The Reserve Price Is Now Public — But Don’t Let It Set Your Price
With Victoria’s new property price transparency laws coming into effect this October, buyers will now have access to the vendor’s reserve price before auction day.
That’s valuable information, but don’t mistake the reserve price for the property’s market value.
The reserve tells you the minimum price the vendor has nominated to sell at auction. It doesn’t tell you what comparable properties have sold for, what competition will be like on the day, or what the property is actually worth to you.
Our tip: Do your homework and establish your own maximum price before allowing the advertised reserve to influence your thinking.
Look at genuine comparable sales, understand the property’s strengths and compromises, and set a firm limit based on evidence. If your assessment suggests the property is worth less than the reserve, don't be afraid to walk away. Equally, if a quality property has a realistic reserve, knowing it in advance could help you prepare and bid with greater confidence.
More transparency can be a win for buyers, but the best advantage is still knowing the property’s true value before you raise your hand.