NSW Steps Up Underquoting Enforcement, Nearly 80 Open Homes Covertly Inspected
NSW Fair Trading has stepped up its enforcement against underquoting in the property market. Over the past two months, inspectors from the Strata and Property Taskforce have covertly attended almost 80 open home inspections across NSW.
The operation took place ahead of the spring selling season. So far, 10 real estate agents have received fines totalling $20,900. Five warnings and 16 education directives have also been issued.
Minister for Better Regulation and Fair Trading Anoulack Chanthivong said, “Buying a home is one of the biggest financial decisions you can make, and people deserve confidence that price information is accurate and transparent.”
NSW Government: Open homes on notice in latest underquoting blitz
During the operation, Fair Trading inspectors posed as prospective buyers and attended open homes.
After the inspections, they reviewed agency sales records, vendor feedback and advertising materials. They checked whether the price information given to consumers was accurate and consistent with the agency’s own records.
The NSW Government said the operation identified alleged breaches related to underquoting, consumer protection and record-keeping.
What is underquoting?
Underquoting is when a real estate agent advertises or communicates a price that is lower than their reasonable estimate of the property’s likely selling price.
Under current NSW rules, agents must set a reasonable estimated selling price for a property and be able to support that estimate. When setting the price, agents should consider factors such as recent sales of similar properties, the location and features of the property, current market conditions and feedback from potential buyers.
If the estimated selling price is given as a range, the highest price cannot be more than 10 per cent above the lowest price.
Agents are also not allowed to use terms such as “offers over”, “offers above” or a price followed by a plus sign, such as “$800,000+”.
NSW Fair Trading: Price estimation and underquoting
NSW Fair Trading said underquoting can cause buyers to spend time and money on properties that are actually outside their budget. This can include attending property inspections, paying for property reports or attending auctions.
NSW Fair Trading: Underquoting guidance
The NSW Government provided an example from the latest enforcement operation.
At one open home, an agent told prospective buyers that a property was expected to sell for around $3.65 million.
However, NSW Fair Trading later found that the agency’s internal records estimated the property at between $4 million and $4.4 million. The online advertisement also used a $4 million search price. The agent was then fined for underquoting.
In another case, an agent received a warning because the purchaser feedback recorded and reported to the seller did not match the actual conversations with potential buyers during an open home.
The NSW Government said inaccurate purchaser feedback could mislead sellers about buyer interest and market price expectations.
NSW to further tighten underquoting rules
The latest enforcement operation comes as the NSW Government continues to strengthen regulation of property agents.
Some changes passed earlier this year started on 29 June 2026. These changes include stronger enforcement and disciplinary powers for NSW Fair Trading.
Further changes are expected to start towards the end of 2026.
Under the new rules, agents will be required to consider recent sales of comparable properties when setting or revising an estimated selling price. They will also need to prepare a Statement of Information that includes relevant property information and comparable sales.
Agents will also need to display the Statement of Information at open home inspections and include the document, or a link to it, in online property advertisements.
Once the new rules start, the maximum court-imposed penalty for underquoting will increase to $110,000, or three times the agent’s commission, whichever is higher.
NSW Fair Trading: Changes to property and stock agents laws
These new maximum penalties and Statement of Information requirements have not yet come into effect.
Under current NSW Fair Trading guidance, underquoting can result in a $2,200 infringement notice, while the maximum court penalty is currently $22,000.
NSW Fair Trading: Underquoting guidance
What can buyers do if they suspect underquoting?
NSW Fair Trading advises buyers to ask agents to provide the estimated selling price in writing and ask about the seller’s price expectations.
Buyers can also check recent sales of similar properties in the area and keep dated records of their communications with agents.
If buyers suspect underquoting, they can report it to NSW Fair Trading and provide evidence, such as screenshots of advertisements, emails, text messages or other records.
Consumers can lodge a complaint through the NSW Fair Trading website. They can also call 13 32 20 or the underquoting hotline on 1800 625 963.
NSW Government: Making an offer on a property
The NSW Government also launched the Name and Shame Register earlier this year.
The register publicly records disciplinary and enforcement action involving real estate agents, strata managers and property agencies.
Consumers can check the register before dealing with an agent or agency. The NSW Government said the register has recorded around 118,000 visits since it was launched.
