Before you sign an authority to sell, the agent must provide you with an estimate of the selling price of your property. This is the price the agent estimates your property is likely to attract, based on their experience, skill and knowledge of the market. It must be recorded in the authority to sell as either a single amount or a price range.
If estimate is recorded as a range, the difference between the top and the bottom figures must not exceed 10 per cent of the bottom figure. For example, a quoted range of $500,000 to $550,000 is $500,000 plus 10 per cent.
This price is not a sworn valuation or a guaranteed selling price and it does not have to be the same as the seller’s asking price or auction reserve price.
Source: Consumer Affairs Victoria