Updated 26 October 2026 Are there any differences between Property Valuation and Market Appraisal? How do they differ? What are the things you need to know? Difference between Market Appraisal and Property Valuation The difference between a Market Appraisal vs Property Valuation is an important concept that all property buyers and home buyers must understand. While they may sound the same and probably look similar, there is a fundamental difference. What is a Property Appraisal? A Property Appraisal gives you an indication of price, from a Real Estate agent's perspective. It is how much the property can sell for in the Melbourne property market in the prevailing market conditions. What is a Property Valuation? A Property Valuation is a formal, legally recognised assessment of a property's market value, prepared by a licenced, qualified independent valuer. This valuation is used by a bank or lender to process your mortgage or wealth. The property valuation is also used by the legal profession to determine the value of the property for compensation and settlements such as divorce, separation, etc. Difference between Property Appraisal and Property Valuation The table below summarises the difference between a Property Appraisal and a Property Valuation: Property Valuation Property Appraisal Purpose Satisfy banks, courts, tax authorities, insurance Give an estimated selling price for buyers/sellers Who Provides It Certified practising valuer (CPV) bound by Australian Property Institute (API) rules Sales agent or buyers advocate Legal Standing Admissible in court; relied on by lenders and solicitors Not legally binding Cost $500–$800 for standard Melbourne residential property Often low-cost or free Typical Uses Mortgage lending, refinancing, deceased estate, family-law settlement, capital-gains tax, SMSF audits, insurance replacement For Sellers to set an asking price or vendor strategy. For Buyers to define buying, negotiation or bidding strategy. How do Real Estate Agents do a Property Appraisal? To determine a property value, the licenced buyer agents or real estate agents perform property appraisal by firstly inspecting the property and utilising their knowledge and understanding of the property, location, demand, supply, etc, in the specific property market. Because this is based on one agent's understanding of so many parameters, it is normal to see this value differ from agent to agent. If the appraisal is independent with no hidden agenda, the number should be relatively similar, and reflective of the property in the prevailing market condition. How do Property Valuers Value a Property? Property valuation is a lot more formal and is a legal procedure to determine the value of a property. It is carried out by a licenced valuer who is an independent professional and works on behalf of banks and other lenders. Property valuation takes a closer look at the property and its quality and features to arrive at a more accurate value. However, because most tend to work on behalf of the lenders, their property valuation tends to be more conservative to protect the interest of the lenders. It is usually lower than the price you could get in the prevailing property market. Property valuations are not free and can cost you around $500-$800 whereas market appraisals can usually be obtained for free from any licensed Real Estate agent. Are There Free Market Appraisals? There are a few places where you can get "free" market appraisals, but they each come with their own catch. There's no free lunches, unfortunately. Real Estate Agents. Your real estate sales agent friends would be able to give you an idea of what the price it could sell for, if they are local to the property and are familiar with the property and location. But do understand of the values are often tainted by the sales agent's agenda. Online Appraisal. Some real estate related websites provide a free appraisal for the property. However, this is your worst option and least accurate appraisal. We had seen these number vary by between $300,000 - $500,000 for the same property. Use this only if you are desperate for a free appraisal, then add/subtract up to 30% to the results. Perform Your Own Price Assessment. With enough experience and knowledge of the property and local market condition, buyers can do their own appraisal. However, experience tells, us buyers always have a certain degree of biasness. Part 1: Free Market Appraisals from Real Estate Sales Agents How are Sales Agents Using Appraisals to their Advantage Property buyers are usually not aware of how the valuations/appraisals are done. Sales agents often prey on this to present numbers which benefit their sales agenda. The number can be higher or lower than what it is, depending on whether they are trying to get your listing or trying to sell the property. Our buyers advocates often see differences of between $200,000 to $300,000. In one case, the difference is as high as half a million dollars. It is often impossible for inexperienced buyers to decide which appraisal or valuation is more accurate. What are There Differences in Property Appraisal Values? As explained above, if the differences in appraised values are small, it probably suggests the appraisals are accurate. However, when the differences are huge, it can be confusing and misleading. When there is huge difference, it is important to find out why, and which value is more realistic. There might be something unique in the house. A gold bar hidden somewhere? Or the property might have a hidden termite infestation or structural issue. These are probable reasons why there is this big difference in property appraisal value. Why are Sales Agents Appraisal Controversial? What is the Hidden Agenda? While most sales real estate agents attempt to make an honest attempt to put a value to a house, many are driven by the need to get a listing. The number of listings is one of the sales agents' Key Performance Indicators (KPIs) in the market. Their performance in the agency is determined by the number new properties they can list for sale. So, in order for real estate sales agents to increase the number of listing they have, they need to convince property owners to let them list and sell their properties. And what else could be a better incentive than to convince sellers their properties are worth a premium ($100k?) above everyone else, and to promise property owners that only they can sell their property for top dollars. Thus market appraisal (include price guides and statement of informations) from sales agents can seldom be trusted. Understanding the real value involves guesswork and adjustments based upon the experience (and agenda) of the sales agent. Part 2: Free online Property Appraisals Where Can we Get Free Property Valuations/Appraisals? So, if buyers cannot fully trust the appraisals from the agents, and they are unable to do the appraisal independently, can they trust the free property valuation websites? Yes, there are some websites who claimed to be powered by AI to provide free property appraisals. However, as explained above, time and experience, plus a visit to the property to understand the condition, etc, is needed to individually assess and appraise a property. The AI would probably be better at learning. However, has the AI physically visited the property to understand the property condition? No. Thus, websites which provide free property valuations are nothing more than a algorithm in a computer program calculating the average of properties sold in the area. Numbers which our buyers advocates have seen, can often differ by a few hundred thousand dollars. How Accurate are Free Online Property Estimates? Free online estimates might give you a rough idea of the value of a property, but our experience tells us the values can differ by hundreds of thousands for the same property. So, professional real estate Buyer's Advocates like us have never trusted those numbers. We always take those numbers with a pinch of salt. Those free valuations are more often than not, generated by simply computing an average of all properties in the suburb, and do not consider if the property has any unique selling points or of there are any problems with the property Part 3: Can Buyers Do Their Own Property Appraisal? Buyers definitely can do their own appraisal. You will need a good understanding of the market conditions, and skill set and discipline to keep the appraisal neutral. The more experienced and neutral you are, the more accurate your appraisal will be. In addition to knowing the market conditions in the area, you will also need to: know the profile of buyers in the area understand what buyers in the area are looking for know the potential of the property It is critical to ensure you are neutral. Make sure your assessment is impartial and you have not added a few thousand dollars to your estimate, because you liked the property (personal biases). The most critical thing you need to know is, your personal appraisal is only good for your own consumption. If you're not a licenced real estate agent, your appraisal is worthless. Where can You Get an Independent Property Appraisal? If you're are receiving conflicting property appraisals values or valuations, worry not. There are other ways of knowing the market value of the house. Property Appraisals and Valuations can also be done by: Property valuations provided by an independent valuer Estimates provided by experienced buyers advocates or buyers agents Why Agents Charge for Accurate Appraisals? As you would appreciate above, time and experience is essential to individually assess and appraise a property. It can take the real estate agent doing a detailed property appraisal at least an hour or two (or faster of the agent already know the area well) before they have enough information to determine a fairly accurate appraisal. Thus, fairly accurate reports are usually not free. Most property consultants and advisors charge a small fee of about $200 for an accurate property appraisal. At Concierge Buyers Advocates, we are confident of the accuracy of our Property Appraisal Report. The report is completed by our Melbourne based buyers advocates, and we guarantee the accuracy with our Money Back Guarantee. Are There Any Low-Cost High Accuracy Property Appraisal? Yes there are low cost but highly accurate property appraisals. Our low cost property appraisal service gives you that peace of mind. For a low fee of $138, we guarantee the accuracy of our reports. It is the first in the industry. No one else is confident enough to guarantee them like we do. Accuracy Guaranteed Property Appraisal This independent give you a good estimate of the fair value of the property, given you the confidence of knowing what the property is worth and buy without overpaying. If the sold price of the property is more than 10% different from our appraisal, we will refund the cost of the report. Yes, and if our appraisal is inaccurate, you get the report along with the property's sales history, proprietary and confidential information on the property and suburb for free. The insider information on the suburb is yours to keep and will help with your other purchase. Many buyers have benefited from our low fee, accuracy-guaranteed independent appraisal reports. Buyers like yourself can now have the confidence of know what to pay, without breaking the bank. If you’re buying your property or selling your property, consider speaking to one of our senior buyers advocates. Our agency principal, Rayson, has over 20 years of property buying, selling, and investment experience and would be happy to give you a hand.

Updated 26 October 2026 When it comes to house and land packages, opinions can be polarising. Some so-called "experts" advise against them, claiming house and land packages are to be avoided. While at the same time, you might have also heard how buyers who had bought one had NEVER regretted their decisions. Same product, two very different opinions. Is there any truth to any of these 2 very different buyer experience? What are the facts and myths that buyers need to know? As independent Buyers Advocates in Melbourne, our clients frequently come to us with misconceptions about new house and land packages. While there are some truths, under specific circumstances, most beliefs are just misinformed or facts which had been manipulated to serve a sales agenda. Some of these stories can even be considered malicious. People who had regretted their House and Land purchase are more often than not, a classic case of parrot regurgitating what they've heard. Someone heard a bad experience and repeated the story to someone else, hiding some essential facts, sensationalised it and repeated it, without further disclosures. So, let us get to the bottom of this and let's spend the next 5 minutes to sift through the noise together and uncover the reality. House and Land Package vs Established House with Land The first crucial distinction every buyer must understand, is the difference between a new House and Land package and an established house with land. These two may sound the same, but they are different. While both ultimately provide you with a house with a land, the market dynamics is different, and so is the buying process. Each option also has their own "ideal buyer" with different demographics and goals. So, before property buyers buy one, it is essential that they understand what the differences are, the market that they serve and buy these properties with their eyes open and arm themselves with the right information. At Concierge Buyers Advocates, our buyer focused real estate buyers agents specialise in helping property buyers buy the right properties they want quickly and confidently, ensuring their interests are protected throughout the whole buying process. This article is put together to answer home buyers questions and it aims to give property buyers some fact based reasons why a new house and land home may be a viable option for them, and why it may not be the right type of property for them. What is a House and Land Package? First, let us discuss what types of properties are typically considered a house and land package. A "House and Land Package" is simply a house with a land. It is very similar to an established (existing) house on a land. The difference is, with a House and Land Package, you typically buy a land, then you engage a builder to build a house on it. It is usually a 2-part contract. One purchase contract is for buy the land, and you need a separate build contract to build the house. You will also need two different mortgages or loans. One mortgage for the land, and a second loan (usually construction loan) to build the house. But not all house and land packages are structured the same way. There are several variations with the land portion of a House and Land Package, depending on the developers, builders or marketers involved in the sale. Some common house and land package is put together includes: Approved Builders with Curated Designs: Some developers, estates and land contracts may force you to build with one of their approved builders who have a selection of curated designs, to help maintain a certain "look and feel" within the estate. Single Builder Requirement: Some developers may mandate that you only build with a specific builder. Flexible Builder Choice: Some developers let you decide who you want to build with. You buy the land from them and you are free to select your own design from your preferred builder. These conditions are typically outlined in the contract, and it’s crucial to thoroughly read and understand the contracts. If you’re unsure, you should always consult a property lawyer who is well-versed in the real estate industry to review the contract for you. What is an Established House with Land? In contrast to a house and land package, an established house with land is a single purchase of a property where the house is already built on the land. This type of property is can also be referred to as a resale home or a second-hand home. When you buy an established house with land, the process is generally more straightforward. You make one purchase transaction, and you typically only need one mortgage for the property, not two. The house is ready for immediate occupancy, so you can move in right after the purchase is complete. This option may appeal to buyers who prefer a quicker and simpler purchasing process or buyers who want to see and evaluate the home and its surroundings before making a decision. Established homes in matured housing estates also often come with matured landscaping and fully developed neighbourhoods, which can be appealing for some buyers. What is the Problem with House and Land Packages? There is nothing inherently wrong with house and land packages; they are simply designed to cater to different groups of buyers. House and land packages are often designed for first-time homebuyers or buyers with limited savings, offering a lower entry point into property ownership or property investment. Like any purchase, it is crucial for buyers to fully understand what they are buying. The issue is, many buyers have been misled by property marketers and sales agents into purchasing house and land packages without proper consideration of the buyers' needs. It is not their fault though. Real estate sales agents and marketers are legally obligated to serve the interests of the sellers and developers, not the buyers. Real estate sales agents and project marketers' primary goal is to sell what they must sell, which may not necessarily align with what you need. And they have no interests to ensure the property aligns to your buying or investment goals. This dynamics often lead to situations where buyers are pushed into purchases that don't meet their requirements. Sales agents are paid by the developers, and their priority is to meet the developers' interests. They do not usually have the buyers' best