Unlocking Buyer Benefits: How Overpriced Properties in Sydney Lead to Long-Term Savings

Hey Buyers! There’s an opportunity for Sydney Property Buyers to bag a bargain at the expense of unrealistic Vendors.

When considering the Sydney real estate market, the notion of overpriced properties might raise eyebrows among potential buyers. However, a deeper understanding reveals that these seemingly costly listings can, in fact, offer significant advantages to savvy buyers in the long run. Read on to find out why overpriced properties in Sydney can pave the way for a better deal over time.

1. The Overpricing Pitfall

In a rising market, sellers are often tempted to overprice their properties with minimal perceived risk, often they can expect greater gain. However, in a normal or declining market, this strategy often backfires, leading to underselling. Overpricing can deter potential buyers and cause the property to linger unsold.

2. The Power of Market Rate

Contrary to common belief, vendors who price their property at market rate increase their chances of selling above market price, even in a declining or stagnant market. Listing at the right price point attracts more motivated buyers who recognize the value and potential for negotiation. This is where an emotional Buyer may be trapped into overpaying for a property, perceiving it to be good value and then being outbid by other buyers who perceive the same.

3. Avoiding the Win/Lose Scenario

Vendors (and their Selling Agents) who overprice turn the best buyers off their home, which then languishes on the market unsold. The vendors have unintentionally set up a win/lose negotiation: ‘I will only sell if the buyer overpays.’ Naturally, many buyers reject this equation.

4. The Stale Listing Syndrome

A property that sits on the market for an extended period can become unattractive to potential buyers. For the Vendor, it’s often better to withdraw the property from the market temporarily but many don’t if they have to sell or if they get bad advice from the Selling Agent.

Most buyers are reluctant to step forward on a home that has gone stale in the eyes of the market. This is a huge opportunity for patient BUYERS who understand the power of such ‘stale’ properties.

5. The Digital Age Dilemma

In today’s digital age, every property has a digital footprint, and potential buyers can easily access its advertised history. Overpricing and failing to sell over an extended period can provide valuable information to educated buyers during negotiations.

6. The Auction Conundrum

Even the auction process can produce failed campaigns. Overpricing can lead to less interest and a reduced number of bidders. Today however we seem to have the opposite problem where Selling Agents are underquoting. Astute buyers are steering clear of these auctions as well with raised eyebrows. Fair market value will always benefit the Seller in attracting the right buyers and obtaining the best price. Interestingly, overpricing and under-pricing will benefit the Buyer, more.  

7. Deciphering Fair Market Value and Holding Selling Agents Accountable

Determining the fair market value of your property can be challenging, especially when emotions are involved. Market fluctuations and agents’ tendency to under or overquote further complicate matters. To navigate this, insist on evidence-based pricing from the Selling Agent but going on step further, consider being represented by a Buyer’s Agent – they will give you comparative market evaluations and unbiased advice.

8. Fair Competition

A property that is priced at fair market value often fosters healthy buyer competition. Sellers are more ready to negotiate, while buyers are motivated to make competitive offers. This approach maximizes the number of potential bidders. This can be seen as a win/win situation for both. However, if you THE BUYER wish to secure a ‘bargain’ it can be better to look to those ‘stale’ properties that have been on the market for longer than usual. Then you will meet with a realistic and motivated Seller.

9. Sydney Property Buyer’s benefit greatly from having a BUYER’S AGENT by their side.

Buyer’s Agents take away the emotional aspect of the search and purchase ensuring that you don’t overpay for a property that looks amazing, and they will see beyond those over-priced properties that have been on the market for a while and perhaps don’t present as well.

We at House Hunters ensure that the location and the ‘bones’ of the property are just as important as all your other requirements. This will give you longevity and greater contentment in the long run.