The Valuation Risk Hidden in Sales

Many sellers fall for the oldest trick in the book: the appraisal trap. The agent tells you a huge number to make you sign. After that, they blame the market. This costs you thousands. Seeing this tactic is the first step to protecting your property value.

This practice is common because it works on human greed. Sellers want the highest price. Still, the highest appraisal is rarely the highest sale price. Buyers determines the price, not the agent. Selecting an agent based solely on the highest quote is a recipe for a failed campaign.

When you sign with the agent who promised the highest price, the clock starts ticking. Starting with high hopes, but reality sets in quickly. Calls doesn't ring. Open homes are empty. That agent then starts the process of "conditioning" you to accept a lower price. It is painful, stressful, and entirely avoidable.

The "Buying the Listing" Phenomenon Revealed

We call this "buying the listing." An agent knows the home is worth $600k, but tells you $700k to beat the honest agent down the road. After 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. Eventually, desperation kicks in and you lower the price. The tragic 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.

Launch Price Effects Buyer Perception

Your number you set on day one is critical. The market has access to data. Seeing 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.

If buyers scrolls past your ad, you don't just lose a view; you lose a bidder. Websites will stop showing your home if no one clicks on it. Internet silence is deadly. Smart pricing keeps the algorithm happy and the buyers clicking.

The Stalling Cycle And No Offers

When a listing stalls, it gets stigmatized. People ask "what is wrong with it?" Even when the house is perfect, the days on market tell a negative story. You finish selling for less than you would have if you priced it correctly early on.

Guessing the seller is difficult or the home has hidden structural issues. Submitting 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.

Money Lost Hurts You

Vendors say "we can always come down later." That plan is flawed. During the 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.

Furthermore, if the market is falling, "testing the market" is dangerous. You may chase the market down, always staying 10% above where the buyers are. Once you catch up, the market value has dropped even further. Good vendors 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. High appraisals kills this momentum. Trust in data driven real estate advice to set a price that attracts buyers.

How to Spot an Inflated Appraisal Before You Sign

Look for the evidence. If they gives you a price, ask "show me the 3 sales that prove this." If the agent cannot show you 3 comparable homes that sold for that price recently, they are guessing. Reject "gut feel" or "I have a buyer." Real estate is based on evidence.

Look at their current listings. See 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.

Honest Advice Vs Inflated Promises

Our team focuses ourselves on telling the truth. Although it is not what you want to hear, honest advice saves you money. Showing you the hard data so you can make an smart choice. Hire an agent who respects you enough to be real.