interests at heart because buyers do not pay them. They are paid by the developers and builders. Thus, they are legally required to look after their best interests. To protect yourself, it’s essential to approach these purchases with a clear understanding of the product and it is also crucial that you assess if these new house and land packages aligns to your own needs. This article delve deeper into the legal obligations of sales agents and explain how you can ensure you are making informed decisions that best suit your circumstances The Real Issue with House and Land Package House and Land Packages are just a product range. There is nothing inherently wrong with them. The primary issue with house and land packages lies in the sales process, not the product. Buyers are unfortunately exposed to the sales tactics, when you buy direct from the project marketers or sales agents. Sales agents are there to sell these house and land packages, and they prioritize the interests of the sellers rather than the buyer. Their goal is to sell what they have available, often without thoroughly understanding the buyer's needs. Sales agents are adept at convincing buyers that the product they offer is the right fit, even if it isn’t. If you're not paying for their services, they are simply selling you what they have, not what you need. As a result, buying directly from a sales agent or marketer can often lead you to buying unsuitable house and land packages. Very often, there could be better property options elsewhere, but these agents is not going to recommend them because they aren’t compensated to do so. For instance, when a house and land package might not suit your needs at all, selling a new house and land package to someone looking for an established home is akin to selling an IKEA flat-pack dining set to someone who wants a ready-built set. The mismatch can lead to dissatisfaction and regret. To avoid this, it is crucial to conduct thorough research and possibly seek advice from independent real estate professionals who understand your needs and work in your best interests. This ensures you are making an informed decision and selecting a property that truly suits your requirements. Advantages of a House and Land Package Why should buyers consider a house and land package in Melbourne? As mentioned earlier, House and Land packages are meant for a buyers with different needs. Here are some key advantages: Lower entry cost. House and land packages are typically situated in new estates where land costs are generally lower. This makes it an affordable option for first-time buyers or those with limited savings. Lower stamp duties. In Victoria, stamp duty is calculated based on the value of the land. Since you are purchasing vacant land, the stamp duty is significantly lower compared to buying an established house, resulting in considerable savings. If you are a first home buyer, you could be paying zero stamp duties. Brand New House. One of the most appealing aspects of a house and land package is the opportunity to live in a brand new home. You can even change the floor plan and option it to your pleasure. Modern Energy Efficiency Rating. These homes often come with modern features, including the latest 7 Star Energy efficiency rating. Additionally, buyers can often customize the layout and design to suit their personal preferences, creating a home that truly reflects their style and needs. Considerations Before Buying a House and Land Package Like anything, you should always know and understand what you are buying. And a house and land package is no exception. Here are a few things you need to consider. Comparatively longer lead time. Unlike an established house, where you can take ownership of the house and move in within a couple of months, it could take up to a year (or two) before you move into your new home. You will usually need to wait a few months, to a year or 2 before the land is titled. Then, it is another 6 to 9 months for the build and a further 3 to 6 months for the paperwork, certifications and permits. There are some builders who can build in shorter time frame, and we have tested and confirmed 4 months is consistently achievable, by good scheduling of work. Ask us for me info. Committing to a house you cannot see and feel. With a house and land package, you are committing to a property that you cannot see or feel until it is completed. Unlike an established house, you cannot walk through the space to get a sense of the layout and quality before you buy. This means that the final fit, finish, and quality might not meet your expectations. To mitigate this risk, you should choose your builder carefully and do thorough research. Online reviews and testimonials can provide valuable insights, though keep in mind that people are more likely to share negative experiences. Or if you are unable to do the due diligence on the builder, we might be able to recommend packages from our tried and tested builders. We scrutinise the builder's build quality, fit and finish, and we only recommend builders whom are up to our standards. Most House and Land Packages are in new estates. And most of these new estates are in locations where amenities, shops, schools, transport might not be matured yet. They will be coming, just not now. It may also mean the traffic and public transport will be immature initially, and you will encounter frequent traffic jams, road works, unpredictable public transport (if any) for a while. But, as the estate matures, the situation and services will improve. Have a look at matured estates around Melbourne. We've yet to see one with bad traffic and transport. The best thing with a maturing estate? Price Growth! Your equity in the property will grow significantly, much more than other estates, because it is coming from a lower base and the price has a lot more room to grow. Read the phenomenal growth of newer estates such as Clyde and Tarneit. You don't know the developer and builder. One of the biggest challenges for buyers is not knowing the developers and builders behind their new home. It’s crucial to research the companies you are dealing with. Ask around and look for feedback from other buyers. However, remember that big-name retail builders often outsource construction tasks to the lowest bidder for the job. This usually affect the quality, while making it difficult to coordinate tasks, thus leading to long build time. Smaller builders, on the other hand, might offer more personalized service and closer supervision of their contractors, often resulting in better quality. If you are unable to do the due diligence on the builder, we might be able to recommend packages from our tried and tested builders. We scrutinise the builder's build quality, fit and finish, and we only recommend builders whom are up to our standards. Myths about House and Land Packages Now, let's look at the facts and debunking the myths of house and land packages. Myth 1: "You are Paying the Agent's Commission When You Buy a House and Land Package." The Facts: Sales agents or marketers for house and land packages are usually paid around $20,000 when they sell a house and land package. While some premium house and land packages or harder-to-sell old stocks may offer a higher commissions of around between $40,000-$60,000, these are the minority. The majority fall into the $20,000 range. However, selling agents generally cover marketing costs of these house and land properties, not seller or the developer. So, their actual income from selling one house and land package may only be around $15,000. I'm sure buyers would have heard some property "experts" claiming that buyers are footing the new house and land agents' commission. Let's now look at the numbers, and here is how it compare to a typical established house: House and Land Package: Considering an average house and land package costing around $700,000 in Melbourne, The $20,000 commission represents approximately 2.8% of the total price, an amount that the seller isn’t receiving. Established House with Land of Similar Size and Condition: A comparable house in an established Melbourne suburb could cost around $1.5 million. With an average 2% agent commission, this equates to about $30,000. In addition, sellers pay marketing, advertising, and staging expenses that can add another $10,000–$20,000, totaling $40,000–$50,000 in selling costs. And these are deducted from the $1.5 million you paid for the property. These $40,000-$50,000 is what the seller isn't receiving. How does this compare to the $20,000 commission to the House and Land agent? Established House with Similar Price: Now, what if we compare the $700,000 house and land package to a similarly priced $700,000 established property? The selling price would include the 2% commission of around $14,000, plus marketing, advertisement, staging of $10,000-20,000, totalling $24,000-$34,000 going into the ads and agent commission. Now, isn't this amount very similar, if not more, to the commission for a new House and Land package? Looking at these comparisons, it becomes clear that the commission on a house and land package is on par with or even lower than that for established properties. While you may hear otherwise, the facts is clear. The commission paid to the house and land agent is not any higher than the commission and expenses paid to the sales agent of an established house. Myth 2: House and Land Packages have Poor Value. The Facts: As discussed earlier, house and land packages cater to different buyers. The ideal House and Land buyers are owner occupiers who do not want to lock in too much cash in a home, and they do not mind staying a bit further away from the CBD. Buyers of House and Land Packages have never and should not be worried with yield or capital growth in the short term. Post Budget 2026 tax changes, new builds are the only properties to buy, if you still want to keep the possibility of using negative gearing. Most of these house and land packages are in locations which typically offers less yield and growth in the first few years of ownership, thus making them more suitable for owner occupiers than investments. But once the location and amenities matures, the growth is comparable to other location in the area. It is also possible to see such new estates performing better than surrounding suburbs, as the properties are newer, with modern designs and have better facilities. And because they are more expensive, they tend to attract buyers with higher income. Unfortunately, sales agents, being sales agents, do not consider if the property suits the buyer's needs. Many sales agents are promoting these packages as investment products, when they are not really designed to be one. Many agents disguise this with sneaky promotions such as "Guaranteed Rental Returns" or "Guaranteed Rental Yields" to promote these house and land packages as investment products. Once these rental guarantees expire, some buyers may be disappointed if their expected returns don’t materialize, often blaming the product itself rather than the marketing agents who sold it under misleading pretenses. It is similar to selling IKEA flat packed furnitures to buyers expecting quality custom made furnitures. Same purpose, but different. Unfortunately, the resulting negative experiences is often sensationalized, especially in the media, which favors headlines that attract attention. What to Consider If You Already Own a House and Land Package If you had purchased one of these packages, know that property value can still grow over time. Newer suburbs like Tarneit and Clyde, where house and land packages were once affordable, are now seeing established properties selling for $1 million or more—doubling their initial purchase price just five years ago. If you are expecting immediate positive cash flow, or immediate equity growth, a house and land package may not be the best fit. However, if you’re looking for longer-term growth or you are an owner-occupier, these packages can offer excellent value. Recently, many of our clients’ house and land packages have seen increases of $20,000–$50,000 by the time construction is complete. If you’re specifically looking for an investment-grade house and land package, we’ve identified a few that meet investment criteria—feel free to reach out to discuss them further. Four Things You Should Do When You Buy a House and Land Package With the considerations raised above, you should always take your time to do your research. These 4 pieces of homework will help ensure you know what you are buying: Know the developer: Research the developer’s track record, reputation, and previous projects. Know the builder: Investigate the builder’s experience, reliability, and quality of work. Inspect finished products: Look at other properties built by the developer and builder to gauge the quality and craftsmanship. However, do remember that large retail builders sub-contract the constructions on a project basis. Thus, their quality can vary widely from build to build. Ask tough questions: Don’t hesitate to ask detailed questions about timelines, costs, quality guarantees, and any potential issues. Help with buying a House and Land Package Navigating the process of purchasing a house and land package is daunting, but you don’t have to do it alone. Our experienced buyers advocates and agents are here to assist you every step of the way. We have carefully curated a selection of high-quality house and land packages, as well as off-the-plan properties, tailored for both home buyers and investors. Why Choose Our Buyers Advocates and Agents? Our team consists of experienced property professionals who are not only experienced in real estate but also knowledgeable in construction. When selecting house and land packages or off-the-plan properties, we go the extra mile to only recommend builders who can ensure quality and reliability. Here’s what sets us apart: Thorough Vetting Process: We conduct comprehensive site visits to inspect the properties firsthand. This allows us to evaluate the build quality and ensure it meets our high standards. Open and Direct Communication: We engage directly with management teams and key site supervisors of the builders. This helps us understand their construction processes and ensure they are capable of delivering top-notch homes. Quality Assurance: Our selection process includes a thorough assessment of the builders' past projects, ensuring they have a proven track record of delivering high-quality homes. Examples of Our Selected Packages and Sites We have a range of selected house and land packages, many of which sell quickly due to high demand. Our website provides a glimpse of these options, showcasing the variety and quality we offer. However, this is just a snapshot, and there are many more properties that we have not yet listed. Some examples of these selected packages and sites are here. There are many more which we have yet to list, as they sell fast. The site should give you an idea of what is available. Get in touch with us via Whatsapp or email to find out what's available and suitable for you. Conclusion - House and Land Packages In conclusion, the decision to purchase a house and land package depends on your individual circumstances and objectives. It may or may not be the right choice for you. At our agency, we understand the importance of ensuring that any property investment aligns with your goals. Through detailed workshops and brainstorming sessions, we work closely with our clients to determine whether a house and land package is suitable for their needs. However, in general, here's what you should consider: Yes, if: Limited Funds: If you have limited financial resources, a house and land package can offer an affordable entry point into property ownership. Desire for Homeownership: If you aspire to own your own home, a house and land package can provide the opportunity to customize a new property to your liking. Comfort with New Estates: If you don't mind living in a new estate for a few years and are willing to wait for amenities to develop, a house and land package could be a viable option. Long-Term Investment: If you're not concerned with short-term yield or growth and are looking for long-term capital appreciation, a house and land package may suit your objectives. No, if: Urgency to Move In: If you are unable to wait for the house to be built, a completed new home or established home would be a better option. Investment Purposes: If you intend to use the property as an investment, particularly if you expect instant growth or positive cash flow, a house and land package may not be the best choice unless it's in a mature location. Immediate Cash Flow: If you're seeking immediate positive cash flow or intend to manufacture growth through renovations or development, a house and land package may not meet your requirements. Plan to Manufacture Growth: Obviously with new houses being brand new, and often built to maximise the usage of the land, there are not much allowance to value add and flip for a quick profit. If you are still unsure if a house and land is right for you, we encourage you to reach out for a free consultation with one of our buyers advocates. We'll provide expert advice, explain the nuances of house and land packages, and help you determine the best property type for your needs and goals. Get in Touch To find out more about available properties and find the one that suits your needs, get in touch with us via WhatsApp or email. Our team is ready to provide personalized advice and guide you through the buying process, ensuring you make an informed and confident decision. Contact Information Free Consultation: Schedule a free consultation with one of our buyers advocates to discuss your property goals. WhatsApp: Whatsapp Email: email Website: https://rightpropertyrightprice.com.au Let us help you find the perfect house and land package that meets your needs and exceeds your expectations.

