If you’re house hunting in Melbourne, there’s one document you’ll want to understand inside and out: the Statement of Information.
Every residential property listed for sale in Victoria must have one. You’ll find it online, handed out at opens, or given to you on request. But too many buyers flip past it without realising just how much it reveals.
Let’s discuss them so you know what to look for, and how to spot when something doesn’t add up.
What is a Statement of Information?
A Statement of Information is a legal requirement under Victoria’s underquoting laws. Its purpose is to provide transparency about the price and ensure buyers are not misled.
Every Statement must include:
- An estimated selling price (either a single figure or a range of up to 10%)
- Three comparable sales
- The median house or unit price for the suburb
This document is more than just a formality. It’s your starting point for understanding whether the price range is realistic, and whether the agent is playing fair.
“This one document tells me everything I need to know about an agent.”
At Parker Buyer Advocates, we use the Statement of Information as a litmus test.
When we see a well-prepared Statement with relevant comparables and a reasonable price range, it tells us the agent knows the local market and respects buyers. It’s a small sign that often points to a well-run campaign and a transparent process.
But unfortunately, we still come across Statements that raise red flags. A common issue? Comparable sales that have little in common with the home being sold.
Here’s an example:
A renovated home on a quiet, tree-lined street is compared to a knockdown on a busy road, just to make the price guide look more attractive.
That’s not just frustrating. It’s misleading. And the law agrees.
What the law says
According to Consumer Affairs Victoria, agents must “take into account similarities and differences between the property for sale and the comparable properties regarding age, build status, neighbourhood features and school zoning.”
In other words, agents can’t just cherry-pick the cheapest recent sales. Comparables must reflect the true condition, location, and lifestyle value of the property for sale.
And there are penalties for getting it wrong. As Consumer Affairs notes, agents could get into serious trouble for underquoting. We’re talking fines over $40,000! And if it’s a really bad breach, they might even lose the commission they made from selling the property.
That’s a strong incentive to take this document seriously, and you should too.
How to spot a fair Statement of Information
Here’s what to look for:
- Comparable sales that match in size, condition, and street appeal. They should be within 2 km (or 5 km if regional), and sold within the last 6 to 18 months.
- Price ranges that reflect market conditions, not wishful thinking.
- A median suburb price that’s no more than six months old.
If you see vague or irrelevant comparables, ask questions. And if you’re unsure, bring the Statement to your buyer’s advocate. It can reveal a lot, not just about the home, but the professionalism behind the sale.
What This Document Really Tells You
The Statement of Information is more than paperwork. It’s a reflection of the agent’s approach, whether they’re playing it straight or playing a game.
If it’s clear, accurate, and backed by relevant sales, it gives you confidence that the campaign is well-managed. If it feels vague or skewed, it’s a sign to proceed with caution.
Not sure how to interpret what you’re seeing?
You don’t have to do it all by yourself.
Book a call with Lisa for expert support in reading between the lines and securing a property with confidence.
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