A data-driven reality check for Bass Coast property owners

The "Price It High, Negotiate Down" Myth

Here's what I hear at least twice a week: "Let's price it high. We can always come down if we need to. It gives us room to negotiate."

It sounds logical. It feels safe. It seems like smart strategy.

And it's completely wrong.

But don't take my word for it. Let's look at what actually happened in Inverloch in 2025.

I analysed every property sale in Inverloch last year. I found 35 properties that suffered price reductions of 20% or more. These aren't hypothetical scenarios—these are real addresses, real sellers, and real money lost.

The numbers are staggering:

• Total dollars lost: $8.2 million across these 35 properties
• Average loss per property: $235,000
• Average price reduction: 25.7% from initial asking to sale price
• Average days on market: 316 days (nearly a full year!)

The worst case? 28 Victoria St, which started at $1.45 million and sold for $860,000 after 443 days on the market. That's a $590,000 loss.

Or 27 Norman Rd, listed initially at $1.3 million, sat for 561 days (that's a year and a half!), and finally sold for $730,000. Half a million dollars left on the table.

Here's what actually happens when you overprice your Inverloch, Wonthaggi, or Cape Paterson property:

Week 1-2: You get solid inspection numbers. Buyers are curious. They walk through, take photos, say positive things. You think the strategy is working.

Week 3-4: Inspections drop by 60%. Buyers have moved on to properties that are priced realistically. Your listing is now being used by buyer's agents as a comparison tool: "See, this one's been sitting for a month at $750k, so our offer of $680k on that other property is very fair."

Week 5-8: You're getting 1-2 inspections per week. Every buyer who walks through knows it's been on the market too long. They're looking for problems. "What's wrong with this place that it hasn't sold?"

Week 9+: Your property is stale. Agents aren't even bothering to show it. New listings are getting the attention. And when you finally drop the price? Buyers wonder what you're hiding.

In my 10+ years in the Bass Coast market, I've watched this scenario play out hundreds of times. And here's the data that should terrify overpriced sellers: properties that sit for more than 60 days sell for an average of 8-12% less than they would have if priced correctly from day one.

Let me put that in real numbers for our local market. A property worth $850,000 that sits overpriced for 90 days before reducing will typically sell for $748,000-$782,000. That's $68,000-$102,000 left on the table—plus three months of rates, insurance, maintenance, mortgage payments, and the stress of wondering why it's not selling.

The Market Doesn't Care About Your Numbers

I had another conversation recently that perfectly illustrates the disconnect between what sellers think their property is worth and what the market will actually pay.

The seller had inherited a property in Inverloch. They told me: "We need $880,000 minimum. That's what we owe on our investment property plus what we need for the deposit on our next place."

I showed them the data: six comparable sales in the past 90 days, all between $685,000 and $785,000. Average days on market: 42 days.

Their response? "But we NEED $880,000."

Here's the brutal truth that every seller in Bass Coast needs to understand: the market doesn't care what you need. It doesn't care what you paid. It doesn't care what you spent on renovations. It doesn't care about your next purchase or your mortgage balance.

The market cares about one thing: what buyers will pay today.

Your house is worth exactly what a qualified buyer will offer, a bank will lend on, and an appraiser will support—in current market conditions. That's the formula. Everything else is wishful thinking.

The Renovation Cost Fallacy

"But we spent $120,000 on renovations!"

I hear this constantly. And I understand the frustration—you invested real money into improving your property. You made smart choices. You have receipts.

But here's what the data shows: in the Bass Coast market, you typically get back 30-50% of renovation costs at sale. Sometimes more, sometimes less, but rarely dollar-for-dollar.

That $120,000 you spent on a new kitchen, bathroom, and deck? The market might value it at $45,000-$60,000 over a similar unrenovated property. The rest? That was money you spent to enjoy living in your home. It's not equity.

I know that stings. But consider this: would you rather hear this truth from me now, or discover it after 90 days on the market when you're forced to reduce your price anyway?

This is where my 91.9% list-to-sale price accuracy comes from. Not from telling sellers what they want to hear, but from showing them what buyers will actually pay. My average time on market is 63 days across all properties in 2025, compared to 115+ days for many competitors. The difference? We price based on data, not hope.

Let me show you exactly what overpricing cost real Inverloch sellers in 2025. These aren't made-up scenarios—these are actual properties you can verify:

The Solution: Transparent Competition, Not Wishful Thinking

Here's the irony that kills me: sellers overprice because they're afraid of leaving money on the table. They think "if I start at $850k, someone might pay $900k."

