Last Updated on January 7, 2026 by Andrew Mckiggan
When selling a property, many owners assume the most important challenge is finding a buyer. In practice, one of the greatest risks often appears at the listing stage — before a home ever reaches the market — during the process of choosing an agent and agreeing on an initial price.
This article explains how optimistic appraisals can sometimes be used to secure listings, how a process known as conditioning can follow, and why what happens at the listing stage can quietly reduce momentum, negotiating leverage, and final sale outcomes if not properly understood.
How Listings Are Sometimes Won Before Homes Are Sold
In competitive Australian property markets, sellers may receive noticeably different price opinions from different agents. In some cases, one appraisal may sit well above what recent, comparable sales suggest.
This can occur because pricing guidance plays a role not only in positioning a property, but also in securing the listing itself. When two figures are presented — one conservative and one more optimistic — most people instinctively lean toward the higher number. The figure feels like a possibility, even when the supporting evidence is limited.
“A higher appraisal can feel persuasive, not because it’s proven, but because it aligns with the outcome sellers hope for.”
Once an agency agreement is signed, the relationship dynamic changes. The agent now controls the listing for the agreed exclusivity period, and attention naturally shifts from winning the business to managing the campaign.
The Conditioning Process Explained
After a property launches, buyer behaviour begins to provide feedback. If enquiry levels are lower than expected or inspections are quiet, pricing conversations often evolve.
Conditioning refers to the gradual adjustment of a seller’s expectations after a property has been positioned above what buyers are prepared to pay. This adjustment usually occurs incrementally and is framed around market feedback, buyer hesitation, or comparable properties achieving lower results.
“Conditioning isn’t a single conversation — it’s a slow recalibration of expectations after the market has already spoken.”
By the time this process is underway, the original optimistic appraisal may no longer be referenced. Instead, discussions focus on what needs to change to generate interest.
Why Timing Matters: The Missed “Golden Window”
Buyer interest tends to peak early in a campaign. In many Australian markets, the highest-intent buyers inspect a property within the first two weeks of it appearing on major portals.
This early period is often described as the golden window — the point at which competition, urgency, and negotiating leverage are strongest.
If a property launches above buyer expectations, this window can be missed. Even if the price is adjusted later, the momentum created by early competition is difficult to recover.
“Once the first 14 days pass without traction, the campaign often shifts from maximising interest to managing expectations.”
The relationship between early pricing, buyer momentum, and final outcomes is explored further in how inaccurate property appraisals and early overpricing can weaken sale outcomes, which breaks down how appraisal assumptions affect negotiations in practice.
What Conditioning Can Cost — In Real Terms
The impact of conditioning is often underestimated because it doesn’t appear as a single, visible loss. Instead, it accumulates quietly through reduced competition and weakened negotiating leverage.
To illustrate how this can play out, consider a simplified example.
Example scenario:
A property is appraised at $850,000, despite recent comparable sales suggesting buyer interest is strongest closer to $800,000–$820,000.
The property launches at the higher figure. During the first two weeks:
- enquiry is limited
- high-intent buyers move on
- no competing offers emerge
After several weeks, the price is adjusted to align with the market.
At this point, the seller hasn’t “lost” $30,000 on paper — but they may have lost:
- early buyer competition
- urgency in negotiations
- the ability to push buyers upward
In practical terms, this often shows up as:
- fewer offers
- stronger buyer conditions
- less flexibility to hold firm on price
“What changes isn’t the value of the property — it’s the seller’s leverage.”
Even a modest shift in negotiating strength — for example, 3–5% — can translate into tens of thousands of dollars on a major asset, particularly when buyers sense reduced competition.
“Conditioning doesn’t usually reduce value directly.
It reduces the seller’s ability to defend it.”
The “Stale Listing” Effect
As days on market accumulate, buyer perception can change. Rather than asking “What do I need to pay to secure this property?”, attention often shifts to “Why hasn’t it sold?”.
This change in framing can weaken negotiating leverage and place sellers in a more reactive position.
“Time on market doesn’t just measure exposure — it reshapes how buyers interpret value.”
Auctions as a Market Reset
In some situations, auctions are introduced after a period of limited interest. While auctions can be effective when used strategically, they are sometimes employed as a way to demonstrate market resistance more clearly.
On auction day, buyer behaviour provides immediate feedback. While this can help reset expectations, it may also confirm that the property was initially positioned above what buyers were prepared to pay.
“Auctions can clarify market value quickly — but they can’t restore lost momentum.”
Industry Scrutiny and Public Awareness
Concerns around over-quoting and expectation management are not new. In March 2023, an ABC Four Corners investigation examined pricing practices within the real estate industry, including how optimistic appraisals can misalign seller expectations.
The segment discussing over-quoting and conditioning appears from approximately 28 minutes and 20 seconds into the program.
External reference
ABC Four Corners investigation into real estate pricing practices and listing tactics:
https://www.abc.net.au/news/2023-03-27/real-estate-agents-reveal-secret-tactics-of-industry-/102133830
Frequently Asked Questions About Property Appraisals and Listing Strategy
Why do some property appraisals seem higher than the market evidence?
In some cases, an optimistic appraisal can be used as a way of securing a listing rather than reflecting likely sale outcomes. This approach is often referred to as “buying the listing” and relies on a natural tendency for sellers to favour the most positive scenario.
The risk is not the higher figure itself, but what can follow if early buyer interest does not materialise. When a property launches above buyer expectations, competition can disappear quickly, making it harder to defend price later in the campaign.
What does “conditioning” mean in real estate?
Conditioning refers to the gradual adjustment of a seller’s expectations after a property has been positioned above what buyers are prepared to pay. It typically occurs over time and is framed around buyer feedback, enquiry levels, and comparable sales.
Rather than a single conversation, conditioning is a sequence of small recalibrations that often begins after early momentum has already passed.
Why is the first 14 days of a property campaign so important?
Buyer interest usually peaks early, particularly in the first two weeks after a property appears on major real estate portals. This period is often referred to as the “golden window” because competition and urgency are at their highest.
If a property is overpriced at launch, many high-intent buyers move on quickly, and the opportunity to create competitive pressure can be lost.
Can an overpriced listing recover later in the campaign?
A property can still sell after a price adjustment, but the dynamics often change. With fewer competing buyers, negotiations tend to become more conditional, and sellers may have less leverage than they did at the start of the campaign.
What is usually lost is not value itself, but the ability to defend it through competition.
What’s the difference between an appraisal and a valuation in Australia?
In Australia, an appraisal is a real estate agent’s opinion of likely sale price, based on current market conditions and buyer behaviour. A valuation is a formal assessment completed by a qualified valuer, typically for lending, legal, or taxation purposes.
They serve different purposes and are used in different contexts.
Final Thoughts
Not every agent uses optimistic pricing to secure listings, and not every campaign follows the same path. However, understanding how appraisal figures influence timing, buyer behaviour, and expectations allows sellers to better evaluate the advice they receive before committing to a strategy.
It’s also worth remembering a simple principle that applies across many decisions: if a price sounds too good to be true, it often is. In property, unusually high appraisals are rarely free — they are often paid for later through lost momentum, reduced competition, or more difficult negotiations.
“The market ultimately determines value — appraisal figures only influence how the journey unfolds.”
Being informed at the listing stage can make a meaningful difference to the final outcome.
Disclaimer
This article is provided for general informational purposes only. It discusses common pricing and listing practices observed in the Australian residential property market and is not intended as legal, financial, or valuation advice. Individual circumstances vary, and sellers should consider their own situation and seek appropriate professional guidance before making property-related decisions.
