How Do We Fix Sydney’s Real Estate Selling System?
Last week, we explained what underquoting is and why it’s such a problem for buyers. This week, we’re asking the next question: how do we fix it?
Because when even real estate agents themselves are saying the system is broken, you know it’s time for change.
Following the Sydney Morning Herald’s Bidding Blind investigation, a new article explores potential solutions, and the growing frustration across the industry. Some agents are calling out the system. Others are blaming their competitors. And many are pointing the finger at NSW Fair Trading, which has long lacked the resources (and possibly the political will) to enforce meaningful change.
So, what needs to happen?
1. Publish the Reserve Price Before Auction
Right now, the reserve price, the minimum a seller will accept at auction, is kept secret from buyers. So even if a property is marketed with a price guide of $1.5 million, the seller might not be willing to sell for anything under $1.9 million. And that’s perfectly legal.
Publishing the reserve price in advance would change that. It would give buyers clear expectations, reduce wasted time and money on due diligence, and restore trust in the auction process.
NSW Premier Chris Minns hasn’t ruled this out, and it’s a change that buyers across Sydney would welcome.
2. Tie the Guide Price to the Reserve
Another proposed solution is to legally link the guide price to the reserve. That way, if a seller decides to increase their reserve, the agent is required to update the price guide accordingly. No more last-minute surprises on auction day. No more "price withheld" marketing games.
It would make the entire process more transparent and far more fair.
3. Start with Private Treaty, Not Auction
Many agents prefer auctions because they create urgency, draw bigger crowds, and pressure buyers into competitive bidding. But when vendors have unrealistic expectations, auction campaigns can become a show of smoke and mirrors.
One proposed fix? Start with a private treaty sale, a less pressurised campaign that can help sellers get realistic about price, while saving buyers the cost of building reports, legal reviews, and the emotional stress of bidding blind.
Once there’s alignment between value and expectation, an auction can still be an option, but it should never be the default.
4. Mandate Shared Building & Pest Reports
Doing due diligence in Sydney isn’t cheap. Buyers often spend hundreds on reports for homes they have no real chance of buying, especially in an underquoted market.
One idea from agencies like BresicWhitney is to provide a central building and pest report paid for by the vendor (or the agency), and offer buyers access for a nominal fee. If mandated, this would dramatically reduce buyer costs, improve transparency, and level the playing field.
5. Improve Agent Training and Accountability
Thanks to new national legislation, agents from other states can now operate in NSW without needing a state licence. The problem? Real estate laws and practices differ significantly between states, and not everyone is up to speed.
Better agent education and local training standards are essential. So is real accountability. One suggestion is to suspend agents found to be underquoting, forcing them to work under supervision until they prove they can price property properly.
As for the proposed “name and shame” register? Many critics say it wouldn’t do much, because if shame were enough to stop underquoting, it wouldn’t be happening at all.
Buyers Deserve Better
Sydney’s property market is already one of the most unaffordable in the world. The last thing buyers need is a system that works against them.
Whether it’s publishing reserve prices, making reports more accessible, or simply enforcing the rules that already exist, it’s time for real reform.
Because buyers deserve transparency, fairness, and the confidence that the price on the listing isn’t just a marketing hook, it’s a guide they can trust.
Looking for an Advocate in a Complex Market?
At The Acquiry, we work exclusively for buyers. We’re across the latest market movements, policy changes, and pricing trends, and we know how to navigate the games that some agents play. If you want clarity, strategy, and support throughout your property search, we’re here to help.
“Reach out today for an obligation-free chat. Let’s help you buy with confidence, not confusion.”