Why Price Guides Matter in Sydney
Sydney buyers rely on price guides to set expectations. But guides are just that — a guide — not a promise. In practice, they are often used as a marketing tool. Some agents provide realistic figures, but others set guides that look tempting while hiding the true expected selling range.
What is Underquoting?
Underquoting occurs when a property is advertised with a price guide that is deliberately lower than the vendor’s expectations or the likely sale price. The aim is simple: attract more buyers through the door.
The problem? Buyers can waste time and money pursuing properties they could never afford. It is frustrating, disheartening, and can put people off the market altogether.
Red Flags That Suggest Underquoting
Look out for these signs when assessing price guides:
• A property listed at a price guide that seems well below recent comparable sales in the same street or suburb
• An unusually low guide for a property that appears fully renovated and in high demand
• Repeated upward “guide adjustments” during the campaign as interest builds
• A guide range that feels vague, such as $1.8m–$2.2m, giving the impression of flexibility while keeping buyers hooked
How Buyers Can Protect Themselves
Smart buyers do not rely solely on an advertised guide. Instead, they:
• Research recent comparable sales data for the area
• Attend multiple inspections and auctions to see actual selling prices
• Engage a buyers agent who understands market trends and can provide accurate estimates
• Budget based on real market evidence, not just what is written in the ad
The Role of Regulator
Fair Trading NSW has taken steps to tighten underquoting laws, requiring agents to provide evidence for their quoted range. But enforcement is challenging, and grey areas remain. Underquoting hasn’t disappeared — it has just become more sophisticated.
Final Word: Be a Detective, Not a Dreamer
Price guides can mislead, but with the right due diligence, you can spot when numbers don’t add up. Don’t fall into the trap of chasing properties you cannot realistically secure. Instead, focus your energy where it counts.
For a deeper dive into why underquoting happens and how selling agents use it, read our detailed guide: What is Underquoting in Real Estate and Why Do Real Estate Agents Do It?
For more insights on Sydney’s property market, visit paulmulligan.com.au.
FAQs
What does underquoting mean in Sydney real estate?
Underquoting happens when a property is advertised with a price guide below the vendor’s expectation or likely selling price, designed to attract more buyers.
How can I spot underquoting in price guides?
Compare the guide to recent sales of similar properties. If the gap is too large or the guide keeps changing upward, underquoting may be at play.
Is underquoting illegal in Sydney?
Yes, it is. Agents must provide evidence of how they set a guide. However, enforcement is tricky and loopholes mean underquoting still occurs.
How can buyers avoid wasting time on underquoted properties?
Work with accurate sales data, watch auction results, and consider engaging a buyer’s agent to filter out misleading listings and focus only on realistic opportunities.
Paul Mulligan is the Principal Buyers Agent & Expert Negotiator at MULLIGAN Buyers Agents, Sydney. One of only two buyer’s agents in Australia to complete Negotiation Mastery at Harvard Business School, Paul combines advanced negotiation skills with over 30 years of market expertise to achieve outstanding results for property buyers. Passionate about helping clients avoid costly mistakes, he provides expert guidance throughout the buying process from search to settlement.
