How to deal with Underquoting

The First Home Guidebook

In this episode, I unpack the murky (and often maddening) world of underquoting in Victoria—what it is, why it happens, and how you can protect yourself as a buyer. With over 13 years experience as a buyer’s agent, I’ve seen just how widespread and frustrating this issue is, and I’m breaking down not just the rules, but the real-world implications, examples, and strategies you need to know.

🔍 What I Cover:

• What underquoting actually is (according to Consumer Affairs Victoria)
• The 3 rules agents must follow when quoting a price
• Why Statement of Information pricing isn't always trustworthy
• Real examples of dodgy quoting practices
• Why some agents are “technically” following the rules but still misleading buyers
• How agents can use old or non-comparable sales to justify low quotes
• The grey areas where the law is hard to enforce
• What changes trigger a quote range update—and why that rarely happens
• Why you shouldn't assume all agents (or quote ranges) are dodgy
• Tips for decoding quote ranges before wasting time or money
• The uncomfortable truth: underquoting works (and that’s why it persists)
• The conflict agents face when trying to be ethical in an unethical environment

💡 Key Takeaways:

✅ Underquoting is illegal, but hard to prove

✅ The Statement of Information can be manipulated—do your own comparable sales analysis

✅ If a vendor has rejected an offer based on price, the quote range must be updated

✅ If rejected based on terms, it doesn’t mean they have to update the quote range

✅ If the vendor won’t consider pre-auction offers, the agent isn’t required to pass yours on

✅ Ask smart questions like:

“Can I confirm the top of the range would buy the property, assuming terms are acceptable?”

🛠️ What You Can Do:

✅ DO:

• Educate yourself on comparable sales
• Learn what legislation agents must follow
• Don’t be afraid to ask direct but polite pricing questions
• Track what properties are selling for, not just what they're quoted at
• Know your market and monitor sale trends

🚫 DON’T:

• Assume all agents are doing the wrong thing (but don’t take them at face value either)
• Start a fight with an agent during the negotiation phase—it can backfire
• Waste money on building inspections without clarity on the vendor’s expectations

🧠 Final Thoughts:

There’s no perfect solution to underquoting. It’s an issue of compliance, competition, and at times—plain old bad behaviour. But as a buyer, you’re not powerless. Knowledge is your best defence.

And remember my motto:

Never let a bad agent, or a bad vendor, come between you and a good property.

🔗 Resources:

• Consumer Affairs Victoria – Underquoting