How to Spot Overpriced Properties in Australia

Nothing is worse than buying at the peak of the market. Here are the red flags that indicate a property is overpriced.

1. Days on Market (DOM)

If a property has been on the market for 60+ days in a hot suburb, it's overpriced. The vendor is dreaming. This is your opportunity to negotiate hard.

2. Constant Agent Swapping

If the property has been listed with three different agencies in 12 months, the house isn't the problem—the price expectations are.

3. The "Expressions of Interest" Trap

Sometimes used to hide a price expectation that is totally unrealistic. Be wary of campaigns with no price guide at all.

4. Price Per Sqm Analysis

Compare the property's price per square metre to similar properties in the suburb. If it's 20%+ higher, investigate why.

5. Recent Sale Price vs. Current Listing

On KnowThePrice, see what the property last sold for. If it's listed for significantly more than recent market growth justifies, be cautious.

6. Auction Passed In

If a property passed in at auction and is now listed for private treaty, the vendor's reserve was unrealistic. The current price may still be too high.

How to Negotiate Overpriced Properties

1. Come armed with comparable sales data
2. Know the property's flaws and use them in negotiation
3. Be willing to walk away
4. Use KnowThePrice valuations as evidence

Don't Be the Greater Fool

Check the crowd-sourced value on KnowThePrice before you sign anything. Our community of real buyers tells you what properties are actually worth.