What to do if you think a property is underquoted

Has yet another property sold for way above its price guide? Did you ever have a chance? Here are the three things you can do if you suspect a real estate agent is underquoting

This house is frowning at the thought that someone could even consider underquoting.

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When you find a property you love, there is no worse feeling than going through the process of buying a building and pest report, attending multiple inspections, having the contract reviewed and organising a deposit — only to see on auction day that it sells for well above the range that the property is guided.

There are three key things that you can do to make sure that a property is guided fairly and that you aren’t being led down a rabbit hole.

1. Ask the agent if they have comparable sales for the property

All agents should be able to present at least three properties that are similar in size and specification as examples. Pro Tip – make sure these have been within the last three months. The property market is fluid so if a comparable is included from the start of the year it just isn’t an accurate reflection of the current day conditions.

It’s a great big market out there, with many different price points.

2. Do your own research on properties that have sold

Buyers are able to access more information than ever before to help them make informed decisions. Just because you were given three comparable properties by an agent doesn’t mean that there are other properties with merit that didn’t make their list or even that their data is accurate. I once had a case of a property used by an agent as a comparable sale which was listed as sold for $2,750,000 on their information booklet at the property yet it had actually sold for $2,600,000. This shows that you should always confirm data yourself.

3. Call a different local real estate agent

Chances are that agent either appraised the property or would know what it is worth and why. Getting a second opinion from someone who works in the industry is a wise move. They may have useful information about the agent too that would be beneficial such as if they are high volume, prefer running properties through to auction or if they have a reputation for quoting fairly.

By doing your own due diligence on the price of a property you are able to form an independent opinion of the value which is vital to making the right decision. From there you can determine if it is the right home for you and come up with a strategy based on your own budget of how you can best succeed in securing the property.

Dan Grantham is a buyer’s agent with Oasis Skeen Property.

Originally published as What to do if you think a property is underquoted