NSW underquoting reforms could lock sellers into outdated price guides

Vendors who reject an early offer may be barred from advertising a lower price later, even after a job loss or illness forces an urgent sale.

NSW's mandatory price disclosure reforms, set to take effect in early 2027, could prevent vendors from advertising a price below an offer they have already rejected, even when personal tragedy or financial hardship forces them to lower their expectations.

The proposed laws could unfairly restrict agents and vendors from adjusting advertised prices during a campaign, even when changing market conditions or personal circumstances warrant a reduction.

The rules risk locking sellers into outdated price guides when the market no longer supports their original expectations.

Restrictions on price advertisements below a written offer which has previously been rejected solely on price could penalise vendors who genuinely revise their expectations.

A rejected offer reflects what a seller was unwilling to accept at a particular moment. It does not define what the seller will be willing to accept for the remainder of the campaign.

Early offers, lasting consequences

Vendors often field strong offers early in a campaign, before they fully understand the market's demand for their property.

If a vendor rejects an offer at that early stage, the new underquoting laws may stop them from listing at a lower price later, even if those motivated buyers have moved on.

In that situation, agents and vendors are forced into a price representation that no longer accurately reflects their position or the market.

Changes in market or personal circumstances could also force vendors to revise their expectations, which they would then be unable to convey to potential buyers.

A seller may lose their job, become seriously ill or face financial pressure that makes a sale urgent. In such cases, it is unreasonable for a seller to be prevented from responding to changed circumstances because of an earlier pricing decision becoming an enduring barrier to selling their home.

Property owners often sell for "unhappy reasons" and need the flexibility to adjust their expectations as their circumstances change. When personal tragedy hits, vendors are typically willing to take "whatever they can get, and the rigidity of the reforms could be really frustrating.