An honest and accurate property appraisal is not just a box to tick. It is the foundation of a successful sale. In a competitive real estate market, some sellers and agents may feel tempted to set an inflated asking price in the hope of achieving a premium result. However, overpricing a property is a high-risk approach that often costs sellers time, money, and valuable market momentum.
The Stigma of a Stale Listing
When a home is listed well above its fair market value, it often struggles to attract genuine interest during the most important phase of the campaign. The first few weeks on the market are when buyer attention is at its peak.
Scaring off buyers: Experienced buyer agents closely track market activity and can quickly identify an overpriced property. Many will dismiss it altogether, assuming the seller is unrealistic or unwilling to negotiate.
Wasting prime time: Once the price is eventually adjusted to a competitive level, the property has already been sitting on the market for too long. Buyers may begin to question why it has not sold, creating doubt about the home’s condition or appeal. Regaining lost momentum at this stage is extremely difficult.
The Downward Cycle of Price Reductions
One of the most damaging outcomes of overpricing is the need for multiple price reductions. Rather than building excitement, repeated reductions create a negative perception.
Loss of buyer confidence: Frequent price drops signal uncertainty or desperation to buyers and their agents. This often invites low offers, as buyers feel they have the upper hand.
Chasing the market: In a moving market, the property can end up constantly priced above comparable sales. By the time it finally sells, the final result is often lower than what could have been achieved with accurate pricing from the beginning.
The Appraisal Gap Problem
Even if a seller secures an above-market offer, the deal can still fall apart at the appraisal stage.
Finance relies on valuation: Lenders require an independent appraisal to confirm the property’s value. If the appraisal comes in below the agreed price, the bank will only lend based on the lower figure.
Risk of collapse: The buyer must then make up the difference in cash or walk away. Many deals fail at this point. While an honest appraisal protects buyers and lenders, sellers pay the price when expectations are set too high from the outset.
Why Honest Pricing Works
The true value of an accurate appraisal is its ability to align the property with real market conditions.
A correctly priced home:
- Attracts the widest pool of qualified buyers from day one
- Encourages competition, which is the most reliable way to achieve the highest possible sale price
- Reduces the risk of finance-related delays or deal breakdowns
Working with an experienced real estate agent who prioritises data-driven, honest valuations is not settling. It is a strategic decision that reduces risk and increases the likelihood of a smooth, timely, and profitable sale.
For expert guidance built on honesty, transparency, and market data, contact Ash Buyers Agency today. We are here to support you at every stage of the selling process and help you achieve the best possible outcome. Call us on +61 434 111 200 to book your accurate property appraisal.
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