When buying properties in Melbourne and Australia, doing your due diligence is important. This is to prevent you from being caught out by surprises. One of the due diligence will include understanding the "material facts" which can influence your buying decision. Doing it properly, can save you from any nasty (and expensive) surprises. In this article, we will discuss what a "material fact" is, what it includes and why they are important in your real estate buying decisions. What is a Material Fact in Real Estate? A material fact in real estate is any information that can affect a reasonable person's decision to buy, sell, or rent a property, and / or the price they would be willing to pay. Sellers and their sales agents have a legal and ethical obligation to disclose these material facts, which can include significant property defects such as structural issues and / or pest or termites infestations, environmental risks such as flooding or bushfire history, and even details about past violent crimes, death on-site or drug use on the property, etc. In Victoria, vendors and their agents have a legal duty to proactively disclose known material facts—not just when you ask. Why Material Fact Disclosure Matters in Melbourne and Victoria. In Melbourne and Victoria, Buyers are protected by 2 disclosure frameworks. These two frameworks forms the backbone of the need for disclosure, and though penalties apply if these aren't fulfilled: Victorian rules on material facts. Consumer Affairs Victoria (CAV) issues guidelines explaining what a material fact is and when agents/vendors must disclose it. The duty is proactive once a buyer indicates interest, and concealing a material fact is an offence. - Consumer Affairs Victoria Australian Consumer Law (ACL). All agents and vendors must avoid misleading or deceptive conduct in trade or commerce (ACL s.18). Even if a fact isn’t on a list, omitting it can still be misleading in context. - Australian Contract Law What is Considered a Material Fact in Real Estate? A material fact is contextual. It depends on the property, market and what a reasonable buyer would care about when they are deciding if they should buy the property. CAV’s guidance and common practice include examples such as: Structural problems or significant defects: subsidence, major water ingress, termite damage, non-compliant or unapproved works. Orders, notices or legal issues: building notices, council orders, outstanding compliance, unregistered easements. - Legalfinda Safety and cladding risks, asbestos or contamination (including history of meth labs). Natural hazard and environmental risks: flooding risk, bushfire risk, overland water flow, landslip. Neighbourhood or external impacts: planned road widening, rezoning, or developments likely to materially affect value. Stigma/“history” where relevant: serious crimes, deaths or events that a reasonable buyer or buyer agent would likely treat as important. Key point: There’s no exhaustive list. The Material Fact guidelines are probably intentionally designed this way. If a fact would likely influence a reasonable buyer’s decision or price, it should be treat as material. - Consumer Affairs Victoria Material Fact vs Section 32 (Vendor’s Statement) In Melbourne and Victoria, the Section 32 sets out prescribed information (title, rates, easements, notices, etc.). In Victoria, these property related information are disclosed in the Section 32, which accompanies the Contract of Sales. But not every material fact appears in Section 32, and a “clean” Section 32 does not excuse an agent from disclosing other important issues. Think of it this way: Section 32 = mandated disclosures under the Sale of Land Act (Vic) Material facts = everything else the vendor and sale agent knows, that is not mandated in Section 32, that a reasonable buyer would want to know. EG, structural and / or termites issues. If a Vendor Statement and disclosure is incomplete or misleading, buyers may have rights to rescind or claim damages. Speak to your lawyer the moment you discover issues. Material Fact vs Property Price Statement In Melbourne and Victoria, the Property Price Statement (formerly called Statement of Information) explains how the agent derive and justify the listing price. It lists what the agent considers the comparable properties in the area, which they had used determine the price. But the agent's choice of comparable properties is still largely dependent on the agent's prerogative, and may not have considered the any material facts, especially if they are not visible. Property Price Information = mandated explanation of how the agent thinks the price is justified. Material facts = everything else the vendor and sale agent knows, that is not mandated in Section 32, that a reasonable buyer would want to know. EG, structural and / or termites issues. When Must Agents Disclose the Material Facts? Under CAV’s guidelines, vendors and sales agents must disclose all known material facts as soon as a buyer shows genuine interest (e.g., requests a contract or Section 32, books a second inspection). Knowingly concealing a material fact can attract penalties, and in some circumstances criminal sanctions. Agents also must not mislead by silence under the ACL. Not being asked the question is not a valid reason for not disclosing a material fact. If the overall impression would likely mislead without a key fact, they should disclose it. - Australian Contract Law Case study: Structural Issue Affecting a Property Being Sold in Melbourne Take this very common example. The sales agent knew about a structural issue affected the property they were selling in Melbourne. This could be a disclosure from the owner or a problem discovered by due diligence conducted by the buyers agents. Should they disclose it to all subsequent buyers? Yes they have to. It is not an option. But... How do most agents and owners handle Material Disclosures? Most will keep that under wraps until asked. And even when asked, they might disclose something else minor, hoping you will trust them and let your guard down. We often come across such practices across Melbourne. We'll discuss some recent examples our buyers advocates came across and how we help our buyers avoid issues. Case 1: The Leaning Townhouse of Forest Hill We came across this townhouse in Melbourne eastern suburb of Forest Hill. The agent presented the property as "about to be sold", leaving us with little time to organise a formal inspection. This sales agent appears honest and helpful when asked if there are any structural issues with the property. He said someone else had done a inspection and the roof was flagged as leaking, which the vendor will fixing before settlement. However, our buyers advocates picked up something not quite right about the property during inspection. And the agent's non verbal body language seems "off" when asked about the structural issue. We made our offer, subject to further due diligence. The agent wasn't happy, but we stood our ground. We're here to protect our buyers, not make a quick purchase, unlike other agencies who benchmark their agents. Our independent inspection showed the townhouse was leaning at an angle, and that explained the grabbing doors. We withdrew our offer and the agent was too keen for us to confirm our withdrawal in writing. He's already got a 2nd buyer lined up to buy it. Good luck to them. He's probably told them the usual "our finance fell through" excuse. Case 2: Timber Failure in Ringwood This probably has safety concerns. Another purchase in Ringwood, Melbourne, show a failed roof truff. The timber support truss had failed and broke, in this property which our buyers were interested in. This is pretty dangerous as there are signs other structure is compensating for the broken truss. We submitted our finding to the agents and owners and withdrew our offer immediately. The agent knew about the roof failure and were still marketing the property without that disclosure being upfront for a few more weeks. It was subsequently withdrawn from the market. Case 3: Wavey House in Ringwood Stumping and foundation issues were rather easy to spot. While they might sound concerning, most aren't expensive to fix and isn't as bad as it looks. However, this particular weatherboard house in Ringwood was quite major. There were stumping across several spots and it would be costly. This was flagged as a structural issue to the agent, and we walked away. In this particular case, just because there is a structural issue, does not mean it will affect all buyers. Developers would not mind these material disclosures as they would be demolishing it and rebuilding anyway. So, the same material fact may affect one group of buyers but might not be applicable to the other. The tenants are still living in there, and were at serious risks of roof failure. Does the same material fact affect every buyer? Short answer is no. Case 3 above explained this. But that is not a valid reason for not disclosing the material fact. Common Examples in the Melbourne Context Some examples which can happen in buying properties in Melbourne includes: A charming period home in a flood overlay—recent overland flow through the yard after storms = material. A townhouse with unapproved deck—no final sign-off; council notice pending = material. High-rise with combustible cladding rectification—special levy scheduled = material. A home used as a clandestine drug lab—even after remediation, the history may be material, especially if a buyer asks. Next door development approved—overshadowing and privacy impact = material to many buyers. Deaths on property—both natural and otherwise = material to many buyers. The same fact may be material some buyers, while it may not bother others. Remember the the definition is contextual to the property and buyer. Consider these examples : Building structural defect. While most buyers would be concerned with structural defects and termite infestations, this may not be material to developers, as they intend to redeveloped it anyway. Drug labs, death on site. While this might not be material to developers, more sensitive buyers might be concerned with past history, so, the developer of the new property has the duty to disclose this when they are selling their newly built property. House with overlays. Such overlays would usually not affect home buyers. However if the buyer intends to redevelop or renovate the property, the vendor and sales agent have the duty to disclose the overlays, even if this may change their buying decision. How Buyers Should Protect Themselves Ask direct, written questions. Email the listing agent: “Are there any material facts we should know about—structural, legal, environmental, historical, or otherwise, that could affect value or our decision to buy?” Keep the written trail. Request evidence. If the agent makes assurances (e.g., “works are approved”), ask for permits, final inspections, or engineer’s reports. Something that was "built more than 7 years ago" doesn't remove the need for permits, even though the sales agent and vendor do not need to produce the permits in the Victorian Section 32. Permits in such cases are more about ensuring the new structure are built to the prevailing building code, ensuring safety and integrity of the structures. Run your due diligence. Do your own building and pest inspections, council planning searches, flood and bushfire maps, owners corporation minutes & budgets, and title searches. We can never rely on the completeness of the material disclosures from vendors and sales agents. From experience, even when agents have the obligations to disclose all material facts, reassurances from sales agents are worth nothing. Things to get "forgotten", "missed" or they might "not be aware" of. Escalate early. If something feels off, ask your conveyancer / solicitor to review the contract and Section 32 before you bid or sign. Use professionals. If you are unfamiliar with Section 32, local Victoria / Melbourne based buyers advocates can help identify concerns in the disclosures (e.g., incomplete Section 32, suspicious renovations, strata underfunding) and push sales agents for disclosure, saving you time, money and stress. What if a Material Fact was Not Disclosed? If you learn about a material issue after signing: Seek legal advice immediately. This is where having the settlement done by a solicitors would excel over conveyancers. Solicitors would be able to escalate this immediately, without the need to engage a third party. Depending on the situation, you may be able to rescind the contract, seek damages, or negotiate price / terms before settlement. Courts have ordered strong remedies where omissions materially affected a buyer’s decision. - Legalfinda Depending on the situation and timing, you might be able to rescind and walk away without penalties. Our clients had been able to walk away without penalties with our interventions, eg, a recent building inspections showed a townhouse complex of 10 units is tilting. Buyer’s Quick Checklist (print this) □ Ask, in writing: “Any known material facts?” □ Review Section 32 & contract with your conveyancer. □ Order building & pest (and specialist reports if needed). □ Check overlays & hazards (flood/bushfire; council plans). □ For strata: obtain OC minutes, budgets, levies, insurance. □ Confirm approvals for renovations/additions (final sign-off). □ Document everything (email trail). How a Melbourne buyers advocate helps At Concierge Buyers Advocates, we combine street-level experience with forensic due diligence to uncover material facts before you commit. Our builder trained buyers advocates spots glaring issues during our initial assessment of the property during onsite inspections, and review Section 32 disclosures, check overlays and pressure-test agent claims against evidence. When something doesn’t stack up, we flag it—and either adjust price / terms or walk you away. Because our builder-trained buyers advocates can spot and identify concerns and issues early in the process, our clients are able to save significant time and costs from further opinion by professionals. Buying in 2025 and 2026? Get an independent second opinion before you bid or buy. We’ll help you avoid overpaying, avoid surprises, and buy with confidence. Sources Consumer Affairs Victoria, Preparing to sell your property – Material Fact Guidelines (definition & duty to disclose). - Consumer Affairs Victoria Sale of Land Act (Vic) updates and material fact disclosure obligations (penalties & proactive disclosure). - Burke Lawyers Australian Consumer Law s.18 – misleading or deceptive conduct (applies to real estate). - Australian Contract Law Section 32 (Vendor’s Statement) obligations (rescission if inadequate). - elaminelaw.com.au Disclaimer: Information provided here and anywhere in our website is general information only, and should not be taken as financial or legal advice. It does not take your personal circumstances, needs and requirements, etc, into consideration. You should always seek formal legal and financial advice for solutions to suit your individual circumstances.

Everyone hopes the process of buying their property in Melbourne is as smooth as butter. While experienced buyers are usually confident in selecting and buying properties on their own, it is common to see buyers caught off-guard when the purchase runs into issues. Sad to say, because the buyer has already sign a legal contract to buy the house, problems during property settlement can be significant and can cause major complications. After your offer is accepted in Melbourne, several things can still go wrong during the settlement and conveyancing process. Some common issues includes financing, building and pest inspections, delays in settlement, and potential disputes. It's crucial to know what the potential pitfalls are and take steps to mitigate them. In this article, our Melbourne Buyers Agents will discuss the common problems that can go wrong in the property buying process, and show you strategies to protect yourself. Based on our buyer agents’ experience, over 80% of property purchases come with unexpected problems. Some are minor. Others are serious — and expensive. The good news? Most of them can be avoided or resolved — if you know what to look for and how to act quickly. What are Common Problems During Property Settlement? What can go Wrong AFTER Your Offer Has Been Accepted and How do You Prevent Them? So, you've found your property, you've submitted your offer and your offer has been accepted. Congratulations! But is your property buying process over? Absolutely Not. In fact, that is only half the battle won. And the other half is where the most stressful and costly problems begin. What can go wrong here can be issues that bite you the hardest. Pre-offer, the vendor has something they want to sell, and you have the leverage to negotiate and make your demands accepted. Once your offer has been accepted, this leverage instantly disappears! Just like buying a car. It is a lot easier to negotiate with the salesperson before signing. But the moment you sign on the sales contract, you become a liability, and your negotiating power is gone. Any issues that arise is YOUR problem. Buying your house works the same way; you instantly lost that negotiation power after the contract is unconditional. The balance of power shifts completely. Why Post-Offer Problems Hurt the Most This is the stage where experience truly matters. Without it, buyers can fall into traps that cost tens of thousands of dollars — from unexpected contract terms, hidden issues discovered during inspections, to financing delays or vendor non-compliance. Experience can help prevent you from regretting the purchase. Or if the inevitable happens, Experience can help you navigate the problems and negotiate with the vendor and sales agent. The bulk of tough problems happens POST Purchase. AFTER your offer has been accepted. The risks are real, and the consequences can be financially painful. We’ll walk you through some of the most common post-offer issues our buyers advocates have helped resolve — and more importantly, how we fixed them for our clients. Learn what can go wrong, and how to avoid costly mistakes with expert support on your side. 1. Final Inspection Shock: Tap Leak & Flooring Damage What happened: A client was excited to move into their first home — until our buyers agent discovered the slow leak under the laundry sink during the final inspection. We suspected the leak happened when the vendor removed their washing machine, without realising the tapware had aged and was leaking. By the time this was discovered during the final inspection, the tap had been leaking water-damaged flooring across half the living room. Mould had also started forming and this necessitated the removal of walls to treat the mould and and rebuilding it. It was a tiny little blotch in the flooring that triggered this investigation. The vendor initially denied the leak and suggested that it was already leaking while the house was put on sale. A claim which as denied, with detailed photographic proof, by our trusted property inspector. Estimated repair cost: Nearly $30,000. How we fixed it: We immediately informed the agent and raised this with our solicitor. After a series of negotiations, we concluded to holdback a sum from the settlement proceeds. Being builder trained, our buyer agent confidently understand and explained the extent of the leak and we provided an rather accurate high level estimate of the cost to repair. Without the experience of our agent, the buyer might’ve settled blindly — and paid the significant price later. 2. Final Inspection Surprise: Vendor Not Moved Out What happened: At a recent final inspection — just 3 days before settlement — we were shocked to find the vendor hadn’t fully vacated. They had started packing, but furniture, rubbish, and personal belongings were still scattered throughout the property. Understandably, this raised immediate concerns for our client who was preparing to move in. Why it’s a problem: If a vendor fails to vacate by settlement, it can delay the buyer’s move-in, rental collections, incur additional removalist and storage fees, and potentially breach contract conditions, etc. It's a situation no buyer wants to face — especially without representation. How we fixed it: We acted fast. First, we raised the issue with the selling agent and expressed our concern about the high risk of the vendor not vacating in time. We encouraged the agent to explore immediate alternative arrangements with their client. At the same time, we alerted our buyer and walked them through the options and legal contingencies. We also looped in our solicitor team in case formal action became necessary. Ultimately, the selling agent arranged alternative storage options for the vendor’s belongings — but with such a large volume of items, timing remained tight. Acting as both mediator and problem-solver, we negotiated a win-win-win outcome: The vendor was given a short, structured extension to finish moving Our buyer’s plans were not affected Settlement proceeded on time and without penalties The result? Our client took possession as scheduled — with peace of mind, no added costs, and no legal headaches. 3. Building & Pest Inspection Reveals Structural Damage What happened: During a routine pre-purchase building inspection, a serious structural issue was uncovered — the home’s flooring was tilting beyond what is acceptable under Australian Standards. This wasn’t something visible during open inspections and could have easily been missed by an untrained eye. While the defect wasn't considered immediately dangerous, it was classified as a serious structural issue, with the potential to compromise both the building’s safety and its future resale value. How we fixed it: With our background in construction and property, we recognised the warning signs instantly — and more importantly, we knew the potential cost and risk involved in rectifying the issue. We advise our client to walk away — and thanks to the building and pest clause we had included in the contract, they were able to exit the purchase and receive their full deposit back. Within just a few weeks, we helped them secure a superior property with no structural concerns — one that not only provided peace of mind, but also showed stronger long-term growth potential. The lesson? Don’t rely on appearances. Even good-looking properties can hide major flaws — and without the right guidance, buyers could end up footing a costly repair bill down the line. 4. Valuation Comes in Short What happened: A client was excited to purchase a brand new apartment in Melbourne’s CBD — a sleek development marketed heavily to investors. But here's the catch: most developer contracts don’t allow finance or building clauses, leaving buyers exposed if things go wrong. Understanding the risks, we stepped in early and negotiated key contract amendments to protect our client — including a finance clause, which is rarely accepted by developers. Our reputation in the real estate market and volume as a buyer advocate in the market helped us push for these terms successfully. As anticipated, the bank's independent valuation came back $200,000 short of the purchase price. That meant the buyer would have had to fund the entire shortfall — an enormous, unexpected financial burden. How we fixed it: Thanks to the finance clause we insisted on including, and our connections, we were able to safely exit the contract without penalty when the loan application was declined based on the lower valuation. We protected the buyer from a potentially devastating financial outcome. The takeaway? In off-the-plan or new developments, buyers often get caught without an exit strategy. But with the right representation, you can protect yourself, avoid overpaying — and walk away when things don’t stack up. 5. Vendor Refuses to Fix Promised Repairs What happened: During negotiation, the vendor agreed to fix a list of maintenance items prior to settlement. But just before final inspection the sales agent disputed the agreement and the vendor refused to fix the maintenance items. How we fixed it: We produced written evidence of the vendor’s commitment, raised it with the sales agent, and gave the vendor the option to negotiate a direct compensation to the buyer or have the issues rectified. With the written agreement, the vendor had no choice but to address the issues, or risk us walking away from the purchase, plus compensation. Conclusion: Why Experience Matters Buying property isn’t just about finding the right home — it’s about managing risk, anticipating problems, and knowing how to navigate surprises, throughout the entire process. Over 80% of purchases will be problematic. Whether it’s a misleading listing, a last-minute defect, or a dispute with the vendor — these things happen far more often than most buyers expect. That’s why we exist. Buyers Advocates Protects Property Buyer's Interests At Concierge Buyers Advocates, we don’t just help you find a property. We walk the entire journey with you — protecting your interests, avoiding costly mistakes, and giving you the confidence to move forward. If you're planning to buy — especially if you're interstate, overseas, or short on time — get in touch today. Buy smart. Buy safe. And make sure you’ve got the right advocate on your side.

