From 1 October 2026, Victorian real estate agents will face new obligations when selling residential property by auction or fixed-date sale.
The key change is straightforward: the seller’s reserve price must be disclosed publicly at least seven days before the auction or fixed-date sale.
The reserve must be confirmed by the vendor in writing. Agents must then update or withdraw existing marketing materials so they show the published figure. If the reserve has not been disclosed for the full seven-day period, the agent cannot proceed with the auction or sale.
For sellers and buyers in Melbourne’s southeast: including Chelsea Heights, Bonbeach, Chelsea, Edithvale and surrounding suburbs: this will change how auction campaigns are prepared, assessed and managed.
What is changing from 1 October?
A reserve price is the minimum price a seller is prepared to accept at auction, subject to the terms of the sale and the seller’s instructions.
Under the new Victorian rules, agents handling residential auctions and fixed-date sales must:
- Obtain the reserve price from the seller in writing
- Publish the reserve at least seven days before the scheduled sale
- Display the reserve as a single dollar figure
- Update all advertising and marketing materials
- Withdraw outdated materials immediately
- Ensure the reserve remains publicly available throughout the seven-day period
The price cannot be presented as a range or softened with terms such as “from”, “over”, “plus” or “starting at”.
The purpose is to give buyers a clearer understanding of the price required to secure the property, rather than asking them to attend an auction without knowing where the vendor’s minimum position sits.
According to Consumer Affairs Victoria, the new requirements commence on 1 October 2026. The official guidance also states that the requirements apply to auctions and fixed-date sales held on and from 16 October 2026.
For example, if an auction is scheduled for 16 October, the reserve would need to be published by 9 October to meet the full seven-day requirement.
What does this mean for Victorian sellers?
The change brings the reserve-price decision forward in the campaign.
Previously, many sellers finalised their reserve shortly before the auction, after reviewing buyer feedback, campaign activity and competing offers. Under the new process, the reserve must be settled early enough to be published for the required seven days.
That means your agent will need to discuss the following well before auction day:
- Recent comparable sales
- The property’s condition and presentation
- Buyer enquiry and inspection numbers
- The strength of offers received before auction
- Current competition from similar homes
- Your financial and personal objectives
- Whether the reserve reflects the likely market result
This is particularly important in suburbs such as Chelsea Heights and Bonbeach, where property value can vary considerably between homes depending on land size, renovation quality, position, access to transport and proximity to the beach or local shopping.
A renovated family home on a generous block may attract a very different buyer response from an original property requiring significant work, even when both homes are located only a few streets apart.
Your reserve should be evidence-based
The reserve is not simply an aspirational number. It should be supported by current evidence and aligned with your broader selling strategy.
Your agent should explain how comparable properties have performed, why those properties are genuinely similar and what current buyers are prepared to pay.
In Melbourne’s southeast, useful comparisons may include recently sold homes within the same suburb or nearby areas such as Bonbeach, Chelsea, Carrum or Edithvale. However, location alone is not enough. Land size, layout, construction quality, parking, outdoor space and renovation level all influence the comparison.
A carefully considered reserve can give you confidence while keeping the campaign credible. A reserve that is set too high may discourage qualified buyers. A reserve set too low may not reflect your circumstances or expectations.
The important decision is not only “What is the highest possible price?” It is also “What price gives us a realistic opportunity to sell successfully under the new rules?”
Advertising will need to remain accurate
Once the reserve is set and published, marketing materials must reflect it.
This includes online advertising, printed material and the new Property Price Statement, which replaces the existing Statement of Information for relevant sales.
If the reserve changes, the agent must update the campaign materials. Older advertisements that show inaccurate price information must be amended or withdrawn.
For sellers, this makes it even more important to work with an agent who has a clear campaign process. A late change cannot be treated as a minor administrative update. The seven-day publication period must be protected.
For buyers, it means the information you see online should provide a more reliable indication of the price required to purchase the property at auction or through a fixed-date sale.
The published reserve is not necessarily a guarantee that the property will sell at that price. Other factors still matter, including the auction conditions, the contract, the seller’s instructions and whether bidding reaches or exceeds the reserve. However, it gives buyers a clearer reference point before they decide how to proceed.
