FEBRUARY MARKET UPDATE

Underquoting to return as the market shifts

If history has taught us anything, it’s that when the property market starts to shift, so does the strategy agents employ—and underquoting is about to make a big comeback.

With an interest rate cut just confirmed, buyers were already starting to re-emerge in force well before the decision was passed down. At Infolio, already signed up more clients in January than in nearly 20 years. Pent-up demand has been building fast, and where there’s demand, there’s competition. And where there’s competition? You guessed it—price guides that are wildly out of step with reality.

Beware the Too-Good-To-Be-True Price Guide

We’re already seeing price guides well below market value. In many cases, homes that seem comfortably within a buyer’s budget are actually well beyond their reach. The reason? Agents are understandably treading cautiously. After a slower market cycle, they don’t want to pitch prices too high. Many agents – like buyers – are testing this new market and are keen to get buyers through the door and bidding. And it’s going to result in sale prices that are wildly above price guides.

And you can bet the media will be all over this soon. Expect headlines screaming about “underquoting being rife”—because it absolutely will be. But I caution you to not blame the agent – this often isn’t an agent’s fault. Quoting can be sensitive and based on other factors such as a vendor’s expectations.

A Perfect Storm: Cautious Pricing Meets Surging Demand

The combination of nervous agents pricing conservatively and eager buyers flooding back in will create a perfect storm. We’re already seeing properties blow well past their advertised price guides, leaving buyers frustrated, disillusioned, and often out of pocket for building inspections on homes they never had a real chance of securing.

How to Protect Yourself

So how do you avoid the trap?

• Know the market, not just the price guide – Research comparable sales, not just what’s listed.
• Expect competition – If it looks too good to be true, it probably is.
• Get expert advice – A buyer’s agent can cut through the noise, assess true market value, and give you a real shot at securing the right property at the right price.

If you’re serious about buying in 2025, now’s the time to be proactive. Don’t get played by the pricing game—get ahead of it. Talk to us – book a free 15 minute discovery call for help navigating this market.

Lauren Staley
Managing Director
Infolio Property Advisors.