Watching the sun set from an infinity pool A picture says a thousand words, they say. And this is the sunset from an infinity pool. When it comes to buying properties, we are all too familiar with viewing photographs of a property on realestate.com.au and domain.com.au advertisements. Many times, if we're overseas or interstates, we've no other options but to rely on photographs in the real estate advertisements to determine the condition of the property and make our buying decisions. How reliable are the photos in the ads? These photos are largely reliable. After all, there must be something for the photographer to shoot, in order to produce the photographs. A good photographer can make the property look fantastic with smart camera placements, camera angles, choice of lens and filters. No photoshop techniques or skills are required. All it takes is to place the camera at the right location, under the right lighting, to produce the desired effect. How do you inspect a property If you are not at the property? If you are unable to personally inspect the property, you can engage an independent expert to view it on your behalf. Or you might want to consider the on site inspection of a buyer's agent service. A truly independent buyers advocacy service inspects the property and provides you with a truly unbiased, independent inspection and review of the property. Our affordable property inspection service do not rely on the published photographs. Our principal buyer's agent and Director, Rayson, is a trained builder and experienced renovator. Within a few minutes of inspecting a property, he can confidently tell if the property is worth pursuing. We visit the property, take our own photographs, inspect the property as you would and tell you all you want to know. The good, the bad and everything in between. Short of inspecting the property yourself, our on-site property inspection is the next best thing to getting an unbiased view of the property. For an affordable fee, we save you the trouble of having to make the journey for the inspection, that's easily a few hundred dollars in fuel, time, air fare and accommodation costs saved. What About This Photo? Now, back to this photograph. What if I say there isn't any infinity pool involved in this photograph? This sunset photography was taken with the roof of a car in the foreground. No filters, no photoshop involved. Just a stock standard mobile phone camera. Surprised? Get the real view. Get the facts. Don't be surprised. Concierge Buyers Advocates. Get in touch now to find out more.

So, you’ve found the property. You like it, and you’re thinking about making an offer. Then the selling agent said "there are multiple offers" ... Your heart sank. Should you panic? Or should you trust them? Either way can be a problem. And either way can help you too. In this article, we'll show you what you can do next. What you do next, can determine if you get the property you want. “Just letting you know, we’ve got multiple offers.”... Is probably the reply buyers dread from the sales agent. Suddenly everything changes. Do you increase your offer? Put something in immediately? Assume another buyer is about to take the property from you? Or do you roll your eyes and think: “Yeah, right. Of course you do.” After more than 20 years around Melbourne properties, I can tell you that neither reaction is particularly useful. Sometimes there genuinely are multiple offers. Sometimes there is considerably less competition than the agent wants you to believe. The most important question isn't whether another buyer exists. It is not about whether there are any other offers. It is not about whether you should change your offer. It is whether another buyer should change what this property is worth to you. First: Can An Agent Invent "Another Offer"? No. An estate agent cannot simply fabricate competing buyers or offers to pressure you into paying more. Consumer Affairs Victoria states that estate agents and agents' representatives must not engage in misleading or deceptive conduct, including through verbal representations. The ACCC is even more direct: real estate agents must not mislead consumers in order to encourage higher offers. It specifically gives false representations about offers or prices as examples of conduct that can breach Australian Consumer Law. So if an agent tells you: “We have another offer.” when no such offer exists, that isn't just clever salesmanship. It is more likely true than misleading or deceptive conduct. And here is where real life becomes more complicated. What exactly does “multiple offers” mean? Agents usually say: “There are three other buyers with signed contracts offering roughly what you're about to offer.” But that may not actually be what the agent said. “Multiple offers” could potentially describe very different situations. There might be two signed offers sitting in front of the vendor. Or there could be one written offer, another buyer who has verbally indicated a number, and somebody else saying they are “very interested” in making an offer. One offer might be $1.5 million. Another might be $1.35 million. One may be unconditional. Another could be subject to finance, building inspection, and the buyer selling their existing house. They're all competing offers. They might sound similar, but they are not necessarily equal competition. Understanding this difference is critical. Consumer Affairs Victoria itself also warns buyers that where a seller receives multiple offers, the seller may accept another offer without first giving you an opportunity to increase yours. So genuine multiple-offer situations absolutely can and do happen. And it happens more often than you can imagine. Sometimes you might not even be given a chance to make an offer. The mistake is assuming that the words “multiple offers” automatically mean “you need to pay substantially more.” They don't. Your understanding of the technicalities, industry, and market should guide your next move. Do Real Estate Sales Agents use "multiple offers" Strategically? Of course they do. And it will be very wrong if you assume otherwise. Remember who the selling agent represents. The seller, not the buyer. Their job is to obtain the best possible result for their vendor, NOT you. And I won't be surprised if they consider any vague offers as an offer. Afterall, we've regularly agents told us "just so you know, I've received a few offers". Weeks later, the property is still being listed. What are the possibilities of all "fee offers" being rejected? Mathematically possible, but....... If there really are several interested buyers, telling potential buyers about the competition can be an extremely effective negotiation technique. There is nothing wrong with that. If I were to represent the seller, I would want competitive tension too. The distinction is between: creating competition from genuine buyer interest and inventing competition that does not exist. The first is negotiation. The second can cross into misleading conduct territory. Recent enforcement activities in Victoria shows that regulators are paying attention to real-estate sales practices. In July 2026, Consumer Affairs Victoria announced action concerning alleged widespread underquoting practices and communications suggesting deliberate pricing strategies. That does not mean every agent is dishonest. Far from it. I've met excellent sales agents all the time. Honest, upfront, no-BS, no underquoting, no mind-games. If there is, there is. If there isn't, they'll say so. But buyers need to understand something fundamental: The selling agent isn't the buyers' adviser. They are doing their job, selling the property FOR the vendor. You need to do your own job, as the buyer. Do your own due diligence. Or get a buyer's advocate on your side. What should you do when you hear “multiple offers”? My first response isn't: “How much do we need to offer?” It is: “Does anything I've just heard change our assessment of the property?” Usually, the answer is no. And it should n't. If our research says the property is worth somewhere between $1.45 million and $1.50 million, another buyer appearing doesn't suddenly make the property worth $1.58 million. While competition can affect the transaction price, it should NOT magically rewrite the property's underlying value. Those are two different things. Understanding the difference will save buyers a great deal of money. Ask better questions Instead of immediately increasing your offer, get information. Depending on the situation, I might ask the selling agent: Are the other offers in writing? Has the vendor received them? When will the vendors make a decision? Etc Most agent will hide behind the "Privacy" to create an unknown. There's no privacy issue if offers are anonymised. The agent knows, but still, they usually will not disclose everything. I don't expect an agent to tell me another buyer's offer simply because I ask either. But how the agent answers these questions often tells you plenty. This is where your experience or the negotiator's experience in the industry matters. Listen to what's not said. There is an enormous difference between: “We have three signed contracts and the vendor is making a decision tonight.” and: “We've got quite a bit of interest and I wouldn't want you to miss out.” While both statements may be perfectly true, they do not mean the same thing. Should you ask “What do I need to beat?" Buyers ask this constantly. It is not an automatically "Good" or "Bad" question. When it comes directly from a buyer, it puts the buyer in a terrible negotiating position. You have effectively told the agent: “I am willing to pay more. Please tell me how much.” But when it comes from a professional buyer representative, such as a Buyer's Agent, the impact is different because the sales agent understands that buyers' agents do it differently. Questions we ask may or may not mean anything. In either case, third party negotiators like us are not emotionally invested in the purchase. We'll walk if the price is not right. Experienced sales agents know this and they are usually keen to work with us to close the deal. It makes their job easier. But if you are negotiating on your own, what you should do is determine what the property is worth before the pressure starts. That means analysing things such as: genuinely sales land value building quality and condition location risks buyer demand sales data etc. This helps you establish your price range. Then you decide your pricing. Without this framework, emotions take over, and buyers usually ends up over paying. Don't bid against yourself Here's a scenario I see far too often. A buyer plans to offer $1.48 million. The agent says there are other offers and the buyer panics. “Maybe we should do $1.50 million.” Ten minutes later: “Should we make it $1.515 million just to be safe?” Nobody has asked them to increase their offer. They have just negotiated against themselves twice. That is how an extra $30,000 disappears. And the uncomfortable truth is, the competing buyer might have offered $1.44 million. Or there might genuinely be another buyer at $1.50 million. You don't know. That's exactly what the sales agent wants you to do, and why your strategy cannot depend entirely on guessing what somebody else is doing. But don't get too clever either The opposite mistake can be just as expensive. Some buyers assume every agent is bluffing. They refuse to believe there is another buyer. They offer $1.45 million on a property they would happily have paid $1.48 million for, thinking they have saved $30,000. Minutes later, someone else buys it for $1.46 million. Then the buyer spends the next six months telling everyone: “The agent should have come back to me.” Not necessarily. The sales agent need not come back to you. But in this example, he did! You just did not believe him. A vendor with multiple offers isn't always required to conduct an auction between the buyers. They can simply choose the offer they prefer, and they often do that. Consumer Affairs Victoria specifically cautions that a seller may accept another offer without giving you another opportunity to increase yours. This is why Calling the agent's bluff is often a poor strategy. The objective isn't to win the negotiation with the agent. The objective is to buy the property you want at the right price. Sometimes that means walking away. Sometimes it means putting your strongest offer forward immediately. Knowing which one is which is the difficult part. Your offer isn't just a number Price gets most of the attention, but a good negotiator will negotiate on other parameters of the offer. Imagine: Buyer A: $1,510,000, subject to finance, 60-day settlement. Buyer B: $1,500,000, finance approved, minimal conditions, settlement exactly when the vendor wants it. Depending on the seller's circumstances, Buyer B might actually have the stronger offer. Sales agents look at the Price (as that determines their commission), while smarter vendors usually consider the WHOLE offer package. Some times, improving offers need not mean improving the dollar value. You can make it attractive without simply throwing another $10,000 at the purchase price. That's negotiation. It's not always about the money. Before you make your offer, answer one question I often encourage buyers to decide this before submitting their final offer: If somebody else buys this property for $1,000 more than us tomorrow, will we regret not paying it? If the answer is: “Absolutely.” You may not yet be at your genuine walk-away price. If the answer is: “No. At that price there are better properties available.” Excellent. That is the rational limit. The important part is making the decision while you're thinking clearly, not while the sales agent is telling you another contract has just arrived. What if you suspect the competing offers aren't real? Don't make accusations unless you have evidence. Being confrontational rarely helps you buy the property. Instead, remain calm and ask yourself this question: Can you afford to lose the property? Instead of getting into this mind game, ask what the property means to you. How would you feel if the property is sold to someone else? Then make your offer based on your research. Always put important communications in writing where appropriate, and keep records. If there is genuine evidence that an agent has made false or misleading statements, buyers can raise the issue with Consumer Affairs Victoria. Misleading representations by estate agents are prohibited under Victorian and Australian consumer protection laws. But suspicion and evidence aren't the same thing. An agent saying something you don't like to hear doesn't automatically mean they are lying. Likewise, having a real estate licence doesn't make every statement infallible. Verify what you reasonably can. Then make your own decision. Tip from Buyers Agents: How Do Buyers Agents respond to "Multiple Offers" When an agent tells me there are multiple offers, I generally assume there could genuinely be competition. But I don't let the existence of another buyer determine what my client should pay. What we think a reasonable offer is does not change. And we determine that value independently, AFTER our own due diligence. Not from the sales agent, not the Statement of Information. This is the part buyers often forget: Another buyer can determine whether you get the property. They should not determine what the property is worth to you. If somebody wants to pay substantially more than our assessment of value, be happy to congratulate them. They didn't beat us. They simply paid more than what we think is top value. That is a difference. That is overpaying in our eyes. Don't panic. Don't blindly believe. Don't blindly disbelieve. “There are multiple offers” shouldn't trigger panic. Nor should it automatically trigger cynicism. Treat it as information, test it where you can. Understand the sales agent's role is NOT to help buyers. Know your numbers, then act decisively. The strongest buyer isn't necessarily the buyer prepared to throw the most money at the property. It's the buyer who knows exactly when to push, and exactly when to walk away. At Concierge Buyers Advocates, we negotiate property purchases from the buyer's side. We assess the property's value independently, work out the appropriate buying strategy, and negotiate with the selling agent without letting urgency, sales pressure, or emotion dictate the price. Because when hundreds of thousands — or millions — of dollars are involved, “the agent says there are other offers” should not drive your buying strategy. Knowing what the property is worth is. Conclusion: Navigating the Real Estate Landscape In the competitive world of real estate, understanding the nuances of offers is crucial. The phrase "multiple offers" can be a double-edged sword. It can either motivate you to act decisively or lead you to make hasty decisions. As you navigate this landscape, remember to stay informed and grounded. Your offer isn't just a number; it's a reflection of your research and understanding of the property market. By approaching the situation with a clear mind and a solid strategy, you can secure the property that truly meets your needs. After all, in the end, it’s about finding a place you can call home or a smart investment that will pay off in the long run. So, when you hear those words, take a deep breath. Assess the situation, ask the right questions, and make your next move confidently.

