Has anyone ever wondered why houses in Melbourne always seem to sell well over the list price at Auction? A place can be listed for sale with a price range of $690,000 - $760,000 and then get passed it in at $820,000 at Auction. It's strange because deliberate underquoting is illegal in Victoria. I might have found an explanation: Under the rules, a reserve can be set by a vendor at the eleventh hour after a traditional month-long campaign. Vendors are able to set the reserve on the day of an auction, and it can be higher than the advertised price if interest is strong.http://www.domain.com.au/news/under...e-agents-under-investigation-20150824-gj6d42/ Basically, agents can set a "conservative" price to attract buyers during the marketing campaign and then vendors can set whatever reserve price they want on Auction day based on "strong interest" during the campaign. I am not suggesting this is deliberate but I was asked by my agent not to disclose my reserve price until Auction day. In a way, I guess that is fair enough because I don't have a reserve price in mind and I need the agent to advise me of the buyer feedback during the campaign in order to set a realistic reserve on Auction day. How am I supposed to price the property in the meantime? Set the price too high and we won't get the buyers through to give us realistic buyer expectations on price. List too low and we mislead the market, which is wrong. I must say that I find the whole process very confusing. Pricing a property is a lot more straightforward in Perth.