Over the past few months, you’ve probably seen headlines about NSW cracking down on underquoting. This is where agents promote a property with a price that is well below what the vendor is willing to accept, in order to lure in buyers and create competition. It’s an extremely common and frequently used strategy, especially when selling by auction.
When you sign up with an agent, their Agency Agreement must include a “reasonable estimate of a property’s likely selling price” — and they must not advertise a price lower than that estimate.
Recently, the NSW Government has flagged reforms (as at November 2025) that would dramatically increase penalties — from around $22,000 to potentially $110,000 or three times the agent’s commission — as well as introduce more transparency around price guides and the introduction of a “Statement of Information”.
These changes are aimed at improving honesty and transparency for buyers. But there’s something else happening beneath the surface that very few people are discussing…
And in my view, this shift will impact sellers just as much (if not more) than buyers and I’m super excited about it!
After almost 35 years working in Sydney real estate, I’ve seen how much pricing strategies affect vendor outcomes, and I believe we’re entering a new phase — one where a long-standing issue in our industry is about to be exposed more clearly than ever before:
Over-quoting.
Underquoting frustrates buyers, but over-quoting often devastates sellers.
For years, agents have been winning listings by promising a price they know is unlikely — sometimes significantly above what the market will genuinely pay. It sounds flattering in the moment, but the consequences are predictable:
The campaign launches with an inflated guide;
Buyers think the property is overpriced and don’t inspect;
Open home numbers stay low;
Weeks pass with very little interest;
The agent starts “conditioning” the vendor down;
The price guide eventually has to be reduced (publicly);
Momentum is lost — and so is the opportunity for a premium result
This isn’t rare.
It’s a well-known and commonly used industry tactic.
And it’s the primary reason many vendors end up disappointed, emotionally drained, and financially worse off than they should be.
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So how do the new reforms encourage change?
It’s important to understand that the proposed reforms don’t prevent over-quoting directly.
An agent can still write an inflated estimate on the agency agreement if they want to win your business.
BUT … and this is the key:
➡️ The reforms make over-quoting far more visible, far more immediate, and far more damaging for the agent.
Here’s why:
Under the proposed reforms, agents must publish a price or price guide on all advertising;
That guide must align with the estimate they entered into the agency agreement;
If the guide is too high, buyer enquiry collapses almost instantly;
The agent is forced to publicly reduce the guide to generate more interest;
Competing agents use these “price drops” as evidence of poor practice;
Regulators view guide reductions as red flags;
Agents lose credibility very quickly.
In the past, over-quoting could be concealed behind vague marketing and slow adjustments. Now, it becomes obvious — fast.
So while over-quoting isn’t banned or regulated, it becomes incredibly risky and publicly more damaging to agent’s reputations.
Meanwhile, buyers haven’t adjusted yet
This is where things get interesting.
For decades, buyers have assumed underquoting is the norm. They automatically add around 10% to whatever price guide they see.
But if agents start quoting more realistically (because they’re being forced to), that old habit won’t disappear overnight.
Some buyers will still add 10% — and unknowingly rule out homes that are actually within their reach.
This creates a short-term dynamic where:
Buyer inspections may look lower than expected;
Days on market may increase;
Switched-on buyers may encounter less competition;
Well-priced properties may sell quietly without bidding wars;
The end result may not be as high due to less competition.
This “buyer recalibration gap” won’t last long…
But for now, it’s real — and it’s something sellers should understand.
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What this means for sellers right now
If you’re thinking of selling, this shift can work in your favour — if you choose the right agent.
Accurate quoting means:
Clearer expectations;
More trust from buyers;
Better campaign momentum;
Less likelihood of mid-campaign price drops;
A smoother, more transparent experience.
But if you hire an agent who continues to over-quote, you may now see the negative consequences far sooner — and far more publicly.
My role is to protect you from this
As a Vendor Advocate, I’ve always believed sellers deserve honesty, clarity and transparency. Pricing games are one of the biggest pitfalls in the industry — and one of the main reasons sellers ask me to guide them through the process.
These reforms won’t eliminate every problem, but they will bring more truth to the surface. And when expectations are realistic from day one, outcomes improve.
If you’d like help choosing the right agent or navigating these changes, I’m always here to support you.
Feel free to book a call with me here to discuss your plans – no pressure, just a genuine desire to help you achieve the best possible outcome.
Handled with heart and care
