Countless vendors fall for the oldest trick in the book: the appraisal trap. The agent tells you a huge number to get you to sign. After that, they blame the market. This 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. Sellers want the highest price. However, the highest appraisal is rarely the highest sale price. Buyers determines the price, not the agent. Selecting an agent based solely on the highest quote is a recipe for a failed campaign.
When you sign with the agent who promised the highest price, the clock starts ticking. You start with high hopes, but reality sets in quickly. Calls doesn't ring. Viewings are empty. The agent then starts the process of "conditioning" you to accept a lower price. It is painful, stressful, and entirely avoidable.
Buying Business Explained
We call this "buying the listing." The agent knows the home is worth $600k, but tells you $700k to beat the honest agent down the road. If you sign the contract, they have you locked in for 90 days. They realize you can't leave, so they just wait you out.
They rely on the fact that you have a deadline to sell. Later, desperation kicks in and you lower the price. The bad 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.
Initial Price Matters How Buyers See It
Your number you set on day one is critical. Buyers use access to data. If they spot a price that is way above comparable sales, they ignore it. Missing the chance to create emotional connection. Honest real estate agents tell you the truth upfront.
Should a buyer 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. The online silence is deadly. Fair value keeps the algorithm happy and the buyers clicking.
The Overpricing Cycle And No Offers
After a listing stalls, it gets stigmatized. People ask "what is wrong with it?" Though the house is perfect, the days on market tell a negative story. You finish selling for less than you would have if you priced it correctly at the start.
Buyers assume the seller is difficult or the home has hidden structural issues. Submitting lowball offers because they smell blood in the water. You lose lost all negotiation leverage because you have no other interested parties to play them off against.
Cost of Waiting Adds Up
Many sellers say "we can always come down later." This idea is flawed. While you wait for the price to drop, you are paying holding costs. Mortgage interest, council rates, water rates, and insurance continue to pile up. Sitting on a home for an extra 3 months can cost thousands in hard cash.
Also, if the market is falling, "testing the market" is dangerous. One might chase the market down, always staying 10% above where the buyers are. By the time you catch up, the market value has dropped even further. Good vendors sell quickly to unlock their equity and move on.
Lost Buyer Interest Hurts Value
Speed is money. Buyer momentum drives competition. No tension, there is no leverage. The trap kills this momentum. Rely on data driven real estate advice to set a price that gets bids.
How to Spot an Inflated Appraisal Before You Sign
Look for the evidence. Should a rep gives you a price, ask "show me the 3 sales that prove this." If they cannot show you 3 comparable homes that sold for that price recently, they are guessing. Reject "gut feel" or "I have a buyer." Valuation is based on evidence.
Review their current listings. Do they have many homes "under offer" or many homes sitting for 90+ days? Someone with lots of stale stock is likely an over-quoter. An agent 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. We prove you the hard data so you can make an smart choice. Pick an agent who respects you enough to be real.
Buyer psychology in real estate