Overpaying for a property is one of the most common and costly mistakes Australian buyers make. The good news is that with the right analysis, it is entirely avoidable. Here are the 5 key signals that you may be overpaying — and what to do about it.
1. The Agent Cannot Justify the Price With Comparable Sales
The single most reliable test of whether a property is fairly priced is comparable sales analysis. If the selling agent cannot show you genuine comparable sales — same suburb, similar property type, similar land size, sold within the last 90 days — that support the asking price, treat it as a red flag.
2. The Price Estimate Range Is Suspiciously Wide
When agents quote a wide price range — for example, $1.1M to $1.4M — they are either genuinely uncertain about value or deliberately creating room to move. A well-priced property in a transparent market should have a tighter price band.
3. The Property Has Been on the Market Longer Than Comparable Properties
Days on market is one of the most honest signals in real estate. If similar properties in the suburb are selling in 3-4 weeks and this one has been sitting for 8-10 weeks, the market is telling you the price is wrong.
4. You Are Bidding Against Yourself
If you are making offers and the agent keeps asking you to come up without any evidence of competing buyers, you may be the only genuine buyer in the market for this property at this price. That is information you can use in your negotiation.
5. Your Emotional Attachment Is Driving Your Decision
The most dangerous overpayments happen when buyers fall in love with a property and stop thinking analytically. The question to ask is: would I pay this price for a different property with the same characteristics in the same suburb? If the answer is no, you are paying an emotional premium.
How to Assess True Market Value
- Pull the last 10 comparable sales in the suburb from the past 90 days
- Adjust for differences in land size, bedrooms, bathrooms, condition and street
- Calculate a price per square metre range for the land and per room for the dwelling
- Apply a 5-10% negotiation buffer to your assessed value
- Set a walk-away price before you make any offer
How a Property Advisor Can Help
A Collings Property Advisor conducts independent comparable sales analysis, provides a market value assessment and develops your negotiation strategy before you make a single offer. For $4,500 + GST flat fee, it is the most cost-effective way to make sure you pay the right price.
Frequently Asked Questions
What is a reasonable amount to negotiate off a property asking price?
In most Australian markets, 3-8% below asking price is a reasonable negotiation range in normal conditions. In a buyers market, 10-15% is possible. A Collings Property Advisor can tell you what is realistic in your specific suburb at the current time.
Can I do my own comparable sales analysis?
Yes, using Domain and realestate.com.au sold data. The challenge is knowing which sales are truly comparable and how to adjust for differences. That is where professional analysis adds the most value.
Is it worth paying for a property advisor just to check if I am overpaying?
Yes. On a $900k purchase, avoiding a 5% overpay saves you $45,000 — ten times the cost of the advisory fee.
Access off-market opportunities, portfolio tracking, investment tools and property insights powered by GeeVee AI. Join free at collings.com.au/portal
Find your next property with Collings
Track suburbs, get matched to on-market and off-market listings, and manage your whole property search in one place. Access the Collings property portal.
