Lots of owners fall for the oldest trick in the book: the appraisal trap. Some agents tells you a huge number to get you to sign. Weeks later, they blame the market. It costs you thousands. Understanding this tactic is the first step to protecting your property value.
The trick is common because it works on human greed. We all want the highest price. Still, the highest appraisal is rarely the highest sale price. Buyers determines the price, not the agent. Hiring an agent based solely on the highest quote is a recipe for a failed campaign.
If you sign with the agent who promised the highest price, the clock starts ticking. You launch with high hopes, but reality sets in quickly. The mobile doesn't ring. Showings are empty. That agent then starts the process of "conditioning" you to accept a lower price. This is painful, stressful, and entirely avoidable.
The Overquote Tactic Explained
Insiders call this "buying the listing." An agent knows the home is worth $600k, but tells you $700k to beat the honest agent down the road. When you sign the contract, they have you locked in for 90 days. Realizing you can't leave, so they just wait you out.
Relying on the fact that you have a deadline to sell. Later, desperation kicks in and you lower the price. The sad irony is that you usually end up selling for less than the honest agent quoted you, because the property is now "stale" and shop-worn.
Starting Price Risks Buyer Perception
The start price you set on day one is critical. Buyers have access to data. When seeing a price that is way above comparable sales, they skip it. You miss the chance to create emotional connection. Honest real estate agents tell you the truth upfront.
If buyers scrolls past your ad, you don't just lose a view; you lose a bidder. Websites will stop showing your home if no one clicks on it. Web silence is deadly. Correct pricing keeps the algorithm happy and the buyers clicking.
Stagnant Listings With No Interest
If a listing stalls, it gets stigmatized. They wonder "what is wrong with it?" Even if the house is perfect, the days on market tell a negative story. Ending up selling for less than you would have if you priced it correctly first.
Buyers assume the seller is difficult or the home has hidden structural issues. They make lowball offers because they smell blood in the water. Sellers have lost all negotiation leverage because you have no other interested parties to play them off against.
Cost of Waiting Hurts You
Many sellers say "we can always come down later." This logic is flawed. As you wait for the price to drop, you are paying holding costs. Bank fees, council rates, water rates, and insurance continue to pile up. Owning a home for an extra 3 months can cost thousands in hard cash.
Furthermore, if the market is falling, "testing the market" is dangerous. You may chase the market down, always staying 10% above where the buyers are. After you catch up, the market value has dropped even further. Smart sellers sell quickly to unlock their equity and move on.
Losing Momentum Hurts Value
Speed is money. Buyer momentum drives competition. Lacking bids, there is no leverage. Overquoting kills this momentum. Use data driven real estate advice to set a price that gets bids.
Verifying Price Safety Checks
Look for the evidence. Should a rep gives you a price, ask "show me the 3 sales that prove this." Should they cannot show you 3 comparable homes that sold for that price recently, they are guessing. Ignore "gut feel" or "I have a buyer." Pricing is based on evidence.
See their current listings. See if they have many homes "under offer" or many homes sitting for 90+ days? The agent with lots of stale stock is likely an over-quoter. A pro with lots of "sold" stickers knows how to price correctly.
Real Market Advice Over Optimism
We focus ourselves on telling the truth. Even when it is not what you want to hear, honest advice saves you money. Displaying you the hard data so you can make an good call. Select an agent who respects you enough to be real.
further reading details