Underquoting and Misleading Pricing: A Compliance Guide for Australian Agents

Underquoting remains one of the most common compliance risks in Australian real estate.

Even when unintentional, misleading price guides can breach Australian Consumer Law and damage an agency’s reputation.

💰 What is Underquoting?

Underquoting occurs when a property is advertised at a price lower than:

• The agent’s reasonable estimate

• The vendor’s expectations

• Comparable market data

🚨 Why It’s a Problem

Underquoting can:

• Mislead buyers

• Waste time

• Create false expectations

👉 And most importantly — it can breach Section 18

⚠️ Common Mistakes

• Using outdated price guides

• Ignoring recent comparable sales

• Setting low ranges to attract interest

• Failing to update pricing

✅ How to Stay Compliant

• Base price on current market data

• Update listings regularly

• Align with vendor expectations

• Keep records of pricing decisions

🧠 Pro Tip

👉 If you can’t justify the price — don’t advertise it

👉 Check your listings for pricing and compliance risks with Safe Listing AU before going live.