In an environment where interest rates and cost of living expenses are high and rising, more and more property owners are finding themselves struggling to service the mortgage repayments. While some lucky property owners have the option of tightening their belts and cutting back on expenses to keep mortgage repayments up to date, others may find themselves reacting too slowly or inadequately, leading to precarious situations. If you have a mortgage, having the bank or lender repossess your property is one such situations where no property owners want to be in. So, what happens when you are late on payments and when you receive a call or notice from your bank or lender, indicating your property will be repossessed? This blog article will help property owners understand what goes on during the repossession process, and help you explore ways to avoid being caught in one. This article is a broad representation of a typical repossession process used by the Australian banks and lenders, and it is specific to the Australian property market. And as usual, each of bank or lender will have different variations of this process. What is a Mortgagee in Possession? A Mortgagee in Possession, in Australia, refers to the situation where the lender, typically a bank, financial institution or private financier / financer, takes possession of the property and / or collateral, due to the borrower's inability to meet their mortgage repayment commitments. Essentially, it means the property will be repossessed by the lender because the borrower has defaulted on their mortgage obligations. This Mortgagee in Possession process is initiated by the lender to recover the outstanding debt owed by the borrower, after several missed repayments, and over an extended period of time. In Australia, when the lender decides to initiate repossession orders, it usually means the lender no longer believes the borrower will be able to resolve the situation. This also means the borrower might have a debt so high that the lender are unable to recover without selling the property or other collaterals. It can also mean the lender and borrower are unable to work collaboratively to avoid a repossession situation. What Happens Before a Property is Repossessed? Before a repossession is initiated, the lender will usually try to be fair and work with you to define a plan for you to catch up with the arrears. This could be restructuring the mortgage, agreeing to give you a pause in repayments (repayment holiday), etc. It is in your best interest to work with the lender to either resolve the outstanding debt or define a way forward with the lender. If this fails, or if the borrower could not agree to a way forward, the lender would be left with no choice but to initiate the repossession process. What is the Property Repossession Process in Australia? When all else fail, and the lender decides to proceed with the repossession, this is what usually happens. As usual, different lenders and different circumstances would have a slightly different process. But here's what typically happens when a property is repossessed: Notice of Default: The lender issues a Notice of Default to the borrower, informing them that they are in breach of their mortgage agreement due to missed repayments, etc. They will encourage the borrower to work with the lender to arrive at a solution agreeable to both parties. Attempted Resolution: The lender will usually attempt to work with the borrower to find a solution to the delinquency, such as renegotiating the terms of the loan or offering a repayment plan. Most lenders will usually try to work with the borrower before sending a notice of default. Legal Proceedings: If the borrower fails to rectify the default or comes to an agreeable solution, the lender may commence legal proceedings to repossess the property. This involves obtaining a court order for repossession. Repossession: Once the court grants the repossession order, the lender takes possession of the property. This may involve physically evicting the occupants, if necessary. And you may come home one day with the locked changed or the doors sealed. If it is a rental property, the renters would usually be allowed to complete the lease term, within a reasonable time frame, or they may also be evicted after serving a notice of eviction. Sale of the Property: After repossessing the property, the lender typically seeks to sell the property, in order to recover the outstanding debt owed by the borrower. Depending on the lender, situation and the property, the property may be sold through auction, private sale, or other means. Auction is usually the preferred method, as it is usually seen by the legal team as the most transparent and least biased. Debt Settlement: Proceeds from the sale is then used to settle the debt. If the proceeds from the sale of the property do not cover the full amount owed by the borrower (including the outstanding mortgage balance, interests, late fees, penalties and any debt recovery, management, legal and associated costs, etc), the borrower is usually still liable for the remaining debt. In most cases, the lender may pursue further legal action to recover this debt, including seizing any other securities, properties, etc. Lenders Mortgage Insurance (LMI): If the borrowers have lenders mortgage insurance, the lenders will recover the shortfall from the insurer. But that does not mean the borrower get off scot free. The LMI insurer can and do, in turn recover this shortfall from the borrower. The LMI is not the get out of jail free card. It is buying time to repay the mortgage. Surplus Funds: If the sale of the property generates more proceeds than the total debt by the borrower, the excess funds (surplus) may be returned to the borrower, depending on the specific circumstances and applicable laws. Bankruptcy: If the sales did not cover the mortgage and cost of repossession, and you are unable to find funds to cover the outstanding debts or reach an agreement to repay the debts, the creditors may be forced to apply to make you bankrupt. How long does the Repossession Process take? In Australia, the repossession process usually takes between 2 to 3 years. IE, most mortgagee in possession properties will hit the buyers market after a lengthy 2-year process. It's important to note that the process and duration of repossession and sale of a property can vary significantly depending on factors such as the terms of the lenders' internal processes, lenders' mortgage agreement, state laws, negotiations between lender and borrower, lender's and the borrower's circumstances, etc Does Bankruptcy End Your Debt? Contrary to popular belief, being bankrupt DOES NOT wipe your debt. You are still liable to repay your debts. Your income, salary, other properties and possessions of value may also be garnished, force sold and the returns distributed to your debtors. Your name will also be recorded permanently in the National Personal Insolvency Index (NPII), and you will also face travel restrictions, inability to run a business, difficulty obtaining future credit, insurance, etc. You may also be excluded from certain employment. Your debt is only wiped after the bankruptcy ends, which can vary from 3 years + 1 day up to 8 years. The credit scar, however, can stay with you forever. The NPII record is searchable by anyone. How Can You Avoid a Mortgagee in Possession (Repossession) Situation? To avoid ending up in a mortgagee in possession situation, you need to go back to investment and money making basics. By being prudent with your spending and borrowing, you can usually avoid ending up in such a difficult situation. Mortgagee in Possession situations almost never happen overnight. The repossession process is lengthy and expensive. It can cost the lender tens of thousands to hundreds of thousands of dollars. This cost is usually recovered by adding to your total debt balance. Repossessing the property is usually the last stage of managing a debt in default, and it is a stage where no mortgagee wants to get to. The lender is only keen to recover the debt, and they will work with you to recover the debt. As a borrower, here are a few very simple and basic concepts to prevent yourself from getting into the repossession situation: 1. Avoid Overextending yourself Never stretch yourself beyond your means. Assess your financial capacity meticulously. While a mortgage broker may suggest you can borrow a certain amount based on your income and expenses, you still have to responsibility to borrow prudently. Before committing to any further debts, ask yourself essential questions: Do you need to buy a property worth that amount? Can you comfortably manage the monthly mortgage payments? Is investing that amount in property the best choice for your financial situation? What if you lost part or all of your income? Can you still comfortably afford the mortgage? As much as mortgage brokers tries to help you find the best mortgage, no mortgage brokers or financial experts know you better than you do. Always remember, mortgage brokers earn commissions based on the amount you borrow, so some unscrupulous mortgage brokers will push you to borrow more. Be cautious and prioritize your own financial stability. 2. Be wary of Free Property Investment Seminars by Spruikers We get it. Free property investment advice sounds like a steal. But let’s be honest: we know there is no such thing as a free lunch. We’ve sat in rooms where smiling “property gurus” hand out coffee, snack and promises, only to push you towards developer-funded property "deals" that line their pockets, not yours. They’re banking on your naiveness, excitement (and your budget) to drive their commissions. Often, it’s the very property investors and buyers who cannot afford a loss who get caught in these traps. And this brings us to the next point. 3. Avoid Negatively Geared Properties Negatively geared properties involve incurring losses with the hope of future profits. It effectively means you're losing money, hoping to make money in future. This strategy is usually suitable for wealthy investors who can absorb losses without significant impact to their lifestyle. Unfortunately, spruikers and fake property investment "strategists" and real estate project marketers often use such free property investment seminars to target individuals, selling massively negatively geared properties, promising "potential future growth". While negative gearing may sound good, it should be used with caution. Negative gearing can bite you very hard during a property or economic downturn and when interest rates are rising. Before diving into negatively geared investments, consider whether you can afford the risk: Can you afford to potentially lose the property? Assess the implications of high-interest rates on such investments. It's concerning that some individuals explore negative gearing when interest rates are high, without fully understanding the implications. Negative gearing is effectively losing more money to save on taxes. It's akin to losing a dollar to save 30 cents – a scenario nobody should desire. In the Australian investment environment, if you like losing $1, to save 30 cents, let us know. I'll send you our bank details. For every dollar you deposit, I'll return 30 cents to you. Okay... Let's make it 35 cents, for every dollar you send us. 4. Chase Quality not Quantity Choose your investment properly. Go for quality, not quantity. There is no need to chase X number of investment properties. The idea of more investment properties equates to greater wealth is used by property spruikers for marketing purposes. The reason? They earn commission for every property you buy. Do they really own those property? No. As long as they have a mortgage on them, the bank has control of it. 5. You Only Need 3 Properties to Retire Planning for retirement? Don't be suckled in by advisors telling you need 100 properties to retire. You do not need hundreds of houses to retire. You only need 3 good, strategically selected ones to retire. This article explains and shows what it takes for you to retire. By being careful with the properties you select, you can be a step ahead of everyone else, without overextending yourself, and stay out of debt. Bottom line: Stay within your means, dodge the hype, and buy smart. By adhering to these principles and making informed decisions, you can safeguard yourself from the risks associated with Mortgagee in Possession situations and ensure a more secure financial future. What Should You Do, if You Think Your Property May Be Repossessed? If you're concerned that your property may be repossessed due to financial strain, it's essential to take proactive steps to mitigate the situation:: Review your expenses: Conduct a thorough review of your expenses to identify areas where you can cut back. Look for non-essential expenses that can be eliminated or reduced to free up more funds for mortgage repayments.. Increase your income: Consider ways to boost your income, such as taking on a second job or pursuing opportunities for higher-paying employment. Generating additional income can help alleviate financial pressure and improve your ability to meet mortgage obligations Assess Troublesome Properties: Evaluate which properties in your portfolio are causing the most financial strain. Identifying these properties allows you to prioritise them for action, whether through restructuring loans, refinancing, or selling the property. Explore Refinancing: It might be too late, as the banks would have tightened their lending, so, you might not be able to refinance. But it is worth a try. If you're using a mortgage broker though, be wary of the information you share with them. Shady as they may be, most mortgage brokers have connections looking for cheap properties. They will be low balling your properties. Use someone you trust. We have a few honest brokers with integrity. Let us know if you need one. Talk to the Bank or Lender: This might be counter-intuitive, but remember, the banks are not in the real estate business. They want their money back and they will be keen to work with you to try to recover what you owe them. Explain your situation to them, and if you are sincere and cooperative, they might be able to work out a payment option with you. They may allow you to delay your payments, or restructure your mortgage to lower your monthly payments, or allow you to try to sell the property before they do. Explore Selling Your Property: If you're struggling to maintain multiple properties, consider selling the properties that are causing the most financial stress. OR selling the properties with the most equity in them. Liquidating assets can help alleviate financial burdens and prevent / slow further escalation of debt. There is no single best solution, but if you would like to have a chat with us, we can help you assess your best option. Seek Professional Assistance: Reach out to professionals such as buyers advocates and property investment advisors like us, or financial advisors who can provide guidance and support during this challenging time. Consult with financial advisors or property experts to explore viable solutions and navigate the repossession process effectively. Be Proactive: This may be a stressful moment for you, but it is not the time to be emotional. Do not delay seeking assistance if you anticipate repossession. Acting promptly allows you to explore options and take necessary steps to protect your financial interests before the situation escalates further. You need to avoid getting yourself into a repossession situation. Be Proactive. Act before the bank does. What Should You do to Avoid the Mortgagee in Possession Situation? Borrowers facing financial difficulties should seek advice from a financial counselor or legal professional to understand their rights and options. Consider selling some or all properties, before the bank does. If you are selling, selling through a real estate sales agent is NOT the only way to sell your property. Consider using effective, low-cost options, such as selling it yourself, to your friends and relatives. Also explore our vendor advocacy options, where we can either match a buyer for your property, at no cost to you. We help to find the best agent to sell your property, plus keeping them honest, saving you from paying excessive sales commissions, or help you find the best sales agent and keep them honest. Can You Negotiate with the Mortgagee to Avoid Repossession? Yes and no. It depends on how far you are behind in repayments, how cooperative you had been with your Mortgagee, your relationship with the Mortgagee and your personal circumstances. If you have been proactive, chances are, you can avoid getting yourself in this sticky situation. And if you do find yourself in a potential repossession situation, your mortgagee is more likely to work with you for a mutually beneficial situation. But if you (or your