Who sets the number
The selling agent works for the seller. Their job is to get as many buyers as possible through the open home and then get the highest price from them. A guide that looks affordable does the first part of that job very well.
The law says the guide has to be reasonable. It doesn't say the guide has to be where the house will sell. That gap is where buyers get hurt.
The rules by state, as at October 2026
| State | What the rules say | What's changing |
|---|---|---|
| NSW | The agent's estimated selling price must be reasonable and based on comparable sales. Ads can't use "offers over" or "$XXX,000+". In a range, the top can't be more than 10% above the bottom. A seller can tell the agent not to disclose a price, and then no price can be given at all. | The Property and Stock Agents Amendment (Underquoting and Other Agent Conduct) Act 2026 lifted penalties from 29 June 2026. The main underquoting rules, including a price or range in most ads and a new Statement of Information, are expected to start towards the end of 2026. |
| VIC | Agents can't advertise below the seller's asking price or reserve, a written offer the seller rejected as too low, or the agent's estimated selling price. | From 1 October 2026 the Property Price Statement replaces the Statement of Information: a price or range of up to 10% with no "from" or "+", three comparable sales and the suburb median. For auctions and fixed-date sales from 16 October 2026, the reserve must be published at least 7 days before. |
| QLD | For a property going to auction, the agent can't give buyers a price guide at all. A comparative market analysis can be given only with the seller's written agreement. | No change announced. |
| SA | The lower figure in an advertised price can't be below the agent's estimate in the sales agreement. The top of a range can't be more than 10% above the bottom, and symbols like "+" aren't allowed. | No change announced. |
Rules change, and they have changed a lot this year. A solicitor or conveyancer can confirm what applies to a specific sale.
Why guides still anchor low
Even inside the rules, a guide can sit below the likely result.
- The estimate is a judgement. Two honest agents can be tens of thousands of dollars apart, and the one who quotes lower often wins the listing because more buyers turn up.
- The floor is legal, not likely. The law stops an agent advertising below their own estimate. It doesn't stop the estimate being cautious.
- Ranges let the bottom do the work. Buyers remember the first number. Anchoring is well documented: the first figure you hear shapes every figure after it.
- Competition does the rest. A good house with five interested buyers can sell well above any honest estimate made three weeks earlier.
"Offers over", "price on application" and ranges
- "Offers over". Banned wording in NSW, and not allowed in a Victorian Property Price Statement. Where you still see it, read it as the lowest number the seller might discuss, not where the house will land.
- "Price on application" or "contact agent". In NSW this can mean the seller has told the agent not to disclose a price (most ads will need a price once the new rules start). In QLD, an auction listing will say a price guide can't be given, because the law says so. Either way, treat it as "unknown" and do your own work.
- Ranges. The top of the range is usually the more useful number. If the comparables sit above it, the range is a door-opener.
How we check a guide
We never start from the guide. We start from sales.
- Pull recent comparable sales. Same pocket, similar land, bedrooms and condition, ideally in the last six months. In Victoria the agent's Property Price Statement lists three. We check whether they really are the closest three.
- Adjust for this house. Bigger block, better aspect, renovated kitchen: up. Main road, flood overlay, steep driveway: down.
- Check the pocket's typical price and pace. Days on market and stock levels tell us whether buyers are competing or waiting.
- Compare. As an example: if adjusted comparables point to $820,000 to $860,000 and the guide is $750,000 to $800,000, the guide isn't the price. It's an invitation.
- Ask the agent what sits behind the estimate. A good agent will tell you. A vague answer tells you something too.
A guide tells you where the agent wants the conversation to start. Comparable sales tell you where it's likely to finish. Neither is a valuation.
That comparables-based range becomes the starting point for a walk-away price. Our due diligence checklist covers the rest of the checks, and the calculators show what the holding cost looks like at the likely price, not the advertised one.
Sources
- NSW Government, "Price estimation and underquoting when selling a property", updated July 2026
- NSW Fair Trading, "Changes to property and stock agents laws", updated July 2026
- Consumer Affairs Victoria, "Understanding property prices and underquoting for buyers", updated October 2026
- Queensland Government, "Auctioning a property", July 2024
- Queensland Government, "Buying property at auction", October 2024
- Legal Services Commission of SA, Law Handbook, "Underquoting", accessed October 2026
- Consumer and Business Services SA, "Crackdown on dodgy land agents", 2017
General information only. Nothing on this site takes into account your objectives, financial situation or needs, and it is not financial, credit, tax or legal advice. Past performance is not a reliable guide to future performance.