Countless vendors fall for the oldest trick in the book: the appraisal trap. Some agents tells you a huge number to get you to sign. After that, they blame the market. It costs you thousands. Understanding this tactic is the first step to protecting your property value.
The trick is common because it works on human greed. Everyone want the highest price. Yet, the highest appraisal is rarely the highest sale price. Buyers determines the price, not the agent. Hiring an agent based solely on the highest quote is a recipe for a failed campaign.
If you sign with the agent who promised the highest price, the clock starts ticking. You launch with high hopes, but reality sets in quickly. The mobile doesn't ring. Showings are empty. The agent then starts the process of "conditioning" you to accept a lower price. It is painful, stressful, and entirely avoidable.
Buying Business How It Works
Real estate agents call this "buying the listing." They knows the home is worth $600k, but tells you $700k to beat the honest agent down the road. Once you sign the contract, they have you locked in for 90 days. They realize you can't leave, so they just wait you out.
They bank on the fact that you have a deadline to sell. Finally, desperation kicks in and you lower the price. The bad irony is that you usually end up selling for less than the honest agent quoted you, because the property is now "stale" and shop-worn.
Early Pricing Impacts On Market Views
The price you set on day one is critical. People have access to data. If they spot a price that is way above comparable sales, they move on. You lose the chance to create emotional connection. Honest real estate agents tell you the truth upfront.
Should a buyer scrolls past your ad, you don't just lose a view; you lose a bidder. Realestate.com.au will stop showing your home if no one clicks on it. This digital silence is deadly. Correct pricing keeps the algorithm happy and the buyers clicking.
Stagnant Listings And No Offers
When a listing stalls, it gets stigmatized. Everyone asks "what is wrong with it?" Although the house is perfect, the days on market tell a negative story. You end up selling for less than you would have if you priced it correctly in the beginning.
Assuming the seller is difficult or the home has hidden structural issues. Offering lowball offers because they smell blood in the water. You lose lost all negotiation leverage because you have no other interested parties to play them off against.
The Financial Cost of "Testing the Market" Adds Up
People say "we can always come down later." This idea is flawed. When you wait for the price to drop, you are paying holding costs. Interest, council rates, water rates, and insurance continue to pile up. Sitting on a home for an extra 3 months can cost thousands in hard cash.
Plus, if the market is falling, "testing the market" is dangerous. You might chase the market down, always staying 10% above where the buyers are. By the time you catch up, the market value has dropped even further. Wise owners sell quickly to unlock their equity and move on.
Wasting Time Hurts Value
Speed is money. Buyer momentum drives competition. Lacking bids, there is no leverage. The trap kills this momentum. Use data driven real estate advice to set a price that gets bids.
Verifying Price Safety Checks
Look for the evidence. Should a rep gives you a price, ask "show me the 3 sales that prove this." Should they cannot show you 3 comparable homes that sold for that price recently, they are guessing. Ignore "gut feel" or "I have a buyer." Pricing is based on evidence.
Review their current listings. Check if they have many homes "under offer" or many homes sitting for 90+ days? The agent with lots of stale stock is likely an over-quoter. Someone with lots of "sold" stickers knows how to price correctly.
Truth in Selling Beats Hype
Priding ourselves on telling the truth. Though it is not what you want to hear, honest advice saves you money. Showing you the hard data so you can make an informed decision. Hire an agent who respects you enough to be real.
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