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In today’s fast-paced market, one of the most common traps real estate agents fall into is making assumptions about property value without doing the proper groundwork, writes Adrian Bo, CEO of Adrian Bo Real Estate Training & Auctions.
There are still outdated, and overly simplistic approaches being used to determine a property’s worth – many of which can seriously undermine both campaign strategy and client trust.
Over-reliance on algorithm-based platforms
Platforms like RP Data and CoreLogic are excellent tools for reference – but they’re just that: tools, not the full picture.
These platforms are built on algorithms and averages, meaning they often lack the context and nuance that real-world market assessments require. They don’t consider:
- Lifestyle appeal (e.g. north-facing backyard, quiet cul-de-sac, and ocean glimpses).
- Quality and scope of renovations.
- Future capital improvement potential.
- Land size, orientation, and aspect.
- Emotional factors driving local demand.
Using data in isolation – without walking through the property, understanding buyer sentiment, or comparing to current on-market stock – can lead to overpricing or underpricing, both of which carry costly consequences.
Regurgitating the vendor’s dream price
Another dangerous habit is simply repeating back what the vendor hopes to achieve without challenging it or anchoring it in reality.
While it’s important to align with the vendor and understand their goals, agents are engaged to be the expert, not the echo. The risk is that by adopting the vendor’s “dream figure” without evidence, the campaign is set up for misalignment from day one – leading to longer days on market, price reductions, and often a breakdown in trust.
Using outdated comparable sales
The value of a home is constantly evolving, and agents must reflect that. Relying on sales from two or three months ago is no longer accurate in most marketplaces.
Agents should be referencing sales from the past 30 days – ideally within the last two weeks – to ensure that pricing advice reflects what buyers are currently willing to pay.
Valuers, who often assess properties post-sale, also follow this practice. Their reports are based on the most recent, relevant and directly comparable evidence available, not outdated or inflated figures.
What agents should be doing instead
To avoid these costly assumptions, agents need to shift their valuation approach from passive to proactive. Best practices include:
- Factoring in buyer demand and sentiment in the local area.
- Understanding emotional drivers that can impact perceived value.
- Having open, honest conversations with vendors about where their property realistically sits within the current market.
This is where real estate becomes both an art and a science – data is essential, but context is everything.
Valuing property is never just about the numbers – it’s about understanding the complete picture. Agents who rely too heavily on data platforms, or default to telling vendors what they want to hear, are not only doing their clients a disservice but also risking the success of their own campaigns.
By adopting a more thorough, thoughtful and market-responsive approach, agents can deliver better advice, build greater trust, and ultimately achieve better results.
Adrian Bo is the CEO of Adrian Bo Real Estate Training & Auctions.
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