The 3 Big Mistakes Buyers Make When Valuing Property (And How to Avoid Overpaying!)

If you’re buying property in Melbourne or anywhere else in Australia—whether it’s your first home or your next investment—there’s one mistake that could cost you thousands:

👉 Blindly trusting the price range on a property listing.

We see it all the time. The online price guide is just that—a guide. In most cases, it’s set by the selling agent and doesn’t always reflect the true market value of the home.

Here’s how you can  value a property properly—so you don’t get burnt.

Before making any offer, you need to study the market.
Start by comparing the property you’re interested in with 8 to 10 similar properties that were sold in the 6 to 12 months;

Make sure, those comparables are; 

• In the same suburb or within a 2km radius to your property (closer the better). 
• Similar in type (e.g. house vs house, unit vs unit) 
• Similar in land size, number of bedrooms/bathrooms,  
• Similar in conditions. Comparing a fully renovated property to a well maintained property that’s in original condition won’t be a fair comparison.  

Here’s a free way to do this;

Go to the Sold section on Realestate.com.au or Domain.com.au and look at sales from the last 6-12 months

This is one of the most overlooked steps when valuing a property—especially in a fast-moving market.

Let’s break it down.

Say you find a comparable property that was sold 6 months ago for $800,000.
But since then, the property market has grown by 5% (Assumption).

If you base your offer on that old $800,000 figure, you’re underestimating the property’s current value—and could miss out in a competitive bidding situation.

Here’s how to adjust:

• Take the original sale price: $800,000 
• Add the market growth over 6 months (5%) = $40,000 
• The updated current value = $840,000

This is the price you should be using as a guide for your offer today.

The same applies if the market has declined:

If property prices in the area have dropped by 3%, then:

$800,000 minus 3% = $776,000

This is where the real homework begins—and where most buyers go wrong.

Not all homes in the same suburb have the same value. Here’s what to look for:

• School catchment zones – Properties zoned for top-performing public schools can command $50K–$200K premiums.
• Street position & elevation – Quiet streets, homes with views, or elevated blocks often sell for more
• Proximity to lifestyle amenities – Homes near parks, beaches, lakes, cafes, and public transport are always in higher demand

Risk factors – Avoid properties located:

• Near high concentrations of public housing 
• In bushfire or flood zones 
• On main roads or under flight paths 

Ready to buy your next property with confidence?

📞 Book a free consultation with JPSECURE — your trusted buyers agent.