Underquoting is when a property is advertised at a price the agent does not genuinely expect it to sell for. It pulls a bigger crowd to the open home, but it wastes buyers’ time and it can leave vendors exposed.
For a seller it sounds harmless, even helpful. More buyers through the door feels like more competition. The problem is that buyers who came for a price they can afford walk away the moment the real number appears, and the genuine buyers feel misled before they have made an offer. Trust is the first casualty, and trust is what carries a negotiation.
NSW has tightened the rules on price representations for exactly this reason. A price guide has to be reasonable and supportable, based on evidence like recent comparable sales, not a number chosen to bait a crowd.
A fair price guide does more than keep you compliant. It attracts the buyers who can actually transact, it protects your reputation in your own suburb, and it sets up a cleaner negotiation. Competition that comes from a real guide is the competition that moves a price.
If you are weighing up a sale and want a price guide backed by evidence rather than a hook, that is the conversation we prefer to have.