Setting a price higher than market value with the intention of negotiating downwards is a strategy some sellers consider, but its effectiveness varies significantly depending on current market conditions and property specifics.
As of December 2025, in Melbourne’s Eastern Suburbs, this approach is less common than in some other cities. Currently, buyers are highly informed, utilising online portals and recent sales data to assess fair market value. While a slight buffer may attract initial interest, significantly overpricing can deter potential buyers, particularly in a market forecasting moderate growth of 3-6% in 2026. Campaigns typically run for 4-6 weeks, and properties priced too high often experience limited inspection numbers. Buyers in 2026 strongly favour well-presented properties with renovation potential, and are less inclined to engage in lengthy negotiations. Fletchers’ experience shows that a realistic price range, supported by a comprehensive property appraisal, generally generates more genuine interest and competitive bidding. We often see success with a price point that encourages multiple offers, rather than relying on a single negotiation. Marketing costs in the Eastern Suburbs range from $3,000 to $8,000, and a property sitting on the market for an extended period due to overpricing can diminish the return on this investment.
Ultimately, a well-considered pricing strategy, aligned with current market dynamics and informed by local expertise, is generally more effective than attempting to negotiate down from an inflated price.