How to Tell if You’re Looking at a Bargain or a Dud?
One of the biggest mistakes Sydney buyers make is assuming that if a property hasn’t sold after four or five weeks, there must be something wrong with it. Sometimes that’s true. But some of the best purchases we’ve ever made for clients were properties other buyers had already written off.
Earlier this year we purchased a terrace in Stanmore that had been sitting on the market for more than five weeks. Most buyers assumed there was a problem. There wasn’t. It launched during school holidays, was overpriced initially, had poor photography and an unclear floorplan. We secured it for 10% below the original guide.
Here are five reasons why good properties sometimes sit on the market.
Reason 1: It is Overpriced
Initial pricing strategy plays a critical role in determining a property’s trajectory in the market. When a property is launched above its true market value, it can deter early buyer engagement, which is typically the most active phase of a campaign.
The first four weeks of a listing generate the highest levels of online engagement and inspection attendance. In fact, the highest level of interest and turnout is usually during the first week on market. If a property is mispriced during this window, it risks missing its peak exposure period.
Even if the vendor later adjusts expectations, the damage is often done. Buyers may have already dismissed the property, and it becomes stigmatised as “overpriced” or “stale”. This creates a lag between price correction and renewed buyer interest.
From a strategic perspective, an overpriced launch can convert a strong asset into a perceived risk, despite no change in its intrinsic value. This is one of the main reasons why vendors are so heavily invested in selecting the right agent.
But the market can soften during a campaign and if the price guide is not adjusted accordingly, the property risks becoming overpriced. We are currently seeing a number of properties that launched just before the Albanese Government’s budget still sitting on the market. The homes themselves haven’t changed. What has changed is buyer confidence and borrowing capacity assumptions. Sellers who anchored their expectations to conditions from two or three months ago are now discovering the market has moved.
With buyers increasingly factoring in higher holding costs and reduced borrowing power, many sellers are forced to adjust their price expectations if they want to achieve a sale.
Reason 2: The Marketing Is Poor
Effective marketing is fundamental in presenting a property accurately and compellingly. However, it is not uncommon to encounter campaigns undermined by substandard execution.
Common issues include:
- Low-quality photography that fails to capture natural light or spatial proportions.
- Incomplete or misleading floorplans that obscure functional layout.
- Generic or poorly written copy that does not articulate key value drivers.
Domain and REA Group research consistently show that listings with professional photography and detailed floorplans generate significantly higher engagement rates. In Sydney’s competitive environment, where buyers often shortlist properties online before inspection, weak marketing can materially reduce inspection numbers.
A well-located and structurally sound property can remain overlooked simply because it was not presented effectively at first impression.
Common examples are properties advertised for sale by owner with no selling agent involved. But occasionally, good agents get it wrong too.
Several years ago, we bought a very successful investment unit for a client in Summer Hill that was being marketed by one of the top local agents at the time. However, the online “head shot” of the property was simply a photo of the plain brick façade. It was underwhelming and gave no indication of the high ceilings and period features of the unit inside.
Reason 3: It Launched at the Wrong Time
Timing can materially influence a property’s performance, regardless of quality. Several external factors can suppress buyer activity during a campaign period.
These include:
- School holiday periods, when family buyers are away and therefore less active.
- Long weekends and public holidays, which disrupt inspection attendance.
- Federal or state elections, which can introduce uncertainty.
- Interest rate volatility, particularly during tightening cycles.
For example, during periods of rapid interest rate increases in 2022 and 2023, buyer sentiment in Sydney softened noticeably, leading to longer days on market across many suburbs, despite stable underlying demand.
When a property is launched during a subdued period, it may fail to generate competitive tension. Even if conditions improve shortly thereafter, the listing may already have lost momentum.
Reason 4: The Agent Targeted the Wrong Buyer Segment
Accurate buyer targeting is essential for effective campaigns. However, mismatches between property type and target audience occur more frequently than many assume.
Examples include:
- A family home marketed primarily to downsizers, despite its proximity to schools and parks.
- A low-maintenance apartment promoted to investors, when it may better suit owner-occupiers seeking lifestyle convenience.
- A prestige property marketed broadly, without focusing on the specific demographic most likely to transact at that price point.
Each buyer segment evaluates property through a different lens, including factors such as yield, lifestyle, schooling, or long-term capital growth.
When marketing does not align with the most relevant audience, enquiry levels can fall short, and the property may remain on the market longer than warranted. The most astute selling agents are masters at targeting the right buyer pool either on their database or more broadly.
Reason 5: Buyers Assume There Must Be a Problem
Perhaps the most influential factor is collective buyer psychology. When a property does not sell quickly, many buyers assume that others have identified an issue.
Common assumptions include:
- Structural defects or building concerns.
- Legal complications such as easements or zoning restrictions.
- Unfavourable strata reports or high levies.
- Overpricing or unrealistic vendor expectations.
While these concerns are sometimes valid, they are not always the cause. In many cases, the extended time on market is attributable to one or more of the factors already outlined, rather than any inherent flaw.
This phenomenon creates a feedback loop. As more buyers avoid the property, its time on market increases further, reinforcing the perception that something is wrong.
For experienced buyers’ agents, this dynamic can present opportunities to identify assets that are fundamentally sound but temporarily overlooked.
Identifying Opportunity Versus Risk
Distinguishing between a genuine issue and a temporary market inefficiency requires careful analysis. This involves:
- Reviewing comparable sales data to assess true market value.
- Conducting thorough due diligence, including building and strata reports.
- Evaluating the quality and timing of the marketing campaign.
- Assessing buyer demand within the specific suburb and property segment.
In Sydney’s complex and highly competitive property market, surface-level indicators such as days on market are insufficient on their own. A property that has been listed for several weeks may represent either a risk or an opportunity, depending on the underlying cause.
Conclusion
The next time you see a property that’s been sitting on the market for five or six weeks, don’t automatically dismiss it. Ask why. Sometimes the answer is a defect. Sometimes the answer is an opportunity. Knowing the difference can save or make hundreds of thousands of dollars.
Conversely, buyers should not assume that a property which sells after one open home is automatically a great property. Strong marketing, underquoting, emotional buyer competition and scarcity can all create urgency around an asset that may not represent the best long-term purchase.
For Sydney buyers, the critical challenge lies in separating perception from reality. Investigating why a property has remained on the market is essential in determining whether it represents a hidden risk or a strategic opportunity.
At Buyer’s Domain buyers’ agents, we apply data-driven analysis and extensive market experience to identify these distinctions. In a market as nuanced as Sydney, informed decision-making is not simply advantageous, it is essential.
