Many selling agents defend underquoting by saying that the market dictated the price and competition drove it up beyond expectations. In some instances, and within limits, this is certainly true.
In the case of the below property situated in a blue ribbon part of Roseville, our agents felt that this property was heavily underquoted. The selling agent was quoting a price of “over $1.2 million”. After inspecting this property, our agents immediately thought that this property would sell for over $1.5 million.
In the end, this property was sold for $1.61 million. That is an astounding $400,000 above the price quoted during the marketing campaign.
Our advice to all buyers is to listen to the price guide quoted by the selling agent but don’t rely entirely on it to base your decision on how much to offer or bid at Auction. Rely on your own research and data collection to arrive at your own estimate of the worth of the property.
About Oliver Stier
Oliver J. Stier is the Director of OH Property Group, a leading Sydney buyers agency. He studied Quantitative Economics and Finance at Cambridge University (UK), University of Toronto (Canada) and Princeton University (USA). In addition to being a licensed real estate agent, Oliver also holds the Chartered Financial Analyst (CFA) designation.