Don’t Be Fooled by the Price Guide – Add 10% Minimum

If you’ve been browsing real estate listings or attending auctions lately, you’ve probably noticed a familiar pattern: the guide price looks reasonable, but the reserve? Often way above it.

This isn’t new. In fact, it’s how the market has operated for years.

Vendors are rarely happy to sell within the quoted price range – naturally they’re hoping for more. And agents? They’re happy to quote low. Why? Because a low quote builds momentum and competition. It’s marketing 101. The price guide gets buyers through the door. The emotional bidding does the rest.

But here’s the catch: there’s usually nothing in writing to say what the vendor actually wants. And often they don’t know, or they may change their mind throughout the campaign. It’s why most buyers expect to pay 10-20 per cent higher than what’s advertised.

So what should buyers do? Wise up. Don’t rely solely on the guide price. Do your own homework. Get familiar with comparable sales and decide what the property is actually worth to you.

What’s Happening in the Market Right Now?

The past quarter has been quieter than many hoped. Stock levels are low, and buyer depth isn’t where it needs to be. In particular, the $3.5M+ segment is struggling, with very little stock and fewer active buyers.

Elwood, for example, has next to nothing available. So if you’re thinking of selling and staying in the area, the question is: sell and move where?

The good news is that agents are pointing to a busy spring. They’re expecting a strong pipeline of listings once we get through the July school holidays, with signs of three to four months of positive growth ahead. But for now, movement is happening mainly at lower price points, and often only when sellers lower expectations or re-list with new agents at sharper pricing.

The bottom line: yes, the game is strategic. Yes, there’s a gap between what’s quoted and what’s wanted. But with the right research and realistic expectations, you can still navigate it wisely. Whether you’re buying or selling, know your numbers and don’t get caught up in the noise.

Lauren Staley

Managing Director

Infolio Property Advisors