Dodgy real estate agents who put misleading price estimates in property listings in NSW could face tougher penalties of up to $110,000 fines.

The proposed reforms are cracking down on underquoting, when an agent gives a buyer a property price lower than the estimated selling price to attract more buyers and create a competitive auction.

Examples of underquoting also include when an agent or advertisement asks for "offers about $900,000" or "$900,000-plus", which the state said does not provide buyers with enough information if the property is within their price range.

While the practice is already illegal, the draft legislation hopes to increase consequences to ensure buyers are not wasting their time and money pursuing homes out of their reach.

Agents could face increased penalties f

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