NSW has passed laws lifting maximum underquoting penalties fivefold, from $22,000 to $110,000, alongside an active enforcement operation targeting dodgy pricing. For Australian real estate marketers, accurate pricing is now a legal and brand imperative. Here is the read.
Underquoting is a pricing tactic dressed as a marketing one. NSW just attached a $110,000 reason to stop using it.
New South Wales has passed legislation that lifts the maximum penalty for real estate underquoting fivefold, from $22,000 to $110,000. It is part of a sweeping overhaul of agent conduct rules, backed by an active enforcement operation already targeting dodgy pricing practices across the state.
Underquoting is the practice of advertising a property below its likely selling price to draw a bigger crowd of hopeful buyers. It is a marketing tactic at heart, a deliberately low number designed to generate volume. NSW has just made that tactic a lot more expensive and a lot more likely to be caught.
The enforcement piece matters as much as the penalty. A bigger fine is a deterrent. A bigger fine plus an active operation hunting offenders is a different thing entirely.
Why it matters
For real estate agencies this is a marketing and brand question, not just a compliance one. Pricing is the first message a buyer sees, and a price that turns out to be bait erodes trust the moment a buyer works it out. In a market where reputation drives listings, getting caught underquoting is a brand wound, not just a fine.
NSW has raised the maximum underquoting penalty from $22,000 to $110,000, a fivefold increase backed by active enforcement.
The agencies that have always priced honestly just got a competitive edge. The ones who leaned on the tactic now carry a real liability on every listing.
What to do about it
The regulator has changed the maths on underquoting. The agencies that priced with integrity all along are about to look a lot smarter than the ones who did not.