Overquoting happens when a real estate agent advertises or quotes a price range they know is below the actual selling price or reserve. The goal is to attract more buyers to inspections and create competitive bidding at auction. In Victoria, overquoting is illegal under the Estate Agents Act 1980. In other states, the rules vary but the practice is widespread.

Why Agents Overquote

Agents are paid on commission when a property sells. More bidders at auction means more competition, which means a higher sale price and a bigger commission. Quoting a lower range gets more people through the door — even if most of them are wasting their time because the property is well outside their budget.

How to Spot an Overquoting Agent

• The property passes in repeatedly: If comparable properties keep passing in at the same price range, the agent is consistently quoting below the vendor’s reserve.
• The quote range is unusually wide: A range of $800k-$1.2m is a red flag. Legitimate quote ranges in Victoria must be no wider than 10% of the lowest quoted price.
• Comparable sales don’t support the quoted price: Research recent sales of similar properties in the same suburb. If the comps are all $200k above the quoted range, you’re being overquoted.
• The agent changes the quote late in the campaign: A quote increase in the final week before auction is a sign the original quote was too low.
• The agent is vague about the vendor’s expectations: A trustworthy agent will give you a clear indication of the vendor’s price expectations. Vague answers about what the vendor wants to achieve is a warning sign.

What to Do If You Think You’re Being Overquoted

1. Research comparable sales yourself using sold data on Domain, realestate.com.au or the Collings portal.
2. Request a Statement of Information from the agent — in Victoria this is legally required and shows the three most comparable recent sales.
3. Report suspected overquoting to Consumer Affairs Victoria.
4. Get independent advice before bidding — a property advisor can assess fair market value before you commit.

How a Property Advisor Protects You From Overquoting

Collings Property Advisory provides independent comparable sales analysis and fair market value assessments for $4,500 + GST. We tell you what the property is actually worth before you bid — so you never overpay based on a misleading quote range.

FAQs — Overquoting in Real Estate

Is overquoting illegal in Victoria?

Yes. Under the Estate Agents Act 1980, agents must quote within a range no wider than 10% of the lowest quoted price and must not quote a price they know to be below the vendor’s reserve. Penalties apply.

What about other states?

NSW, QLD and WA have their own rules but enforcement is generally weaker than Victoria. Buyers in all states should do their own comparable sales research regardless of the quoted price.

Can I make a complaint about an overquoting agent?

Yes. In Victoria, complaints go to Consumer Affairs Victoria. In NSW, complaints go to NSW Fair Trading. In QLD, the Office of Fair Trading handles complaints.

Want an independent assessment of what a property is really worth before you bid? Contact Collings Property Advisory — $4,500 + GST, fixed fee.