mortgage broker) had been dodgy and lying to the mortgagee, you can be sure they will be the least cooperative when you needed them. Always be proactive, upfront and honest with your mortgagee. How can You Negotiate with Your Mortgagee? If you are early in the process and your mortgagee allows it, here are some tips to negotiate with your lender. Things You Should Remember When You Negotiate With the Mortgagee There is one fundamental thing you need to remember when you negotiate with the lender. The business model of the major banks and lenders is not about owning properties or selling properties. They lend you the money for your properties on the premise that you can repay the principal plus the agreed interests. Thus, within reasons, banks will try their best to negotiate, and accommodate your needs, so they can avoid having to force sell your properties. If all things failed, and they have to force sell your properties, it means they believe it is too late, and they do not see you recovering from your debts. This also means they will not be the happiest person. It is a business transaction to them, with no emotions attached. If they have to take possession or your property, you can be sure they will send their best team to do it, in the shortest time possible and with the highest possible fees, interest rates and charges. Always remember, interests on your debt do not stop accruing until you pay it off or until they make you bankrupt. What Happens After Your Property is Repossessed and Sold? After your property is repossessed and sold, the best you can hope is for the sale to clear all of your debt. This gives you the opportunity to start afresh, sooner. If you are in a negative equity situation, you're in big trouble. Your property will be force sold and you'll be left with the balance of the debt. Thus, low deposit schemes, and high yield properties (which usually means very low or negative growth), should be avoided where possible. After Selling, Can You Ask for Early Release of Deposit to Pay Off Your Other Debts? In some states, such as Victoria, you, as the seller might be able to ask for an early release of the deposit after selling your property. In Victoria, the Section 27 for allows the sellers to make this request. However, as a person with debts in default, trying to ask for an early release of deposit is a tricky question. The answer is yes and no. There is no straight forward answers. It depends on how cooperative you had been, how honest and upfront you had been, and the reason / purpose for asking an early release of your deposit. This request needs inputs from the mortgagee and the buyer's conveyancer / solicitor. The mortgagee/s will include information such as: Amount you owe, and at what interest rates Are you in default (ie, have you missed payments) Mortgagee's inputs (advice) to the buyer's decision process. When the buyer's conveyancer or solicitor realise the debt is in default, chances are, they will reject the early release of money. As the buyer will be assuming the responsibility of losing the deposit, if the settlement does not proceed. That said, money from the sale of your property has to go towards paying off your mortgage and debt. So, the money technically, does not belong to you. It belongs to the mortgagee. Any money that is released early has to go off paying the secured debt as a priority. So, while you might hope you can use the deposit to relieve your debt situation, you might realise you might not see a cent of it. However, if you had been upfront and honest dealing with your mortgagee, you would have built up enough trust with the mortgagee, the mortgagee might let you access some of the funds to pay off your other debts, if they are confident there would have sufficient funds remaining in the proceeds of the sale to cover your debts. This is why, if you find yourself struggling to service your debt, it is in your best interest to to be honest with your mortgagee. Mortgagees will usually dislike borrowers who are not honest with them. How Long Does It Take to Repossess Your Property? The repossession process may take up to 2-3 years of more, and your debt does not stop accruing interests, even when you no longer have access to your property. You are usually liable for any interest accrued until your debt is completely paid off. If your debt still remains after the property is sold, the court may grant the mortgagee the right to garnish any other assets, monies from your savings, and / or income or salary. Mortgagee will usually not stop, until they recover every cent you owe or until they make you bankrupt. Is a Mortgagee-in-Possession Sale Property a Good Deal? Contrary to popular views, mortgagee in possession properties are not automatically good deals. Yes, the mortgagees are keen to sell, but, unlike many other countries, in Australia, mortgagees are also required to ensure they get fair value for the properties. Under section 77(1) of the Transfer of Land Act 1958 (Vic), the mortgagee must exercise its power of sale in good faith, having regard to the interests of the mortgagor and other interested parties. The Victorian Court of Appeal clarified this in MBF Investments Pty Ltd v Nolan [2011] VSCA 114. The mortgagee must take reasonable steps to obtain the best price reasonably available, consistent with its right to enforce its security. This example of a half priced 3 bedroom apartment on Toorak shows when a mortgagee in possession properties are well-priced, there are other hidden reasons. And the "Mortgagee Sale" label is often not the reason. So, do not expect you can always buy a mortgagee sale for a good price. How Can Buyers Advocates Help You Avoid Repossession? Buyers Advocates can play a crucial role in helping you avoid repossession by providing timely assistance and access to potential buyers for your property: Access to a Pool of Ready Buyers: Buyers Advocates have established networks and connections with qualified buyers, ready to buy properties. By reaching out to them, you gain access to a pool of interested buyers who are ready to purchase your property. Swift Action and Response: If you suspect that your property may be at risk of repossession, it is essential to act swiftly. Buyers Advocates can provide immediate assistance and support, offering guidance on the best course of action to protect your property interests. Opportunity to Sell Before Repossession: By engaging with Buyers Advocates early in the process, you have the opportunity to explore selling your property before repossession proceedings begin. This proactive approach can help you avoid the negative consequences associated with repossession. Potential Cost Savings: Selling your property through Buyers Advocates may result in significant cost savings compared to traditional real estate transactions. Because these buyers have already paid the buyers advocates a service fee, they will not charge you any sales commissions. With no commissions involved and access to qualified buyers, you can usually sell your property fast and saving tens of thousands of dollars in commissions, fees and expenses. Expert Guidance and Support: Genuine Independent Buyers Advocates offer expert guidance and support throughout the selling process, helping you navigate complexities and make informed decisions. Their industry knowledge and experience can be invaluable in securing a favorable outcome. SPEED Prevents Further Financial Strain: Debt interests do not stop accruing until the debt is paid off. By selling your property fast before repossession occurs, you can prevent further financial strain and minimize the impact on your credit rating and financial stability. Buyers Advocates can help expedite the sale process, ensuring a smooth transition and resolution. Timely Intervention: Seeking assistance from Buyers Advocates at the earliest indication of financial difficulty allows for timely intervention and mitigation of potential risks. Their proactive approach can help you address challenges effectively and protect your long-term financial interests. If you are in a no-return situation, the earlier you sell, the less interest and debt recovery costs you will owe your bank/lenders/creditors. Talk to us Before the Bank Repossess Your Property We hope our readers do not find themselves in such a situation. But if you do, talk to us. Our Buyers Advocates will discuss how we can offer proactive and effective solutions for avoiding repossession by facilitating the sale of your property to qualified and ready buyers. Our expertise, network, and timely intervention can make a significant difference in preserving your financial well-being and securing a positive outcome for you. We have a constant pool of buyers who are ready to buy your properties. If your property meets the criteria our buyers are looking for and they buy it, you can save yourself over $30k-$100k or more in sales commissions and other expenses. This is quite a substantial savings, but you will need to come to us before the bank initiates their debt management and repossession process. Disclaimer: Information provided here and anywhere in our website is general information only, and should not be taken as financial or legal advice. It does not take your personal circumstances, needs and requirements, etc, into consideration. You should always seek formal legal and financial advice for solutions to suit your individual circumstances. Updated October 2027.

Is Mortgagee Sales Automatically a Good Deal? In Australia, a mortgagee exercising its power of sale has obligations concerning how the property is sold. For a Victorian mortgagee sale, the applicable duties depend on the circumstances, including whether the sale involves corporate property. For example, section 420A of the Corporations Act 2001 can require a controller selling company property to take all reasonable care to sell it for market value or, where there is no market value, the best price reasonably obtainable. Other mortgagee duties arise under property law and equitable principles. The important distinction is that the mortgagee is generally required to take reasonable care in the sale process. It is not guaranteeing a particular sale price, and a sale below a previous valuation does not automatically establish a breach. What this means for buyers of Mortgagee Sale Properties Imagine a property worth $1 million, and the borrower owes the bank only $600,000. Some buyers believe the bank might happily accept $650,000 because that would recover its loan. That might be how it is done in some countries, but that's generally not how a properly conducted mortgagee sale works in Australia. In Australia, the mortgagee cannot simply disregard its obligations to the borrower and other interested parties because its own debt would be repaid. It must take appropriate steps to achieve a proper sale outcome. Those steps might include obtaining valuations, engaging an agent, conducting a marketing campaign and considering available offers. Consequently, the amount owed to the bank is not necessarily a useful guide to the property's selling price. But mortgagee properties can still sell cheaply But they are more often than not, cheap for other reasons, not simply because it is a mortgagee property. These are some circumstances where mortgagee sales achieve prices below those of apparently comparable properties. For example: The property has serious structural defects or requires extensive repairs. There are title, planning, access or occupancy complications. The property is poorly presented or has restricted inspection access. The mortgagee needs to complete the sale within a reasonable timeframe. Buyers require compensation for unusual contractual risks. But here's the crucial distinction: A property selling below the price of a comparable property is not necessarily selling below its own market value. Even without the "mortgagee in possession" label, any properties with any/multiple of the above problems would usually be sold at a discount too. And these problems could be the reasons why the mortgagee on the properties are neglected and left to be repossessed. A $700,000 apartment with substantial building liabilities may be worth $700,000—or less—even when a seemingly similar apartment without those liabilities is worth $1 million. Sometimes, the details are buried somewhere obvious, but not so obvious. A low price is just the market pricing in risk. And that's precisely what happened in our $700k 3 bedroom Hawthorn East apartment investigation: the low asking price prompted interest, but the documentation revealed reasons for caution. It does not, by itself, prove why the vendor set that price. We investigated this Melbourne 3 bedroom mortgagee sale apartment with 107 historical building defects. Read why we decided not to buy it. Conclusion Mortgagee sales are not inherently bad purchases. But they're not inherently bargains either. A mortgagee generally has obligations concerning the sale price and process. The fact that a lender wants to recover its debt doesn't mean it can simply dispose of the property at any price. When a mortgagee sale appears unusually cheap, buyers should ask why. Is it genuinely undervalued? Or are there problems that other buyers have already identified and priced into their offers? At Concierge Buyers Advocates, we approach mortgagee sales the same way we approach every other purchase: independent valuation, comprehensive due diligence and a clear understanding of risk. The opportunity isn't buying below the previous owner's mortgage. It's buying below the property's true risk-adjusted market value.

Updated 6 Oct 2026 You've found a great house. The location works. The floorplan works. The price looks VERY attractive. Then you notice something. High-voltage transmission lines nearby. For many buyers, the immediate question is: “Is it safe to live near power lines?” That's understandable. But from a property-buying perspective, I would ask another question: “When I eventually sell this property, how many future buyers will reject it?” Because when assessing properties near high-voltage power lines, there are really four separate issues: health concerns visual amenity easements and restrictions property value and future resale demand. And in my experience as a buyer's advocate, the fourth issue is often the one buyers underestimate most. Short answer: Buying near high-voltage power lines is not automatically a bad idea. Current Australian guidance does not establish that living near power lines causes adverse health effects. From a property perspective, the bigger risks are reduced buyer demand, visual impact and resale value. The key answer is to establish whether the purchase price adequately compensates you for those disadvantages. Not All Power Lines Are the Same The first mistake is treating every powerline equally. They are not. The ordinary poles and wires running along suburban Melbourne streets are very different from the large steel transmission towers that tend to worry property buyers. Broadly, Australia's electricity infrastructure includes: Distribution lines These are the poles and wires commonly found throughout established suburbs. For most buyers, they are simply part of the streetscape. Service lines These connect individual properties to the local distribution network. Again, these usually have little effect on property demand. High-voltage transmission lines These are the large steel towers and major overhead lines carrying electricity across long distances. In Victoria, major transmission lines can operate at voltages such as 220kV and 500kV. These are the lines most likely to affect buyer perception and therefore property value. So when somebody asks: “Would you buy near power lines?” Your first response should be: What kind of power lines, how close are they? Are High-Voltage Power Lines Dangerous to Your Health? This is probably the most emotional part of the discussion when looking at house near power lines. Power lines can produce extremely low-frequency electric and magnetic fields, usually referred to as EMFs. According to the Australian Radiation Protection and Nuclear Safety Agency (ARPANSA), there is currently no established scientific evidence that exposure to electric and magnetic fields around homes or near power lines causes adverse health effects. However, the scientific proof of health concerns deserves some mention. Some studies have observed a small statistical association between prolonged exposure to higher-than-normal magnetic fields and childhood leukaemia. That does not establish that power lines cause childhood leukaemia. ARPANSA notes that the evidence is not strong, and other research has not established a causal mechanism. ARPANSA also advises that homes more than approximately 50 metres from high-voltage transmission lines generally are not expected to experience magnetic-field levels above those normally found in