A good Buyer Agent who has experience in the industry should be able to explain price quotes to you. They should have greater clarity than most buyers around how each property is quoted and why it is quoted that way.
Some agents quote close to the reserve and some quote substantially under. Plus there has also been a lot of controversy around this recently.
We have seen more inconsistency this year than in a very long time with Melbourne property price quotes.
That is why it is important to know your prices before you buy. Do your research to make sure you are not wasting time on the wrong properties that you may not be able to afford.
With many interstate investors returning to the Melbourne property market, we are seeing a steady increase in property prices.
Melbourne Property prices do fluctuate though, as it’s never an exact science when emotion is involved. Particularly if someone is buying a home and not an investment property.
How do you know though, if it is going to sell within the quote, just over or way above?
Maybe you don’t. Especially if you have just started looking. Or if the market has moved upwards since you began your search.
Often, we hear people say things like, “wow that place sold so cheaply” and more often than not, there is a reason for it.
There might be some major structural problems or mould issues. Or it may not be in the best of locations.
Your Buyer Advocate should be able to give you a clearer indication of what they think a property might sell for. Therefore, you should look to someone who has longevity and experience in the industry and can advise on price and if a property is worth pursuing or not.
Every real estate company will quote differently to the next one. Hence, it is important that you do your homework and know what you are buying,
As experienced and trusted Buyer Agents, we know the market well. We tend to know the difference between a low quote and a more realistic quote. We also know what makes a property more popular than others.
There can be so many variables as to why a property sells for more or for less than expected. Knowing this, can only come from years of experience as a Melbourne Buyers Agent.
Especially now, that we are in Spring and are seeing Melbourne property prices move up very quickly, with many property sales exceeding Vendor expectations.
Simple Tips to help you with underquoting & finding that ideal property.
- Investigate the property online.
- Click on the map to see if there is anything of major concern that may affect the price. For example, does the property back onto a factory or a main road?
- Look at what other similar properties have sold for recently and how to they compare to the one you are considering?
- What are the features of the home? Are there any standout features that may increase the price? For example, 2 bathrooms, studio, better than normal off street parking for the area.
- Is it a place that is likely to attract investors as well as home buyers which may push up the price?
- Is the property on larger land which might appeal to developers and home buyers. ie/ over 550sqm or on a corner block.
- Does the home you’ve inspected have better quality fixtures and fittings then most other properties you’ve seen?
- Is the home on a busy road or quiet street?
- Compare properties from the last few weeks to months, not years for a more accurate indication on price.
Know what you are looking for and what you will compromise on.
Never assume a quote is always accurate and that is what the property will sell for. At least 80% of the time (if the property is going to auction around Melbourne, or even if it is an EOI), it will sell above the quoted price.
With more properties coming online and more buyers out there looking and the Melbourne Spring market heating up, know what you want. What you don’t like and what you are prepared to compromise on.
Many buyers want that illusive perfect first home that doesn’t exist.
No matter what you buy, there will always be a compromise of some sort. Generally that comes down to either location or size of the home. So a good question to ask yourself is, what I am more willing to compromise on?
If you are still not sure where to start. Consider using a Buyers Advocate who has experience. One who has the runs on the board with excellent Google Reviews and won’t waste your time referring you the wrong properties that you may not have the budget for.
Until next time, regards,
Melinda & Team.