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Written by Mark Ruttner on . Posted in Blog

Agents Guide or Statement of Information
Worth reviewing by consumers and the Victorian State Government

Interestingly enough I have been asked by two separate clients to review levels of value/purchase price for two properties within inner south eastern suburbs of Melbourne.

The findings from my point of view strongly suggest that underquoting is still evident, and to be honest, provides a very bad outcome for agents that use this process of creeping from the first week of marketing to the last week of marketing. In both instances in my investigations, the sales used were totally inappropriate, with the Statement of Information guide to value being some 20% out from a current market level of value. Noting that the quoted sum reflects underquoting.

I strongly suggest that the State Government and the REIV, in my opinion, could simply mandate that the value stated within the Statement of Information reflects the assumed current market value and should not be changed to satisfy guidelines. One value range throughout the marketing period, and in very rare circumstances only reviewed should the market vary.

Agent’s Responsibility – Statement of Information (SOI) (Under REIV guidelines and Victorian legislation)

The obligation to provide a Statement of Information (SOI) arises under the Estate Agents Act 1980 (Vic) and associated regulations with guidance provided by the Real Estate Institute of Victoria (REIV). Enforcement sits with Consumer Affairs Victoria (CAV).

Statement of Information Victoria example showing indicative price and comparable sales Melbourne

1. When an SOI is Required

An agent must prepare and make available a Statement of Information when marketing:

  • Residential property for sale
  • Vacant residential land
  • Off-the-plan residential property

It is required:

  • At the start of the marketing campaign
  • For both private sale and auction
  • Online and in hard copy

2. What must be Included

(a) Indicative Selling Price

Either:

A single price; or

A price range (no more than 10% difference between lower and upper figure)

Example:

$1,000,000 – $1,100,000 (too wide)

$1,000,000 – $1,090,000 (within 10%)

The indicative price must be:

  • Reasonably estimated
  • Consistent with the agency agreement
  • Not lower than the vendor’s asking price

Underquoting property prices Melbourne example with misleading price range comparison

(b) Comparable Sales

  • At least 3 comparable properties sold in the last 6 months
  • Located in the same or similar area
  • Similar in land size, property type and features

If 3 are not available:

  • Provide fewer and explain why

Sales Must:

  • Be genuine arms-length transactions
  • Be accurately described
  • Include address, sale date and sale price

(c) Median suburb Price

  • Median house/unit price (as applicable)
  • Source of data (e.g., REIV data, Corelogic, etc.)

3. Display Requirements

The SOI must be:

  • Displayed at open inspections
  • Available to prospective buyers upon request
  • Uploaded online where the property is advertised (e.g., realestate portals)
  • Kept up to date if price changes

Failure to update the SOI when:

  • The indicative selling price changes
  • The vendor revises reserve (auction)
  • New comparables are relied upon

May constitute underquoting.

4. Underquoting Provisions

Underquoting laws in Victoria are strict.

An agent must not:

  • Advertise below the estimated selling price
  • Use outdated comparables
  • Use inferior properties to justify a lower range
  • Represent price expectations inconsistently

The indicative price must reflect:

  • The agent’s reasonable estimate
  • The vendor’s minimum acceptable price
  • Feedback received during campaign (if materially altering expectations)

Comparable property sales Melbourne SOI requirement showing recent sales data example

5. Record Keeping Obligations

Agents must retain:

  • Evidence supporting estimated selling price
  • Written vendor communications regarding price
  • Comparable sales analysis
  • Internal pricing worksheets

These records may be requested by Consumer Affairs Victoria.

6. Penalties for Non-Compliance

Consumer Affairs Victoria may issue:

  • Infringement notices
  • Fines
  • Prosecution
  • Reputational damage

Breaches commonly arise from:

  • Overly optimistic low ranges
  • Failure to adjust after strong early interest
  • Poor comparable selection

7. Practical Risk Areas in 2026 Market

In a shifting Melbourne market:

  • Rapid price corrections create SOI lag risk
  • Auction reserves moving late in campaign create compliance exposure
  • Vendor pressure to “start low” remains high risk
  • Limited comparable evidence in prestige or unique property segments

This is particularly relevant in areas like Toorak, Caulfield and inner north where heterogeneity complicates comparability.

8. Best Practice (REIV Guidance)

  • Document pricing rationale at listing stage
  • Update comparables mid-campaign if needed
  • Keep written evidence of vendor instructions
  • Treat the SOI as a compliance document – not marketing collateral

SOI compliance checklist Victoria real estate laws Consumer Affairs guidelines

To discuss any related property matter herein or other issues, please contact
Mark Ruttner, Managing Director

mr@fvg.com.au 0411 419 674