homes. So there isn't sufficient evidence to support the believe that power lines are dangerous. But we should also not dismiss that buyers still do remain uncomfortable about them. Because their concern matters for another reason. Future buyers may feel exactly the same way. The Bigger Property Risk Is Buyer Perception Property markets and property prices don't operate purely on science. Property markets operate on human behaviour, and human perception. Let's imagine two otherwise similar houses: House A Beautiful outlook, normal residential streetscape. House B A large transmission tower is clearly visible behind the backyard. Even if scientific evidence doesn't establish a health risk, some buyers will immediately reject House B. Others will inspect it but expect a discount, and there will be others will buy it without concern. The important concern here is: the potential buyer pool has become smaller. And fewer potential buyers can mean weaker competition. That's how power lines can affect property value. Do Power Lines Reduce Property Values? Yes and no. There's no simple answer. It depends on the market and demand. But generally, properties near power lines do tend to sell at a lower price. Simply because it reduced the buyer pool, and a smaller pool of buyers usually leads to lower competition and hence lower value. However, there is no universal percentage reduction. There are also many instances where properties are selling at near or above market values, as recent sales in Rowville, Wheelers Hill and Mulgrave shows. These prime locations are in established suburbs with good amenities and within 5 minutes from the highway. Location still matters. Claims that being a certain distance from transmission lines automatically reduces a property's value by 5%, 10% or 20% should be treated cautiously. Property markets don't work mathematically. And this is the same reason why computerised valuations are almost always pointless. The impact of power lines on property values depends on factors including: how close the power lines are whether the power lines cross the property whether there is a tower immediately nearby whether the power lines are clearly visible from living areas the size and orientation of the land how desirable the suburb is what alternatives buyers have the overall price point market conditions at the time. A transmission corridor 300 metres away and largely hidden by vegetation is very different from a tower sitting immediately behind the backyard fence. While some Feng Shui principles suggests power lines should be at least 100 to 200 metres away from the properties. Visibility Can Affect Property Values More Than Distance This is something buyers often overlook. A property may technically be reasonably far from transmission infrastructure but have a direct, uninterrupted view of the towers. And another property may be closer but have buildings, vegetation or topography screening most of them. Which property will buyers perceive more negatively? Often the first one. That's why I don't like arbitrary rules such as “Never buy within 500 metres of power lines.” Property isn't that simple. You need to physically inspect the property on-site. Stand in the backyard. Look out of the bedroom windows. Sit in the living room. Walk down the street. Then ask: How prominent are the power lines in everyday life? And, can you accept this? What If the Power Line Easement Is Actually on the Property? Now this is a totally different issue. A transmission easement is a legal right allowing the electricity network operator to access land and operate and maintain its infrastructure. So, while the land may still belong to you, it doesn't mean you can use the land however you want. You might not even be able to fence it up. Restrictions can affect activities such as: building structures excavation landscaping planting certain vegetation changing ground levels storing materials installing services. Depending on the network and infrastructure, transmission easements can be substantial. Buyers should NOT simply reply on the title and Section 32. Sometimes, these information may not be recorded on the title and provided in the sales contract. An Easement Can Affect How You Use Your Property This becomes particularly important when people buy property based on future possibilities. For example, you may see a large 900-square-metre block and think: “I'll subdivide this one day.” But if a significant portion of the land is affected by an easement (such as a transmission tower easement), your usable land area may be considerably smaller than it first appears. Likewise, somebody buying a family home may assume there is space for a future: swimming pool extension granny flat large shed landscaped garden. Those assumptions need to be checked. This is why due diligence is important. Does Being Near Power Lines Affect Bank Mortgage? The question isn't: “Will the bank lend on property near power lines?” The real question is: “How much will the bank lend for a house near power lines?” This depends on two things. Banks policy and Risk assessment. Some banks do not want to be left managing a property they cannot sell, if they have to repossess the property. The valuer's valuation. Banks usually rely on professional valuations when determining the security value of a property. A valuer may consider anything that materially affects marketability. If nearby transmission infrastructure reduces buyer demand, comparable sales may show that buyers have historically paid less for affected properties. That difference may therefore appear in the valuation. Also don't assume: “The bank approved it, therefore I didn't overpay.” Bank approval and buying a good buy are two different things. Could Buying Near Power Lines Actually Be a Good Opportunity? Absolutely. Sometimes a property's list price looks attractive. And power lines could be one reasons why the vendors' expectation can be lower. But, sometimes it doesn't, especially if the vendor or sales agents believe the property deserves a higher price. A property near power lines is not automatically a reason not to buy. Sometimes it is simply a reason not to overpay. Suppose an otherwise comparable home is worth $1.50 million. A similar property affected by visible transmission lines is available for $1.30 million. Would I reject it automatically? No. The important question is: Is the $200,000 discount enough to compensate for the disadvantage? Remember, if you buy at an appropriate discount, the same stigma that works against the seller today can work in your favour as the buyer. And if it works in your favour as the buyer today, it will usually work in your buyer's favour when you sell. This is, of course, assuming the power transmission tower is still there when you sell. The Mistake Can Be Paying the Same Price as a Property Unaffected by Power Lines This is where buyers should become much more cautious. Now, imagine a property unaffected by power lines is listed for $1,500,000. While a property beside transmission corridor lists for $1,480,000. I'll be asking why should I be accepting a significant property disadvantage for only a $20,000 saving. When you eventually sell, you will face the same power line objection. You therefore want to be compensated when you buy, not discover the problem when you sell. Investment Property Versus Home: Different Assessment For a home buyer, lifestyle matters. If you're uncomfortable looking at transmission towers every morning, it doesn't matter whether somebody tells you they're harmless. You have to live there, they don't. Can you realistically accept looking at the lines everyday? For an investor, the analysis is slightly different. I'd focus heavily on: purchase discount rental demand vacancy risk resale liquidity redevelopment restrictions scarcity of the underlying land alternative properties available at the same price. A sufficiently discounted property can still be an excellent investment. But mediocre property bought cheaply isn't always good value. What About Properties That Back Onto Transmission Reserves? Sometimes there can even be lifestyle advantages. A transmission reserve may create: additional separation from rear neighbours open space walking trails greenery larger visual setbacks less immediate development behind the property. Some buyers actually prefer that. Again, property isn't binary. A transmission corridor isn't automatically a bad property. Does the Selling Agent Have to Tell You The Property is Near Power Lines? Don't rely purely on what the selling agent volunteers. Victorian sellers and agents have obligations regarding material facts, and a Section 32 Vendor Statement contains important information about matters affecting the land, including registered easements. But a nearby transmission line may not necessarily be an easement affecting the property you're buying. Sales agents usually do not have eyes to notice it is near transmission lines, thus they might not be aware enough to volunteer that information to you, if you had not asked precisely the right question. But eyes, you have. If there's a gigantic steel transmission tower 100 metres away, you can see it when you inspect the property. Due diligence shouldn't depend on whether somebody ought to mention it. Check: the property title the Section 32 easements planning maps satellite photos surrounding land proposed infrastructure the property in person. Note though, a power transmission towers that are not on the property are usually not recorded on the property title, contract of sales, easements, etc. And even if they are, they might not always be recorded too. We've seen some cases where absolutely nothing is recorded even when the tower is in the backyards. So, never buy purely from listing photographs. Never buy sight unseen. Nothing beats a physical on-site inspection. Why Online Property Photos Aren't Enough Real estate photography is designed to present a property attractively. That's perfectly normal. And camera angles can also make undesirable neighbouring features surprisingly easy to miss. You can photograph a backyard without showing the power transmission tower behind it. You can also crop power lines out. Digital erasing is illegal, but cropping out can be in the grey area and is usually OK. You can photograph the house from an angle where surrounding transmission infrastructure isn't obvious. Such techniques had been used by photographers before, and they will continue to be used. It is absolutely legal. Google Maps and satellite imagery may help. Power transmission lines are usually too fine to show up on grainy Google satellite images, unless you are specifically looking for that in the right places. Nothing replaces physically standing at the property. We had seen instances where photographs do not reflect what the property actually is. This is particularly important for interstate and overseas buyers. What Should You Check When Assessing Properties Near Power Lines? I don't automatically reject them. Instead, I ask five questions. 1. Are the power lines actually affecting the property? Distance alone doesn't answer this. Consider visibility, noise, location and the surrounding streetscape. 2. Is there a power line easement on the property? If yes, understand precisely what part of the land is affected and what you can do with it. 3. How many future buyers will reject the property because of power lines? Think about resale before you buy. This is what determines the price you'll get from future sale. 4. What are unaffected properties selling for? You cannot calculate a discount without knowing the alternative. 5. Am I being compensated sufficiently? This is ultimately the important one. If the property has a permanent disadvantage, I want a meaningful price advantage. How "Near" is Considered Near to Power Lines? The perception of proximity to power lines varies based on personal preference. From feedback received from our home and investment property buying clients, the general consensus suggests, if a property is directly under or adjacent to transmission towers, most buyers will be concerned. About 50+% would also be concerned if power lines are within two streets of the property, while some would be uneasy just by the sight of the tower, even if the tower is 500 meters away. Should You Buy a House Near High-Voltage Power Lines? Yes, under the right circumstances. But I would never buy one simply because it looks cheap. I would want to understand why it is cheap. Check the property plus the powerline impact plus the easement (if any) plus future buyer resistance. Then determine an appropriate price. In some cases, I would buy it. In others, I would walk away. Do Doctors Have Concerns Living Near Power Lines? Some doctors DO NOT mind living near power lines. We have doctor buyer clients who are not a tiny bit concerned with power lines. However, we do not have doubts if there could be some doctors who might have such concerns. The Real Risk Isn't Necessarily EMF For most property buyers, this is probably the most important takeaway. Current scientific evidence does not establish that living near high-voltage powerlines causes adverse health effects. But that doesn't mean power lines have no effect on property. Buyer perception itself affects markets. If 20% or 30% of your potential future buyers won't consider the property, regardless of whether their concerns are scientifically justified, that concern is what matters when you're selling. FAQs - Power Lines Is it safe to live near high-voltage power lines? Australian radiation authority ARPANSA says there is no established scientific evidence that exposure to electric and magnetic fields around homes or near power lines causes adverse health effects. Some epidemiological research has reported an association between prolonged higher magnetic-field exposure and childhood leukaemia, but causation has not been established. How far should a house be from high-voltage power lines? There is no universally prescribed residential distance that makes a property automatically safe or unsafe. ARPANSA says homes more than approximately 50 metres from high-voltage lines generally aren't expected to experience magnetic fields above typical residential levels. From a property perspective, however, visual impact and buyer perception can continue much further than 50 metres. Do power lines lower property values? They can. The aboslute effect on property values depends heavily on proximity, visibility, easements, property type, local buyer sentiment and market conditions. There is no reliable universal percentage discount. Good locations can also be expected to sell for almost $0 discount. Should I avoid buying a property near power lines? Not automatically. A discounted property may represent good value if the discount properly compensates you for its disadvantages. The key is comparing it against similar unaffected properties. Can I build underneath transmission lines? There can be significant restrictions on building and other activities within electricity transmission easements. Buyers should check the title, Section 32 and relevant network operator requirements before assuming an affected area can be developed. Are transmission-line easements shown on the Section 32? Registered easements affecting Victorian properties are generally shown on the title documentation provided with the Section 32 Vendor Statement. However there are instances where they are not. Eg, If the power transmission is not on your property lot, they are not shown, even if they are right next to your lot. Also consider getting an independent inspection done before you make your offer. Final Thoughts High-voltage power lines are a good example of why buying property isn't simply about finding a house you like. You need to consider the next buyer as well. While there may not be scientific studies establishing a health risk. Buyer perception, visual impact, easement restrictions and reduced resale demand are genuine property considerations. So, I wouldn't automatically reject a property near transmission lines. But I wouldn't pay the same price for it as an equivalent unaffected property if I don't have to. Always Independently Inspect the Property An on-site inspection is absolutely invaluable for assessing a property firsthand. Our cost-effective home inspection service, conducted by independent buyers advocates, is particularly popular with buyers who are unable to personally attend the inspections themselves. Our advocates provide a thorough, unbiased inspection of the property, ensuring every detail is covered within the timeframe allowed. We also include an independent appraisal, so you fully understand the true value of the property and avoid the risk of overpaying. Let us help you make informed decisions, no matter where you are. For more personalized advice or to arrange an inspection, please contact us. Your peace of mind is our priority.

