Due to reforms made by the NSW Government, when marketing a residential property from 1 January 2016, agents must ensure the following:
- The estimated selling price must be provided in the agency agreement and the agent must give the seller evidence of the reasonableness of this estimate;
- The estimated selling price can be represented as either a single price or a range, as long as the upper limit of the range is not greater than 10% of the bottom figure in the range. This means a range of $500-$550k would be allowed, but not $500k-$600k.
- The estimated selling price must be revised if the current estimate is no longer a reasonable estimate of the likely selling price of the property
- If an estimated selling price is revised the agent must:
- provide the seller with evidence for the revision;
- notify the seller in writing of the revision;
- amend the agency agreement with the revised estimate.
- Any advertisements must be amended with the new estimate as soon as is practicable
- Agents must not communicate or advertise any price information for a property that is less than their estimated selling price.
A seller may as the right to instruct an agent not to reveal the estimated selling price for their property to prospective buyers, if this is the agreed marketing strategy, then the agent should not reveal any price information to buyer (in advertising, in writing or verbally).