HOT MARKET DOESN’T MEAN HOT PRICE!
07 Oct 2025| Posted by: Dave Tidbold
Achieving a sale and receiving the very best possible price is not necessarily the same outcome for many sellers. The irony is that sellers are more likely to undersell in a strong market than they are in a soft market.
The reason being that, in a hot market, a seller’s minimum price expectations are achieved quite easily, so there tends to be a lack of focus on the maximum price buyers are prepared to pay.
The reason being that, in a hot market, a seller’s minimum price expectations are achieved quite easily, so there tends to be a lack of focus on the maximum price buyers are prepared to pay.
The big question is, how do you avoid underselling your property.
Sellers in a strong market need to stay focused on each interested buyer’s maximum price and not their own minimum price, or a price the buyers’ ‘want’ to pay.
Research shows buyers want the lowest price, but rarely ever pay the most they are willing to pay.
Buyers are quoted saying, ‘The agent never asked for my highest price’, and ‘The price guide we were given was less than we were prepared to pay’.
It seems typical real estate methods are inherently flawed and are costing property sellers sometimes in the vicinity of 5%, or approximately $40-$50k.
Traditional Real Estate systems and commission-only agents are typically known to focus on attaining your declared minimum price rather than on finding out each buyer’s maximum price.
Tips to Avoid Underselling
Avoiding underselling your property requires ensuring certain components of your marketing campaign and the agent’' skills do not weaken your chances of achieving the maximum price.
- Here’s a few helpful tips: Choose a sales team, not just a commission only agent. Most agents are like ‘Jim’s mowing’ franchises. They operate on their own out of their home and do not have other team members to help sell the property
- Set an asking price, not a bait price. Typical agents love no price and use low bait pricing tactics to lure buyers. Obviously, this gets low offers, and you will sell for a lower price. Buyers always want to know what the lowest price is which a seller will go down to. A set asking price takes the guesswork out of it and becomes the target in the negotiations
- Keep your reason for selling confidential. Every buyer wants to know why you are selling, to see if they can secure the property at a lower price.
- Flexible inspection times. Public open houses are designed to save agents time and find other sellers. But as a seller, you need an agent focused on your sale and to be available at all times to suit the buyers.
- Advertising copy should be enough to make a buyer curious, not scare them away with too much detail. There is an old advertising slogan, ‘sell the sizzle, not the sausage’.
- Interview your prospective agent by asking good questions about how they work. Get them to explain in detail and don’t just accept a glossy answer.
Get them to explain in detail and don’t just accept a glossy answer. Is the agent competent and likeable? Being likeable is not enough when selecting the right agent. The agent must demonstrate and prove to you they will negotiate the buyer’s maximum price.
At Tidbold Real Estate our approach is different. We employ a genuine team of salespeople on a high salary with performance incentives, linked to the results they achieve.
This means when selling your property, our collaborative approach goes well beyond that of the typical single agent.
If you are looking for an experienced and trusted agent, please reach out to one of our team on 3207 6000.
Remember, if you sell with us you will be safe. We offer you our SMARTRE SALE Strategy which includes a NO SAL E, NO CHARGE service with ZERO upfront advertising costs, and of course a written SERVICE GUARANTEE.
