Ever walked away from an auction feeling gutted? Maybe you thought you had a real shot, only to watch the price shoot past your budget. Or maybe you’re just starting out and want to avoid that kind of letdown altogether.
This is the most important step you can take before you even think about hitting another open home or auction: do a quick reality check.
It’s something I do with every client before we start looking — and it can save you months of wasted time.
Why so many buyers stay stuck
On average, people in Melbourne spend six to twelve months searching for a property. That’s far too long.
Most of the time, it comes down to one issue — their expectations and their budget don’t match. Buyers get stuck chasing properties that aren’t actually within reach, and they don’t realise it until they’ve missed out a few times.
There are really only two big pieces in any property purchase: your budget, and the kind of property you’re after. If those two aren’t in sync, the search gets painful, fast.
A common mistake I see is when buyers say something like, “The agent’s quoting $1 to $1.1 million, and our budget is $1.1, so we’re in with a shot.”
But in Melbourne, it’s common for homes to sell well above the top of the quoted range. That $1.1 million house might go for $1.2 or even higher. So from the start, they were chasing something that was never really in their price bracket.
Then the cycle begins — weekends at inspections, bidding at auctions, paying for pest inspections and contract reviews, all for nothing.
How to check if your brief is realistic
This is a quick exercise I recommend for anyone buying, whether you’re just starting or have already been looking for a while.
Jump on realestate.com.au or Domain.
Choose the suburb you’re keen on and set your filters for the type of property you want — for example, a four-bed, two-bath home.
Make sure you’re only looking at sold listings from the last three months.
Ask yourself: Would I have bought any of these homes at the price they sold for?
If the answer is no — because the homes weren’t quite right, or they all sold above your budget — then that’s your signal something needs to change.
What to do if nothing fits
If you can’t find anything that ticks the boxes in your price range, you’ve got a few options:
Look at nearby suburbs that might be more affordable
Adjust your brief — maybe it’s three bedrooms instead of four, or drop that second bathroom
Reassess your budget (if that’s even an option)
Plenty of buyers fall into the trap of chasing a “unicorn” property — the one that’s just a bit too good for the price they can afford. The problem is, they think it’s possible because the quote range says so. But quoting is a marketing tool, not a valuation. That unicorn probably doesn’t exist, and if it does, it’ll get snapped up before you get close.
Another mistake is valuing a property based on what you want to pay, rather than what it’s actually worth in the current market. That kind of thinking leads to disappointment.
Why sold properties are the only real guide
It’s tempting to browse current listings and think, “This place is listed at $1.05, we could make that work.” But that’s not a real number. It’s a lure.
The only way to know what properties are truly selling for is to look at sold listings. That’s where the truth is. If you’re basing your expectations on current listings, you’re not working with the full picture.
Give yourself a better starting point
Whether you’re just starting out or you’ve been at this for months, doing this audit gives you a clear sense of whether what you want lines up with what you can afford. If it doesn’t, better to know now than waste more time looking for something that doesn’t exist.
It might feel a bit deflating at first, but once you adjust your brief to match the market, the whole process gets easier. You’ll stop chasing the wrong properties and start seeing options that are actually within reach.
Not sure if your brief is realistic?
Feel free to get in touch — I’m always happy to help buyers figure out where they stand and how to move forward.
Enjoyed this post?
It’s based on an episode of Own It — my podcast covering everything you need to know when it comes to buying a home. From knowing where to start, all the way through to tough auction negotiations, we cover the whole journey.
Click one of the links to listen to Own It on your favourite platform.
