Underquoting on the North Shore and Northern Beaches remains a pervasive problem in housing markets defined by severe scarcity and insatiable lifestyle demand.
Whether you are looking in Mosman, Manly, or the Upper North Shore, the market is fiercely competitive. As established buyer’s agents, we routinely see frustrated buyers wasting significant time, money, and emotional energy attending inspections and commissioning expensive reports, only to discover the advertised price guide was never realistic.
Underquoting: A Calculated Tactic
Underquoting is often more than just an error in judgment; it can be a calculated tactic. While our experience on the ground suggests most agents are doing the right thing, some do use a misleadingly low price guide to attract maximum interest, inflate the perceived sense of competition, and ultimately drive the final sale price higher for the vendor.
It is illegal behaviour that causes genuine stress for prospective homeowners across Sydney.
The Legislation: Why Fines Won’t Fix the Market
In response, the NSW government is cracking down on underquoting across the North Shore and Northern Beaches. Tough new rules are proposed to increase penalties for underquoting fivefold, with maximum fines potentially reaching $110,000 or three times the agent’s commission. Simultaneously, Victoria is tackling the issue by mandating that agents reveal the reserve price at least seven days before an auction.
These reforms, designed to enforce greater transparency, are a welcome step toward consumer protection. However, as strategic property advisors, we must deliver the unvarnished truth: Legislating honesty only mandates compliance; it doesn’t guarantee accuracy or confidence.
The Problem: Punishment Doesn’t Guarantee Prevention
These new laws attempt to fix a systemic problem by focusing heavily on punishment. The reforms aim to ensure agents maintain a realistic price guide, protecting buyers from wasting time on properties they cannot afford.
This is vital given that almost half of Sydney sales recently tracked sold for more than 10 per cent over the initial price guide. In premium markets like the Lower North Shore and Northern Beaches, where emotional attachment drives prices, this gap can be even wider.
The Core Conflict of Interest
The core conflict remains: the selling agent’s primary and non-negotiable loyalty is to the vendor, whose goal is to maximise the sale price.
The agent’s legally required “estimated selling price” must be a reasonable estimate. In a market where values are constantly rising, what constitutes “reasonable” is subjective and prone to exploitation within the legal framework—especially if the agent can argue the market shifted rapidly during the campaign.
Furthermore, the proposed NSW legislation isn’t expected to be implemented until sometime next year. This means the behaviour continues under the current, albeit less punitive, laws.
Your Defence: An Independent North Shore and Northern Beaches Buyers Agent
The fact is, even under the threat of severe penalties, you cannot rely on the seller’s representative to provide a figure solely calibrated to your best interest. Their incentives are simply misaligned with yours.
To navigate this, you need a strategy that relies on independent data, not the selling agent’s word.
At Sarah Kaye & Co., we confront the hard truths in real estate.
As your dedicated North Shore and Northern Beaches buyers agent, we promise to tell you what you need to hear, not what you want to hear. We provide independent, unconflicted valuations based on real-time market data, stripping away the marketing spin to reveal the property’s true value.
This commitment to radical honesty is the foundation of your protection. It ensures you stop chasing “underquoted” unicorns and start focusing on properties you can actually secure.
Conclusion: Confidence is Earned, Not Promised
While increasing fines to $110,000 for underquoting is a significant regulatory development, it is a reactive measure that focuses on punishment after the fact. For serious buyers, compliance is not confidence.
Confidence is the result of applying strategic rigour to every property decision. It is knowing that you have an independent advisor with the expertise to verify the true value, the discipline to adhere to a strategic limit, and the independence to tell you when the smartest decision is to exit the competition. We believe that trusted buying is reimagined when you base your decisions on transparent expertise, not the fleeting promise of a price guide.
Don’t let underquoting derail your property search. If you need an experienced advocate on your side, you can contact Sarah Kaye & Co. today.
