Overpricing is the most expensive mistake Auckland vendors make. Here's how pricing actually works, what to avoid, and how to set a number the market will respond to.
I've seen vendors leave real money on the table by starting too high. It sounds counterintuitive — surely asking for more gives you room to negotiate? But that's not how buyers behave in practice. Getting the price right from day one is one of the most valuable things I do for my vendors.
Why Overpricing Costs You More Than It Saves
When a property hits the market, it gets its strongest attention in the first two weeks. That's when buyers who've been waiting jump. If your price is too high, those buyers don't even make an offer — they just move on to the next listing. As the weeks tick by and the listing sits there, buyers start wondering what's wrong with it. The longer a property stays on the market, the more negotiating power shifts to the buyer. You end up chasing the market down with price drops, and each reduction signals desperation. By the time you reach a price you should have started at, the momentum is gone.
The RV Trap: Why Rateable Value Is Not Your Price Guide
I hear this regularly: "But the RV (Rateable Value) is $1.2 million, so that's what we want." I understand the logic, but it's a common trap. RVs are set by Auckland Council every three years based on a mass-valuation process. They're not a reflection of current market value — in a rising or falling market, they can be significantly off. Some properties sell well above RV. Some sell below. Using your RV as a price guide is a bit like using a three-year-old trade-in valuation to price your car today. The market has moved.
What a Proper Market Appraisal Actually Uses
A credible market appraisal is based on recent comparable sales (often called "comps") — properties similar to yours that have actually sold in the last 3-6 months in your suburb. Size, condition, section area, location, and property type all factor in. This is evidence, not guesswork. It's the same methodology a registered valuer uses, and it's what buyers' agents and banks use to assess whether a price is fair.
Buyer Search Brackets: A Practical Reality
Most buyers search online using price brackets — for example, "$900k to $1m" or "$1m to $1.1m." If you price your property at $1.05 million, you're invisible to every buyer searching under $1 million. That might be a large chunk of your natural buyer pool. A small pricing adjustment can put your property in front of significantly more qualified buyers. This isn't about underpricing — it's about positioning yourself where the buyers are actually looking.
"Buying the Listing": A Warning
Some agents will tell you what you want to hear about price to win your business. They'll quote a high appraisal figure to get the listing, then come back two or three weeks into a flat campaign asking you to drop the price. In the industry this is sometimes called "buying the listing." The Real Estate Authority (REA) has guidelines around this, but it still happens. If an agent's appraisal is noticeably higher than everyone else's without a clear evidence-based reason, treat it as a red flag rather than good news.
Auction: Letting the Market Set the Price
One of the genuine advantages of selling by auction is that you sidestep the pricing dilemma entirely. You set a reserve — the minimum you'll accept — and the market tells you what buyers are willing to pay through competitive bidding. In a strong market, auctions regularly deliver results above expectations because competition does the work. Your reserve is private; your result is determined by demand.
The Right Number Is Based on Evidence, Not Hope
I'm direct with my vendors about price because I think they deserve honesty, not flattery. A realistic starting price, backed by solid comparable sales data, gives your campaign the best possible chance of delivering a strong result. That's the difference between a property that sells confidently and one that lingers.
If you'd like to find out what your Auckland property is worth, I'd love to help. A free market appraisal takes about 30 minutes and gives you a clear picture of where you stand — whether you decide to sell with me, with someone else, or not at all. Book your free market appraisal today.
Kellys Osorio
Licensed Salesperson, Barfoot & Thompson