What buyers should do differently
The new rules should make auction preparation more transparent, but buyers still need to complete their own due diligence.
If you are considering a property in Chelsea Heights, Bonbeach or another southeast suburb, you should:
- Review the published reserve carefully
Treat it as the seller’s stated minimum position, not as a substitute for your own valuation. - Compare the property with recent sales
Look at homes with similar land size, accommodation, condition and location. A beachside position, school access, busy-road exposure or development potential may materially affect value. - Set your maximum budget before auction day
Include stamp duty, conveyancing, inspections, finance costs and any immediate repairs or improvements. - Check the contract and vendor statement
Price transparency does not replace legal due diligence. Obtain professional advice if you are unsure about the contract, special conditions or property title. - Ask whether the reserve has been published for the full seven days
If it has not, the auction or fixed-date sale should not proceed under the new requirements. - Understand the difference between the reserve and your own limit
The reserve tells you the seller’s minimum position. It does not tell you what the property is worth to you.
The reserve is one part of the buying decision
A published reserve can reduce uncertainty, but it does not remove competition.
If several buyers see value in the same property, bidding may continue above the reserve. This can happen with well-presented family homes close to the coast, local amenities and transport links.
For example, a home in Bonbeach may appeal to buyers seeking a coastal lifestyle, while a property in Chelsea Heights may attract families prioritising space, established streets and access to schools and everyday services.
The right approach is to understand your position before the auction begins. If the published reserve is above your maximum budget, it may be better to step away early rather than become emotionally involved in the bidding.
Fixed-date sales are also included
The new rules are not limited to traditional auctions.
They also apply to fixed-date sales, where a property is marketed for offers by a specified date. In these situations, the reserve must still be confirmed in writing and published at least seven days before the fixed sale date.
This matters because fixed-date campaigns are sometimes used as an alternative to auction. Sellers may prefer a defined timeframe while buyers submit offers before a deadline.
Under the new rules, the process will still require clear price disclosure and compliant marketing. Sellers should not assume that changing the campaign format avoids the reserve-price obligations.
What happens if the rules are not followed?
The seven-day requirement is mandatory.
If the reserve has not been publicly disclosed for the full seven days, the agent cannot proceed with the auction or fixed-date sale. Existing marketing that does not reflect the published reserve must also be updated or withdrawn.
The Consumer Affairs Victoria guidance for agents explains that agents must have the reserve confirmed in writing, publish it as a single figure and update marketing materials once it is set.
These responsibilities place greater importance on accurate campaign planning, timely communication and detailed record keeping.
How Property One can help
For sellers, the best preparation starts before the property is advertised.
At Property One, we can help you assess your likely market position, review comparable sales and plan a campaign that reflects your timing, property and objectives. Our local experience across Chelsea, Bonbeach and Melbourne’s southeast helps us provide practical advice based on the way buyers respond to different homes and locations.
We also manage the campaign from start to finish, including pricing discussions, buyer feedback, marketing updates and auction preparation.
If you are considering selling in the coming months, now is the right time to understand how the new rules may affect your preferred sale method and campaign timing.
For buyers, our buying service can help you identify suitable properties, understand local conditions and stay informed about available opportunities, including properties that may not be broadly advertised.
You can also visit our selling page or contact the Property One team on 03 9773 2826 for tailored advice.
The reserve-price rules are designed to make the process clearer. With the right preparation, they can also help sellers make better-informed decisions and help buyers approach auctions with greater confidence.
Frequently asked questions
Does the reserve have to be published as a range?
No. The reserve must be published as a single dollar figure. It cannot be shown as a price range or accompanied by terms such as “from”, “over” or “plus”.
Can a seller change the reserve after it is published?
A reserve may be changed, but the agent must update the relevant marketing materials. The sale must still comply with the seven-day disclosure requirement.
Does this apply to private treaty sales?
The reserve-price disclosure requirement applies to residential properties sold by auction or fixed-date sale. Different price-advertising rules apply to private sales.
Can an auction proceed if the reserve was published only five days earlier?
No. The reserve must be published for the full seven-day period. If that requirement has not been met, the auction or fixed-date sale cannot proceed.
What should sellers do now?
Speak with your agent early, understand the new timeline and allow enough time to review comparable sales, set the reserve in writing and update the campaign correctly.