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Empower Wealth Blog post by Empower Wealth

Auction Reserve Price: What Victoria’s New Rules Really Mean for Buyers

For years, Victorian buyers have walked into auctions not knowing what the seller would actually accept. You’d study the price guide, do your sums, and then watch the bidding sail $200,000 past it.

That’s starting to change. For residential auctions and fixed-date sales held from 16 October 2026, agents must publish the seller’s auction reserve price at least seven days before the sale.

On paper, it sounds like the transparency buyers have been asking for. In practice, it’s a little more complicated. Here’s what’s changed and what it means for you.

So what is an auction reserve price?

Simply put, it’s the lowest price a seller is willing to accept at auction. If bidding doesn’t reach it, the property is usually passed in.

Under the old system, sellers often set their reserve late in the campaign, sometimes on the morning of the auction.

Most of the time, if you’ve done enough due diligence, you would know roughly what’s the market price sits.

But unprepared buyers could be left working from a price range that might have had little to do with what the seller actually wanted. Obviously, for those buyers, this could mean lost time and out-of-pocket expenses that are not necessary to begin with such as contract review and building and pest inspection costs.

What’s changed?

The new rules from Consumer Affairs Victoria now states that the agent now has to ask the seller for their reserve in writing, along with the agent’s own recommendation and the reasons for it. Once the seller confirms the reserve, it has to be published as a single dollar figure at least seven days before the auction. Wording like “from”, “over” or “+” isn’t allowed.

If the reserve isn’t published in time, the auction can’t go ahead.

The rules also apply to fixed-date sales, so a campaign that asks for offers by a set date and time is covered too. On top of that, a new Property Price Statement replaces the old Statement of Information, and final sold prices now have to be published.

Here’s the catch: the reserve isn’t the value

This is the part most buyers miss. A published reserve tells you the lowest price the seller will accept. It doesn’t tell you what the property is worth, or where the bidding will finish.

As we’ve always said on the podcast, every property is different, and it only takes two buyers who really want the same home to push the price well beyond what similar sales suggest. A well-presented home with strong interest can clear its reserve by a wide margin on auction day.

It works the other way too.

A seller can still accept less than their reserve on the day. And paying under the reserve doesn’t automatically mean you got a bargain. If the reserve was set too high to begin with, you could still pay more than the property is worth.

That’s why your own research matters more than ever. The reserve is the seller’s number. Your price should be based on comparable sales, the property itself and, most importantly, what makes sense for your budget and your long-term goals.

Why some buyers might miss out

Some sellers may play it safe and set a reserve on the high side. Buyers see the number, decide it’s out of reach and stay home. Then on auction day, as the seller adjusts to the market sentiment, the property sells for less than the published figure. Don’t forget, sellers are human too. Some may be going through big life changes that make a quick, certain sale more important than holding out for top dollar. We unpacked this in Episode 80: The Four ‘D’ Words That Equal a Motivated Seller.

Reaching the reserve doesn’t force a seller to sell either. So the published reserve shouldn’t decide on its own whether a property is worth pursuing.

And if you’re hoping to secure the property before auction by offering above the reserve, don’t count on it. In the lead-up to auction, a seller can turn down an offer above the reserve simply because they’d prefer to let the auction run.

So if a home ticks your boxes and you’ve done your homework, it’s often worth turning up anyway. Before auction day, it’s also worth asking the agent whether the property will be on the market straight away if bidding reaches the reserve.

Are you afraid of auction or aren’t sure what that homework should look like? That’s a coming thing! Which is why we’ve produced a PRE-Purchase short video series on The Property Couch that walks buyer through the whole buying journey, from creating their property brief and researching suburbs to negotiating, bidding at auction and settlement. Don’t hesitate to check it out. And of course, if you’re still unsure and would like a professional to help you in your buying journey, our buyers agent team would love to help as well.

Early days: what the first week showed

The first week under the new rules brought a sharp drop in Melbourne auctions. According to Cotality, 500 homes went to auction in Melbourne in the week ending 18 October 2026. That compares with 703 the week before and 1,142 in the same week last year.

Melbourne, usually the country’s auction capital, accounted for most of the fall across the capital cities.

However, it’s too early to say how much of this is down to the new rules. Across the capital cities, auction numbers had already been running more than 30% below last year since mid-August, and four interest rate rises this year are adding to the caution. Only 489 Melbourne auctions are scheduled for this coming week, about 70% fewer than the same week last year, so the market is clearly still adjusting.

What this means for your next purchase

The new rules don’t change the basics of buying well. They make them more important. Knowing what a property is worth to you, before you see the reserve, is still your best protection. Here are a few things worth keeping in mind:

  • Know your numbers early. The best time to buy is when you can comfortably afford it, not just because you’ve spotted a “good deal”. Before you start looking, get your borrowing capacity and pre-approval sorted, so you can negotiate or bid with confidence rather than stretching on the spot. With four interest rate rises already this year, this matters more than ever.
  • Set your own price before you see the reserve. Look at recent sales of similar properties nearby and decide what the home is worth to you. That way, the seller’s number doesn’t anchor your thinking.
  • Use recent sold price data. Final sale prices now have to be published, so you can see how other properties in the area sold compared with their reserves. Over time, this will give you a clearer picture of how the local market really behaves.
  • Check the comparable sales yourself. The new Property Price Statement includes comparable sales, but they’re chosen by the agent. Look at a few more of your own before relying on them.
  • Do your due diligence before the auction. In Victoria, auction sales are unconditional, with no cooling-off period, so have the contract reviewed and any inspections done beforehand.
  • Don’t rule a property out on the reserve alone. If it ticks your boxes and fits your budget, it may still be worth turning up on the day.
  • Decide your walk-away price and stick to it. Auctions can get emotional. A firm limit, set calmly beforehand, helps you avoid paying more than the property is worth to you.
  • Get support if you need it. If you’re not confident valuing a property or negotiating with agents, an independent buyers agent who works only for you can help.

Want to learn more?

We’ve unpacked the new rules in two recent episodes of The Property Couch:

And if you’re getting ready to buy, our free 10-part video series, PRE-Purchase, walks you through every stage, from creating your property brief and researching suburbs to negotiating, bidding at auction and settlement.

Frequently asked questions

Do sellers have to sell if bidding reaches the auction reserve price?
Not necessarily. The reserve is the seller’s minimum, not a commitment to sell.

When did the new auction reserve price rules start? The rules began on 1 October 2026. They apply to auctions and fixed-date sales held from 16 October 2026.

Can a reserve price change after it’s published?
Yes however, this means the 7-day period starts again. Refer to Consumer Affairs Victoria’s industry Q&As here for more details.

Can I make an offer before the auction? Yes, if the seller has agreed to consider pre-auction offers. Your offer goes through the agent, usually as a signed contract. If the offer is accepted less than three clear business days before the auction, you don’t get a cooling-off period.

What happens if a property is passed in? A property is passed in when bidding doesn’t reach the seller’s reserve and it doesn’t sell under the hammer. The highest bidder usually gets the first chance to negotiate with the seller straight after the auction.

Ready for your Next Step?

If you’re considering buying at this point in time and would like to understand how our team could help, request a free appointment via the form below.

Whether it’s your first home, next home or an investment, we’d love to hear what you’re looking for.

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