In Victoria, the vendor’s statement – often called a Section 32 – is a comprehensive disclosure document you must provide to potential buyers before selling your property. Preparing this statement, along with costs like land tax clearance and potential loan break fees, are key considerations when planning a sale in 2026. While vendor confidence has improved, recent RBA rate hikes are introducing new caution into the market. A typical Melbourne auction campaign runs for four weeks from listing to auction day.
The vendor’s statement is a legal requirement designed to provide buyers with all material facts about the property. It’s a crucial part of the sales process, and ensuring it’s accurate and complete is paramount. While the process remains consistent, understanding the associated costs and current market conditions is vital for a smooth sale.
What does a vendor’s statement include?
The Section 32 includes details about the property itself – its title, planning restrictions, and any mortgages or caveats. It also covers outgoings like council rates and owners corporation fees (if applicable). You’ll need to provide an owners corporation certificate if the property is strata titled, costing between $100–$300. Preparing the statement is usually handled by your conveyancer as part of their overall fee, but confirm this upfront.
What costs should I prepare for when selling?
Beyond conveyancing and the Section 32, several often-overlooked costs can impact your net proceeds. If you have a fixed-rate loan, be aware of potential break costs. Land tax clearance is required at settlement, and any outstanding amounts will be deducted from the sale price. You’ll also need to account for a pro-rata adjustment of council rates. For strata properties, body corporate levies will also need to be addressed.
What if I’m selling at auction?
If you choose to sell via auction – a common method in Melbourne – you and your agent will agree on a reserve price *before* the auction begins. This is legally required in Victoria. A typical campaign lasts around four weeks, with two open for inspections per week. Auctioneer fees generally range from $400–$1,000 and are often included in the overall marketing package. If bidding reaches the reserve, the property is “on the market” and will sell unconditionally.
The timing risk
While vendor confidence improved through late 2025, with Woodards Real Estate and Raine & Horne reporting strong listing and appraisal numbers, the February and March 2026 RBA rate hikes have introduced a degree of caution. Domain’s Dr Nicola Powell notes buyer urgency has dampened as a result. This means accurately gauging buyer appetite and setting a realistic reserve price is more critical than ever, and the timing of your sale could significantly impact the outcome.
Frequently asked questions
Will I get a higher price if I wait to sell?
It’s difficult to say. While listings were up nearly 40% since December 2025 (Raine & Horne), the recent RBA rate increases have introduced caution. Properties are still selling marginally faster than the decade average (Cotality, March 2026), but buyer urgency has decreased. A thorough market appraisal from a local Fletchers agent is essential.
What happens if my property doesn’t sell at auction?
If bidding doesn’t reach your reserve price, the property is “passed in.” The highest bidder then has the first right to negotiate with you privately. Consumer Affairs Victoria (CAV) has specific rules governing this process, ensuring fairness for both parties. You are not obligated to accept any offer.
How long does the settlement process take?
Settlement in Victoria typically takes 30–90 days post-contract signing, with 60 days being the most common timeframe for standard residential transactions. This allows time for finance approval, building and pest inspections, and the transfer of funds. Your conveyancer will manage this process on your behalf.
What is underquoting and is it still a problem?
Agents must not advertise a property below the vendor’s reserve or their estimated selling price. However, price guides set 10–15% below eventual sale prices remain common, particularly in inner and middle-ring Melbourne suburbs. Consumer Affairs Victoria investigates complaints, so ensure your reserve aligns with your agent’s advertised guide.
Questions to ask your agent
- Based on recent comparable sales, what is a realistic price range for my property, considering the current market conditions?
- Can you provide a detailed breakdown of all costs associated with selling, including marketing, conveyancing, and potential loan break fees?
- What is your strategy for managing buyer expectations and ensuring a transparent sales process, particularly regarding price guides and reserve prices?
This article contains general market information based on data current
as at April 2026. It does not constitute financial, legal, or real estate
advice specific to your property or circumstances. For an appraisal and
tailored advice, speak with a Fletchers agent in your area.