How many times have you wished to buy a property, only to be disappointed when it sells outside its advertised range? In Victoria, an average of only 9%* of properties sell at their listed price, with a large majority selling above what the agent listed. Some may call it ‘underquoting’, some may call it a ‘hot market’ but either way, it’s never fun on auction day to see yourself get outbid.
As a home buyer, getting accurate information on property prices is necessary. Our team at REALas understands this; and that is the reason why we have analysed real estate data from the last two years in order to provide you with correct, relevant information.
What did we find?
Compared to all states, Victoria has the largest percentage of properties being sold above their listed value; 2 out of every 3 properties are sold higher than what’s been advertised by the agent.
In 2016, 67% of properties sold above their listed price, and in 2017 the number remained consistent at 65%. In comparison, the New South Wales 2017 average was 46%.
Top 10 underquoted suburbs
Whether it is the demand in the market or clever tactics by agents, there are certain suburbs that are driving these high percentages in Victoria. We analysed data from the first quarter of 2018, and have found the top 10 “overachieving” suburbs in Victoria. If you’re looking in these areas, be prepared to pay more than what you are told.
|VIC||Suburb||% of properties
sold above the
|Source: REALas.com May 2018|
How can this information help you?
Knowing which suburbs have the highest tendency of selling above listing price will allow you to work out an accurate budget. It’s widely understood that a property will rarely sell at the price it was advertised at. However as a property buyer we don’t want to spend more than we have to. By looking at the history of sold prices in the above suburbs, it will give you a good indication of what you’re looking to spend.
If you want to avoid spending above that, then you can use the above list as the ‘Top 10 suburbs to avoid’.