify a lower quote range.

Some are doing their best with limited data. Others are being lazy — or strategic. And as a buyer, you’re the one who wears the cost when you get lured to a property that’s well above your budget.

Why agents do it

Because it works. A lower price range brings in more buyers. More buyers = more competition. Even buyers who can’t really afford the property might fall in love and stretch themselves. And from the agent’s point of view, that’s a win.

Some agents are trying to do the right thing but feel stuck in a market where underquoting is the norm. If everyone else in the suburb is quoting low, quoting accurately makes their listings look overpriced by comparison.

Is it always dodgy? Not exactly.

There are also situations where no one really knows what a property is worth — unique homes, fast-moving markets, untested price points. And yes, vendors change their minds. An agent might quote based on a seller’s expectations, then the vendor gets cold feet mid-auction and bumps the reserve.

Still, the worst cases are clear. A seller says they want $1M, and the agent quotes $850–900K? That’s underquoting. A buyer offers $880K and the seller knocks it back — but the agent keeps quoting $800–850K? Also underquoting. These things happen. A lot.

So what can you do?

You can’t control what agents or vendors do, but you can get better at reading the play:

• Don’t take quote ranges at face value
  
• Check the Statement of Information — are those “comparable” sales actually comparable?
  
• Do your own sales research — the more you know the local market, the better
  
• Ask direct questions like:
  “Would the top of the range buy the property, assuming suitable terms?”
  “Has the vendor knocked back offers above the range?”

Stay calm, not combative — confronting agents aggressively can work against you

Bottom line

Underquoting is frustrating. It wastes buyers’ time, money, and emotional energy. And yes — the system needs work. But until it changes, your best defence is knowledge and strategy. Track the market. Get curious. Ask direct questions. And above all else, don’t let a dodgy quote range be the thing that derails your buying journey.

You don’t have to like the game, but you do need to learn how to play it. And if you want someone on your side who can read between the lines and help you navigate all the noise, I’m here for that.