Three Steps to Predicting a Selling Price without the Guesswork

We’ve seen it countless times before, when buyers attempt to predict the likely selling price of a property. In other words, they use the notion of guesswork to add or subtract value to an agent’s quoted range. 

According to the Cambridge Dictionary, Guesswork is defined as ‘the process of making a guess when you do not know all the facts.’ It accurately describes the question that often crops up from our clients; one that requires us to carefully explain that applying a calculation via a general rule of thumb or guesswork, can be risky if the appropriate due diligence is not conducted.

This is why we’ve come up with a three-step process to helping predict a selling price, sans the guesswork. It’s important to note, that while these three steps are handy ways to further understand a property and seller’s position, the reality is that often agents and agencies have different approaches to quoting.

1. Undertake Comparable Sales Analysis

Don’t always rely on the agent to provide an accurate quote for a property. Under-quoting and over-quoting do occur within the real estate industry whether we like it or not. This is why it’s absolutely imperative to undertake comparable sales analysis, whether that be by yourself or with the assistance of a Buyer’s Agent. In most cases, a buyer who has done the appropriate legwork will always have a better understanding of a property’s true value.

2. Uncover the Motive for Selling

There’s more to a property’s value than its history and the current market conditions. To better predict a selling price of a property, we suggest finding out more about the campaign itself and dig into the vendor’s purpose for selling. Understand their preferences around settlement and if you can, their motivation for selling the property at that point in time. Agents can often omit this information from their selling strategy, however from experience we know that it’s not hard to identify a highly motivated vendor. Look out for vendors that are happy to disclose their reserve and strike up conversation specifically around the vendor’s settlement preferences. Would they sell prior to auction? These are all questions to find the answers to.

3. Sus the Competition

Competition in a hot property market can be tough, and sometimes deflating. However, understanding your competition can help you by going into an auction prepared or putting your best foot forward with a private sale. Getting to know the agent, having genuine conversations and asking the right questions can provide invaluable insight to the competition. Be direct, don’t beat around the bush and you’ll come out feeling cool and confident. Some questions to ask an agent include, ‘how many building inspections have been completed?’ or, ‘how many contracts have been requested?’ or even, ‘how many live bidders do you expect to be at the property on auction day?’ While these questions are just a guide, take the time to talk with family and friends about their experiences talking to agents and how they successfully sussed the competition.

And at the end of the day, we always remind clients that guesswork is guesswork. Unfortunately, until the hammer is down, we do not know all the facts. The property market moves fast, and motives can move quicker. This is why due diligence, following the three steps above, is critical in your property buying journey. Agents, vendors, and properties can all vary, and it’s important to feel comfortable you’ve done the lions work early. Take the time to be sure the property isn’t hiding any structural or historical issues and that when you do get the keys to your property, it’s everything you dreamt of and more. The list of things to check with a property prior to buying is long, but you will save yourself time, energy and happiness in the long-term if this list is thoroughly completed.

Here is one last reminder to remove the guesswork from buying property. Alongside completing your homework, engage in a professional Buyer’s Agent to help you through the process. We understand the big issues, such as zoning, or unusual levies, and we lessen the likelihood that a property will be under or over-valued, ensuring you always end up with the very best deal.

Why Use a Buyer's Agent in Melbourne?

Your Australian Property Buyers Agents lives and breathes property and knows the Melbourne Property Market! We at Your Australian Property Buyers Agents offer comprehensive end-to-end support from identifying and analysing your selected properties to dealing with selling agents, attending property inspections, purchase negotiations and / or auction bidding on your behalf. 

Our Independent Buyer’s Agents in Melbourne, will take the time to understand your situation and work out what your individual needs, specific requirements and property goals are, so we can begin searching for your next property. 

To get in touch with us today, please complete our Enquiry Form so we can discuss your objectives and outline our process in clear and simple terms.

What our Clients are Saying about Your Australian Property Buyers Agents

Your Australian Property Buyers Agents is a five-star rated business and it’s because we put our clients first. We promise to be responsive and to truly listen to what our clients need. We're surrounded by noise in the property market – Our goal is to cut through it.

With over 30 years of experience, we know what it takes to buy property seamlessly. Patience is key, but never at the compromise of confidence and our clients’ end game. We’re professional in every facet of our work, dealing with our clients with the utmost integrity and honesty.

When clients engage Your Australian Property Buyers Agents, they can expect Buyer’s Agents that are proactive and passionate. Combining a hard work ethic with passion and attention to detail, we help clients achieve their property goals with ease.

Your Australian Property Buyers Agents is a five-star rated business and it’s because we put our clients first. We promise to be responsive and to truly listen to what our clients need. We're surrounded by noise in the property market – Our goal is to cut through it.

With over 30 years of experience, we know what it takes to buy property seamlessly. Patience is key, but never at the compromise of confidence and our clients’ end game. We’re professional in every facet of our work, dealing with our clients with the utmost integrity and honesty.

When clients engage Your Australian Property Buyers Agents, they can expect Buyer’s Agents that are proactive and passionate. Combining a hard work ethic with passion and attention to detail, we help clients achieve their property goals with ease.

Next Step

If you’re Serious about Purchasing the Right Property at the Right Price, then Working with an Expert Buyer’s Agents is the Smartest Purchasing Strategy There Is!

Simply fill out the Enquiry Form below to get Started.