Why is the ‘quoted range’ changing?
Why is the ‘quoted range’ changing?
We have observed an increase in properties where the initial quoted price starts significantly below the property's actual value. As the marketing campaign progresses, the price gradually increases, ultimately selling for an amount well above the original price. Agents are struggling to confidently assess property values due to significant and seemingly inexplicable discrepancies in results. This uncertainty has made them hesitant. As a result, they initially set lower prices to attract potential buyers and then increase the prices once they feel more confident about market expectations. Below are three recent examples.
13 Dominic Street, Camberwell
Original quote range: $1.950 – $2.050 million
Mid-campaign increase: $2.150 - $2.300 million
Sold: $2.580 million (32% above the bottom range)
6A Thanet Street, Malvern
Original quote range: $2.100 – $2.300 million
Mid-campaign increase: $2.200 - $2.400 million
Sold: $2.900 million (38% above the bottom range)
24 Park Grove, Richmond
Original quote range: $1.200 – $1.300 million
Sold: $1.515 million (26% above the bottom range)
This can be frustrating, time-consuming, and disappointing for buyers who are continually priced out of properties they initially believed were within their budget. We take pride in our deep understanding of property values, developed through decades of experience and continuous research on current market sales, trends, and drivers. Our goal is to ensure our clients don't waste time on properties that aren't within their budget.
A rise in off-market transactions.
Over the past month, we have seen a significant increase in off-market properties coming across our desks. Our extensive real estate agent connections across Melbourne offer us these exclusive opportunities, particularly in the Bayside, Port Phillip and Stonnington areas.
Buying off-market requires more than just strong connections with multiple real estate agents; it also demands experience and solid market knowledge to accurately assess a property's value and negotiate effectively. This is especially true for many A-grade properties in Bayside, Port Phillip and Stonnington, where off-market properties often necessitate persistence, patience, and price adjustments before we consider them for our clients. The rise in off-market transactions is primarily because the market is perceived as softer. Vendors fear unsuccessful campaigns, so they prefer testing the market without the advertising costs and with minimal hassle, making this method of selling more appealing.
My parting piece of advice.
If you're tired of spending your weekends viewing average homes that end up selling for more than you're willing to pay, talk to us. We can help by showing you the entire market, including both on and off-market properties, and handling the legwork, such as researching and inspections. This way, you'll only see homes that are perfect for you and likely within your price range.
Contact us today for a free 15-minute discovery call. We may already have your ideal home available off-market.
Lauren Staley
Managing Director
Infolio Property Advisors.
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