What Victoria's new comparable sales rules mean for buyers

Consumer Affairs Victoria has introduced guidelines that change how selling agents choose the comparable sales behind a quoted price range.

What the guidelines require

• Agents must choose properties that are genuinely comparable in condition, location and sale date
• They must take into account level of renovation, land size, school zone and proximity to amenities
• They must be prepared to provide documentation showing how their chosen comparables were selected

That last point is the meaningful one. Having to justify a comparable in writing is a very different standard to picking whichever three sales support the number you already wanted.

What it should improve

More transparency, and more accountability where underquoting has been systematic. If an agent knows they may have to show their working, the selection tends to get more honest.

What it does not change

A quote is still an estimate, not a guarantee. It will always be a range, and the market can still run past it on the day. The rules also only work as well as they are enforced, and enforcement consistency is the open question.

Where the market sits

Melbourne dwelling values rose 0.3% in October according to CoreLogic, a fifth consecutive month of growth. Eastern suburbs clearance rates have been in the low 70s, with new listings still around 12% below the five-year average.

The practical takeaway

Better rules are welcome, but they do not replace your own assessment. Pull your own comparables, weight them for condition and land, and set your own number before the campaign sets one for you.

Note: this is general advice and does not take into account your objectives, situation or needs. Please consider whether it is suitable for you, and speak to a professional before making any financial decisions.