The 3 property prices you need to know
Understand this to position your offer and be successful when buying property.
When buying a property, there are three prices at play:
- The amount you want to pay
- The amount your competition is willing to pay
- The price the seller wants
1. The Amount You Want to Pay
We all want the best house at the lowest possible price and not "overpay" for a property. But price is subjective—what seems cheap to one buyer could be expensive to another.
The reality? Very few people actually overpay for property. Most sales—whether at auction or private negotiation—are driven by market demand, meaning the final price reflects what buyers are willing to pay.
If you’re purchasing off-the-plan from a developer, there may be bundled costs or incentives, which can inflate the price. But in the established market, overpaying is much less common.
Everyone has a spending limit. But if you're at $743,500, and you have the funds, is an extra $5K, $10K, or even $13K really going to make a difference in the long run? The question isn’t if you’ll overpay—it’s if your offer's enough to be the one signing the contract.
2. What Your Competition Is Willing to Pay
You don’t know your competition’s budget, motivations, or how much they value the property. But one thing’s for sure: they also want it for the lowest possible price.
At the end of the day, the buyer who signs the contract is the one who met the market on the day—whatever that happened to be.
Let’s say you have a max budget of $800,000, but you believe this particular property isn’t worth more than $743,500. If it ends up selling for $753,000—did they pay too much?
3. What the Seller Wants
Sometimes, what you and your competition are willing to pay isn’t even close to what the seller wants. That’s why properties don’t always sell—some sellers are holding out for more.
A good sales agent works to align the seller’s price with market conditions. But if their expectations are too high, the property might need to sit on the market (or pass in at auction) before they’re willing to negotiate.
You just need to be ready when that moment comes. And no, it doesn’t always mean you’ll get a bargain—you both may need to give a little for everyone to get what they want.
Price is Just an Idea—Until It’s Sold
No one knows the value of a property until the auctioneer calls “sold” or a contract is signed. Until then, it’s all just guess work and an estimate based on research, market trends, and personal interpretation.
Two buyers can look at the same house and see completely different values.
Bottom line? Don’t let the fear of paying too much stop you from getting the home you want. The price will be forgotten the moment you move in—and in ten years, you’ll probably wish you had bought more at that price.