But as we've seen, that strategy costs them an average of $235,000 and nearly a year of their life.

What if there was a way to price correctly AND get the highest possible price?

This is exactly why we've implemented Openn Offers for our Inverloch listings in 2026. It solves the fundamental problem: how do you know you're getting the best price without overpricing and sitting on the market?

How Transparent Online Offers Change Everything

Traditional private treaty creates fear and uncertainty:

• You list at $850k
• One buyer offers $800k
• You counter at $825k
• Are there other buyers? You have no idea
• Did you leave money on the table? You'll never know

Openn Offers creates transparent competition:

• You list at realistic market price: $799,000
• Interested buyers can see there are 4 active bidders
• Offers are visible to all participants
• Competition drives the price naturally
• Final sale: $847,000 - $48,000 above your asking price
  

The Data Backs This Up

According to Openn's national data:

• 24% of properties sell $50,000+ above asking price
• 3x more engaged buyers compared to traditional methods
• 24/7 real-time updates on offers
• Sellers see exactly what's happening - not wondering if you left money on the table

Real World Examples

We recently sold a property in Tamara Crescent using Openn Offers:

• Listed at $1,095,000 - $1,150,000 (realistic market price based on comparables)
• Three buyers registered and tracked the property
• Transparent bidding created urgency
• Final sale: $1,125,000
• Great Result: in just 36 days

Compare that to the traditional overpricing approach:

• Listed at $1,250,000 (overpriced)
• Sits for 200+ days
• Reduces to $1,100,000, then $1,050,000
• Finally sells for $995,000
• Result: $130,000 below market value after 6+ months

Why This Works in Bass Coast

Our market has evolved. Melbourne buyers researching Inverloch properties expect transparency. They can see:

• Every comparable sale
• Days on market for every listing
• Price reduction history
• Market trends in real-time

When you overprice, they know. When you use transparent competitive bidding, they engage.

The psychology is completely different:

• Overpricing: "They're dreaming. I'll wait for the price to drop."
• Transparent bidding: "There are 3 other buyers. I need to make my best offer now."

The Fear of Underpricing

I know what you're thinking: "But what if I price it at $749k and it only gets one offer at $750k? Didn't I just underprice it?"

No. Because:

1. If it's truly worth more, competitive bidding reveals that. The Ramsey Boulevard property proved this - listed at $749k, sold for $788k because genuine buyer competition drove the price.
2. If it only gets one offer at asking price, that confirms you priced it correctly. You didn't leave money on the table - you found the market price efficiently without wasting months.
3. The alternative is proven to fail. We have 35 Inverloch properties from 2025 that lost an average of $235,000 trying to "protect against underpricing" through overpricing.
   

How We Use This For Your Advantage

When I take on a new Inverloch listing, here's our strategy:

1. Price it based on recent comparable sales - not hope, not need, but data
2. Market it comprehensively - professional photography, virtual tours, targeted digital advertising to our 30,000+ social following
3. Use Openn Offers to create transparent competition - buyers can see activity, which drives engagement and better offers
4. Close faster at a better price - average 63 days on market vs. the market average of 115+ days



You get the best of both worlds: accurate pricing that attracts buyers, plus competitive dynamics that maximise your sale price.

The Bottom Line

After analysing 204+ property sales in Inverloch alone, and handling hundreds of transactions across Bass Coast, I can tell you with certainty: overpricing is the single biggest reason properties don't sell.

Not poor marketing. Not bad timing. Not difficult buyers. Price.

The market rewards sellers who price correctly from day one. It punishes those who don't. There's no emotion in that statement—it's just data.

You have two choices:

Choice A: Price it based on what you want, hope, or need. Watch it sit. Reduce it multiple times. Sell it for less than you could have months earlier, after bleeding thousands in carrying costs and stress.

Choice B: Price it based on what the market will actually pay today. Get multiple offers. Create competition. Sell quickly for at or above asking price. Move on with your life.

I know which one I'd choose.

If you're thinking about selling in Inverloch, Cape Paterson, Wonthaggi, Venus Bay, or anywhere in the Bass Coast region, I'd rather have one hard conversation with you upfront than watch your property sit on the market for months because I told you what you wanted to hear.

That's not the kind of agent I am. It's not how I won RateMyAgent Agent of the Year 2025. And it's not how I achieve results that are demonstrably better than traditional agents.

Want to know what your property is actually worth? Not what an algorithm guesses, not what you hope, but what buyers will genuinely pay in today's market?

Let's have that conversation.

Leo Edwards
Principal & Licensed Real Estate Agent
Inverloch @realty
RateMyAgent Agent of the Year 2025