A price guide is one of the most sensitive parts of a Victorian sales campaign. Set it too high and buyers may not inspect. Set it too low and the campaign risks misleading buyers, damaging trust and raising underquoting concerns. The best strategy is evidence-based and clear from the beginning.

Consumer Affairs Victoria’s underquoting guidance says underquoting can occur when a property is advertised below the estimated selling price, below the seller’s asking price, or below a price already rejected by the seller. That means price strategy is not just a marketing decision. It is a compliance issue.

The Statement of Information is central. Agents must prepare one for each residential property they are engaged to sell. It must include an indicative selling price, which can be a single price or a range of up to 10 percent. It must also include comparable property information or a statement explaining why fewer than three comparable sales were used.

For sellers, the first step is to understand the evidence. Comparable sales should be genuinely comparable: location, land size, dwelling type, condition, renovation quality, parking, school zone and timing all matter. A renovated home should not be guided only by unrenovated sales, and a compromised property should not lean on superior examples.

Buyer psychology also matters. A guide should encourage inspection from realistic buyers, not attract people who have little chance of purchasing. Crowded open homes may feel good, but they are not useful if most buyers are below the likely selling level.

The guide may need updating during the campaign. If a written offer above the guide is rejected, or if new information changes the expected selling price, advertising and buyer communication may need to change. Sellers should expect their agent to explain when and why updates are required.

A strong price guide does not promise a final result. It sets a fair and reasonable campaign position based on available evidence. Auction competition, buyer depth and negotiation can still move the final price, but the starting point should be defensible.

Trust is part of value. Buyers who believe the campaign is fair are more likely to stay engaged, review documents and bid or offer confidently. A realistic guide may not flatter the seller as much as an ambitious number, but it often creates a stronger campaign.

This article is general information only and doesn’t take your personal circumstances into account. It is not financial or legal advice. Before acting, consider seeking advice from a qualified professional such as a licensed broker, conveyancer or solicitor.