Updated 6 Oct 2026 For decades, Melbourne property buyers have been turning up to auctions without knowing one rather important number: What is the Reserve Price? What is the price the seller is actually prepared to sell for. A property might be advertised at $1.2 million to $1.3 million, attract several interested buyers, undergo weeks of inspections and building reports — only for buyers to discover on auction day that the seller's reserve was substantially higher. Understandably, buyers have often asked: Why don't they just disclose the reserve price? Victoria has now changed the rules. Under the new property price transparency laws introduced from 1 October 2026, estate agents selling properties by auction or fixed-date sale must publish the seller's reserve price at least seven days before the sale. The reserve disclosure requirement applies to auctions and fixed-date sales held from 16 October 2026 onwards. That is a significant change to the way Victorian property has traditionally been sold. But there is a more important question: Will disclosing the reserve price actually stop underquoting? My view? It should improve transparency considerably. But no, it will not eliminate underquoting or stop agents from managing buyer expectations strategically. The game has changed. But the need to do your due diligence hasn't disappeared. What Is an Auction Reserve Price? The auction reserve price is the minimum price at which the seller is willing to accept at the auction. If bidding reaches or exceeds the reserve price, the property is usually “on the market” and will usually be sold to the highest bidder. If bidding doesn’t reach the reserve, the property is typically “passed in” and negotiations happen afterwards with the highest bidder and other interested parties. Sometimes, the next higher bidder might also be asked to prepare for negotiations, in case the higher bidder could not reach an agreeable price. Traditionally, Victorian buyers usually didn't know the Auction Reserve Price. It is also important to note that the reserve price used to be adjustable right up to the final minutes before the auction hammer falls. You would see an advertised range such as: $1,300,000–$1,400,000 But that did not necessarily mean the vendor would sell for $1.4 million. The previous "Statement of Information" was supposed to provide a price guide to what the vendor wants. But, as with any sales and marketing people would, they have been creatively adopted to attract buyers. So, at auctions, the bidding might reach $1.45 million, way passed the top of the price guide and the auctioneer could still announce: “We're not quite there yet.” Only when the property was declared “on the market” would buyers know that the bidding had reached or exceeded the reserve. That uncertainty was a very useful selling tool. What Are the New 2026 Changes in Property Auctions in Victoria? Under Victoria's new property price transparency rules, an estate agent conducting an auction or fixed-date sale must obtain and publish the seller's reserve price at least seven days before the sale. The reserve must be disclosed as a single dollar amount. Not: “From $1.4 million” “$1.4 million+” “Offers over $1.4 million” “Starting from $1.4 million” But something much clearer: Reserve: $1,400,000 The reserve must also appear in the property's advertising and Property Price Statement. And the penalties for doing it differently have also been enhanced. If the reserve has not been publicly disclosed for the required seven-day period, the auction or fixed-date sale cannot proceed. That is a significant change. Why Were Auction Reserve Prices Traditionally Kept Secret? To understand what may happen next, you first need to understand why agents and vendors liked keeping them secret. It wasn't accidental. 1. Uncertainty creates competition Imagine a property advertised at: $1.30m–$1.40m but the seller actually wants: $1.50m. A buyer whose maximum is $1.42m may spend several weeks: attending inspections reviewing contracts arranging finance paying for a building inspection paying for contract reviews researching comparable sales emotionally committing to the property turning up to auction. Once that buyer is standing in the crowd and bidding has reached $1.4m, another $5,000 can suddenly feel insignificant. Then another $5,000. Then another. That is how auctions work. The agent isn't merely selling a house. They are creating a competitive environment, encouraging bidders to out bid each other. It is designed to stroke the ego, face saving, nerves, fear of missing out, etc, so bidders think with their heart, not their brains. 2. Keeping the reserve secret kept more buyers interested If buyers knew from day one that the reserve was $1.5m, anyone with a $1.4m ceiling could simply walk away. That may be sensible for the buyer, but this means a smaller crowd, and it isn't necessarily useful for the seller. More buyers at an auction can create: more bidding stronger competition social proof urgency emotional involvement. Even a bid from the buyer who ultimately has no chance of purchasing the property can help move bidding upwards. 3. It gave the seller an information advantage The selling agent typically knows: how many buyers have inspected how many contracts have been requested what offers have been made which offers have been rejected how interested individual buyers appear the seller's expectations the buyers' budget A buyer usually knows substantially less. Keeping the reserve confidential maintained that information imbalance, which favoured the vendor. Is Mandatory Auction Reserve Price Disclosure Good for Buyers? Yes. And I think buyers should welcome it. The most obvious benefit is that buyers can stop wasting time, emotions and money on properties they realistically cannot afford. Suppose the advertised campaign initially suggests: $1.30m–$1.40m and seven days before auction the reserve becomes: $1.52m. A buyer with a hard ceiling of $1.42m now knows something extremely valuable. They're not likely to get it. So, Don't bother. No emotional auction morning. No unnecessary building inspection. No Saturday wasted standing on someone's nature strip. No convincing yourself that maybe the vendor will sell for less. Move on. That is genuine improvement. But Don't Confuse the Reserve Price With Market Value This is where I think many buyers will make their next mistake. They will see: Reserve price: $1,500,000 and think the property must therefore be worth $1.5 million. No. Wrong. The reserve price tells you what the seller is prepared to accept. It does not tell you what the property is worth. Those are two completely different things. A seller can have a reserve of $1.5m on a property worth $1.4m. They can also have a reserve of $1.5m on a property that competitive bidding eventually pushes to $1.7m. The reserve is a seller's price instruction. Market value is much more complicated. It is determined by evidence and ultimately what competing buyers are prepared to pay. That distinction becomes even more important under the new system. Will Auction Reserve Price Disclosure Stop Underquoting? Not completely. It closes one obvious transparency gap, but it doesn't remove the underlying incentives. Selling agents still have a legal obligation to act for their vendor. Their job is still to generate as much competition as possible and obtain the strongest possible selling price. So agents will adapt. Here are some things I expect we will see. 1. More attention on the first three weeks of the campaign The reserve only has to be disclosed seven days before the auction. A typical Melbourne auction campaign can run for several weeks. That means much of the marketing campaign may still occur before buyers know the seller's final reserve. The early advertised range therefore remains extremely important. 2. More aggressive pre-auction negotiations If a vendor believes a buyer is prepared to make an exceptional offer before the reserve disclosure deadline, there remains every incentive to explore it. Good selling agents will continue testing buyers. Expect questions such as: “What would you pay to stop the auction?” The reserve disclosure rule does not remove negotiation. 3. Vendors may simply set ambitious reserves Mandatory disclosure does not require vendors to set a reasonable reserve. It is not illegal for the vendor to have unrealistic expectations. For example: Comparable market evidence: $1.40m–$1.48m Vendor reserve: $1.58m The disclosure has achieved transparency. It has not magically made the vendor realistic. The property may simply pass in. 4. The disclosed reserve may become the starting line This may be the biggest behavioural change. Previously, buyers often asked: “What is the reserve?” Under the new system they may already know it. But if five genuine buyers all know the reserve is $1.5m, the conversation simply changes to: “How far above $1.5m will it go?” A keen bidder who sees value at the stated reserve price, will simply start the bid at $1.5million. And if several buyers want the property, the reserve becomes largely irrelevant almost immediately. Competition still determines the result. Could Auction Price Reserve Disclosure Increase Competition? Sometimes, yes. Buyers should also understand the reverse could very much be true. It can actually increase competition. Suppose a property initially appears likely to sell for $1.5m–$1.6m. A buyer with $1.55m might decide not to bother. Then the disclosed reserve appears: $1,480,000. Suddenly that buyer thinks: Hang on. I've got a chance. So do several other buyers. Instead of discouraging competition, reserve disclosure is likely to attract more serious bidders. Transparency simply means better information, it doesn't necessarily mean lower prices. What About the Advertised Price in the Campaign? This remains critically important. Victoria's underquoting laws prohibit agents from advertising a property below certain prescribed pricing benchmarks, including the agent's estimated selling price and relevant seller expectations or rejected offers. The new Property Price Statement has also replaced the old Statement of Information (SOI). But buyers should still treat an advertised range as one piece of evidence. It is not a professional valuation and certainly not a promise of the eventual selling price. A competitive auction can legitimately produce a result well above both the quoted range and reserve. A high auction result by itself is not proof of underquoting. Sometimes two buyers simply want the same house very badly. I've attended hundreds of Melbourne auctions, and have seen this happen many times. A $1.5 Million Reserve Does Not Mean You Should Only Pay $1.5 Million You still need to do your preparations for the auction. A $1.5 Million Reserve Does Not Mean You Should Only Pay $1.5 Million. We have a whole guide on Auction Winning Strategies. But in briefly, before attending an auction, a buyer should establish three completely separate numbers. 1. The vendor's reserve What the seller wants. 2. Your assessment of market value What comparable evidence suggests the property is worth. 3. Your maximum purchase price What the property is worth to you, considering your finances, alternatives and circumstances. Those numbers may be very different. For example: Measure Price Vendor reserve $1,500,000 Your assessed market value $1,460,000–$1,510,000 Your maximum price $1,485,000 The fact the reserve is $1.5m doesn't mean you should suddenly find another $15,000. If your research tells you to walk away at $1.485m, walk away. The seller doesn't have to sell to you, and you don't have to buy from them. What Buyers Should Do Under the New Victorian Auction Rules Auction Reserve Price disclosure changes one part of auction strategy. It doesn't change the fundamentals. You still need to do your due diligence. Analyse the property before analysing the auction. Look at: land size building quality renovation level street quality school zones orientation floorplan location nuisances development potential comparable recent sales. Then establish a defensible value range. Should Buyers Protect Themselves in an Auction After Knowing the Reserve Price? If you’re buying at auction in Melbourne (or anywhere in Australia), a few practical strategies help you fight back against the “mystery reserve” problem: 1. Ignore the Reserve Price Range. Do your Independent Homework. Treat the advertised range as marketing, not the truth. Learn the Top 9 Tips to Win Auctions. Look at recent comparable sales Adjust for renovations, location, etc. Build your own value range, then set your absolute walk-away number If the property sells way beyond that, it was never yours in the first place. The full process to manage auction is here. 2. Ask the Agent the Right Questions (and Read the Answers Properly) Now that you know the reserve price, you can still ask: “Has the vendor rejected anything so far?” “If it passes in, what price do they want to see to sell today?” Sales agents will not give you a clean number most of the time. It is their tactical advantage. But their reply, how they reply, often tell you a lot. 3. Decide Whether to Hid, and How If the reserve price looks underquoted compared to reality: You can still attend and bid, but go in with good discipline. Walkaway when you have to. Avoid bidding just because “the crowd is moving” – that crowd isn’t paying your mortgage. If you’re close but not quite in range: Sometimes the smarter move is to let it pass in and see what happens in a private negotiation afterwards, particularly if bidding is weak. 4. Get a Professional in Your Corner Property buying is always stacked against the Buyer. The Seller is supported with: Listing agents Auctioneers Vendor’s advocates Lawyers and conveyancers While the only support on the buying side, is often only Google and nerves. Do you homework diligently or employ a good buyers' advocate who will: Appraise true value, not agent spin Read the campaign strength and buyer expectations Provide live guidance / strategy during auction, whether to push, negotiate prior, or walk away Bid on your behalf, protecting your price and nerves, without getting emotional and revealing your limit Negotiate strongly with the sales agent if the property passes in. Don't be fixated to the reserve This will become increasingly important. If the reserve is disclosed at $1.4m, don't subconsciously conclude: “Okay, $1.4m must be fair.” That is classic price anchoring. Your valuation should ideally be established before the disclosed reserve influences you. Has Victoria Finally Solved Underquoting? No. But it has made an important change. Underquoting isn't caused by one single rule. Neither will it be completely solved by rule changes. It comes from the interaction between: vendor expectations agent price estimates marketing strategy comparable-sale selection buyer competition changing market conditions rejected offers reserve prices. Publishing the reserve removes one piece of uncertainty. It does not remove the auction from market forces. A new property rule change may affect the valuation, the reserve price and market reaction to auctions. Case in point.. the recent tax changes announced in Budget 2026. An auction remains a competitive selling process designed primarily to achieve a good outcome for the seller. Buyers need to remember that. My View as a Melbourne Buyer's Advocate I support reserve price disclosure. I support it because better information allows buyers to make better decisions, not because I think it will suddenly make Melbourne auctions perfectly fair. It will not. If the vendor wants $1.6m and my buyer client can only spend $1.45m, I'd rather know. There is no benefit to my client spending money on due diligence, getting emotionally attached and attending an auction they had virtually no chance of winning. But experienced buyers shouldn't become obsessed with the reserve price either. When assessing properties for our clients, our question has never simply been: “What does the vendor want?” [We do ask this question, but the idea is to watch how the agent respond, rather than genuinely wanting to know the reserve] The more important question is: “What is this property actually worth, and at what price should our client walk away?” And the answer will not be from the sales agent. That approach remains exactly the same under the new Victoria Auction laws. The Biggest Change May Be Buyer Psychology Previously, agents controlled the reserve price, which is one particularly important (but not valuable) piece of information. From October 2026, Victorian buyers get to see that card before auction day. But knowing the dealer's card doesn't mean you automatically win the hand. The seller still has an experienced selling agent. The auctioneer still works for the vendor. Other buyers still have their own budgets, and auction nerves always create emotions, and that can still turn an otherwise rational buyer into someone bidding another $20,000 because they refuse to lose. So use the disclosed auction reserve price is just an added piece of information. It is not a valuation, not a permission to pay that amount. It certainly should not be your maximum bid. Final Thoughts Victoria's new reserve disclosure laws are good news for property buyers. They remove some unnecessary mystery from Melbourne auctions and should prevent buyers wasting time pursuing properties where vendor expectations are clearly beyond their budgets. But do not make the mistake of thinking the new system tells you what a property is worth. The auction reserve price tells you what the seller wants, not what the property is worth, not what the property will sell at. Your own circumstances tell you what you should pay. Those remain different sets of numbers. And understanding the difference between them is far more valuable than simply knowing the reserve. How Can Buyers Protect Themselves in an Auction, Without Knowing the Reserve Price? If you’re buying at auction in Melbourne (or anywhere in Australia), a few practical strategies help you fight back against the “mystery reserve” problem: 1. Ignore the Quoted Price Range. Do your Independent Homework. Treat the advertised range as marketing, not the truth. Learn the Top 9 Tips to Win Auctions. Look at recent comparable sales Adjust for renovations, location, etc. Build your own value range, then set your absolute walk-away number If the property sells way beyond that, it was never yours in the first place. The full process to manage auction is here. 2. Ask the Agent the Right Questions (and Read the Answers Properly) You won’t get the reserve, but you can read between the lines, you can still ask: “What level would definitely buy it prior?” “Has the vendor rejected anything so far?” “If it passes in, what price do they want to see to sell today?” Sales agents will not give you a clean number most of the time. It is their tactical advantage. But their reply, how they reply, often tell you a lot. 3. Decide Whether to Hid, and How If the property looks underquoted compared to reality: You can still attend and bid, but go in with good discipline. Walkaway when you have to. Avoid bidding just because “the crowd is moving” – that crowd isn’t paying your mortgage. If you’re close but not quite in range: Sometimes the smarter move is to let it pass in and see what happens in a private negotiation afterwards, particularly if bidding is weak. 4. Get a Professional in Your Corner Property buying is always stacked against the Buyer. The Seller is supported with: Listing agents Auctioneers Vendor’s advocates Lawyers and conveyancers While the only support on the buying side, is often only Google and nerves. Do you homework diligently or employ a good buyers advocate who will: Analyse true value, not agent spin Read the campaign strength and likely vendor expectations Provide live guidance/strategy during auction, whether to push, negotiate prior, or walk away Bid on your behalf, protecting your price and nerves, without getting emotional and revealing your limit Negotiate strongly with the sales agent if the property passes in. The Case for Getting Assistance from Buyers Advocates. And it is Not Expensive. In Australia and Melbourne, the property buying system is designed heavily in favour of the seller, having someone on your side who plays this game every week isn’t a luxury. It is a risk management necessity. The Buyers Advocates levels the playing field and moves the odds to your favour. If you find yourself struggling with property auctions in Melbourne, do get in touch. Our Auction Bidding and Negotiation service is a cost effective way to maintain disciplined auction bidding, stay focused, bid confidently at auctions, and protect your budget and lessen your stress during auctions. Frequently Asked Questions Does Victoria now require auction reserve prices to be disclosed? Yes. Under Victoria's new property price transparency rules, reserve prices must be published at least seven days before auctions and fixed-date sales covered by the new requirements. The reserve disclosure requirement applies to auctions and fixed-date sales held from 16 October 2026 onwards. When does the agent have to disclose the auction reserve price? At least seven days before the auction or fixed-date sale. Can the agent advertise “$1.5 million+” as the reserve? No. The published reserve must be stated as a single dollar amount, without qualifiers such as “from”, “over”, “+” or “starting at”. Can an auction proceed if the reserve wasn't disclosed seven days earlier? Under the new Victorian requirements, the auction or fixed-date sale cannot proceed unless the reserve has been published for the required seven-day period. Is the reserve price the same as market value? No. The reserve represents the seller's minimum authorised selling price. Market value is what the buyers are willing to pay. Is the reserve price the same as price appraisal? No. A valuation should be assessed independently using comparable sales and other property-specific evidence. Does a property selling above reserve prove it was underquoted? No. Competitive bidding can and do often legitimately push a property substantially above its reserve or advertised range. The sale result alone does not establish underquoting. Should I bid up to the disclosed reserve? Not automatically. Establish the property's value and your own maximum price independently. If your maximum is below the seller's reserve, walking away may be the correct decision. How do I know when bidding has reached the reserve price? Listen for the auctioneer saying something like: “Ladies and gentlemen, we’re now on the market and selling.” That statement means bidding has reached or passed the reserve and, barring anything unusual, the property will be sold to the highest bidder. If you don’t hear those words, the property may still be below reserve and could be passed in. What should I do if I think a property is underquoted? Focus on your own price assessment, not the quote. Check multiple comparable sales (same suburb, similar land size, condition, and location quality). Work out what you think is fair value and your absolute maximum. If the campaign looks obviously underquoted, assume competition will push the price closer to its true market value. If you’re consistently seeing properties sell way beyond where you expect, it may be time to reassess your budget or brief, or get professional help.