‘Playing games’: Landmark auction overhaul faces industry backlash

Consumer groups and industry agitators welcomed the proposed reform, saying better informed buyers could, in fact, lead to more successful auctions. They argued the only people who would be disadvantaged by the new laws were those agents currently “playing games” by providing misleading price guides. This masthead’s Bidding Blind investigation found that buyers were being routinely misled by inaccurate price guides, with an analysis of 26,000 Melbourne auctions finding more than half sold above the top of the advertised range. It’s not uncommon for properties to pass in well above the advertised guide. The new laws will require agents to publish the owner’s reserve price at least seven days before auction day or fixed-date sale. If agents fail to publish a reserve price, the property won’t be legally able to be offered for sale. “It’s just about fairness,” said Victoria’s Consumer Affairs Minister, Nick Staikos. “It means that vendors have a few weeks to properly assess the level of interest in their property, and seven days is a good amount of time for prospective buyers to make a final decision on whether they continue to pursue this property, or whether they decide to invest in a building inspection.”