You see the listing. $750,000. You feel a flicker of hope. Maybe this time. Maybe this one. Then it sells for $951,000.
Welcome to the “Mirage Economy”, where price guides are bait, auctions are a blood sport, and disappointment is all too common.
Why lowball price tags hurt more than your wallet
It’s not just about money. It’s about high pressure tactics and emotional manipulation.
Low price guides create false hope. They lure you in, get you invested, and then yank the rug out from under you. You’re not just losing a property. You’re losing time, energy, and belief in your own financial reality.
And if you’re buying solo? You’re often up against couples with dual incomes, buyers’ agents with insider access, and vendors who want speed over fairness.
It’s not a level playing field. It’s a psychological obstacle course.
The Mirage Economy: real stories from the trenches
Linda Fellows, a 55-year-old Sydney office manager, shared her experience navigating the market after a $750,000 apartment sold for $951,000 right in front of her. She’s blunt about it: buyers need to mentally add at least $100,000 to any listed price guide just to stay in a realistic headspace.
Determined to avoid another auction, she targeted a different $750,000 apartment in Alexandria and offered $800,000 before auction day. When a bidding war pushed things to $900,000, she secured it at $910,000 with an unusually short 7-day settlement. The vendor took her offer over higher bids because the certainty was worth more than a few extra thousand dollars.
That’s the game. And once you understand how it works, you can play it differently.
What’s actually changing on underquoting right now
It’s worth knowing that regulators are starting to take this more seriously.
Victoria is introducing laws in 2026 that require auction reserve prices to be published at least a week before auction day. Auctions can’t proceed if the reserve hasn’t been disclosed in time, and agents must update all marketing materials once it is. It’s one of the most meaningful transparency reforms the state has made.
In NSW, proposed reforms would see agents fined up to $110,000 or three times their commission, whichever is greater, for underquoting. That’s up from the current maximum of $22,000 and signals that the days of consequence-free lowballing may finally be numbered.
These changes won’t fix everything overnight. But knowing your rights in your state matters.
How to see through the mirage
Add $100K to every price guide. In markets like Sydney, underquoting is rampant. Treat the guide as a teaser, not a truth. Going in with realistic expectations protects your time and your heart.
Ask the agent directly. Agents are legally required to provide an estimated selling price range in most states. Ask them straight: “What price would actually secure this today?” If they dodge the question, that’s a red flag. If they give you a number, ask for it in writing. Hold them to it if the campaign shifts dramatically without reason.
Do your own research. The real estate agent works for the seller, not for you. Compare recent sales in the area using Domain or realestate.com.au and ground yourself in actual data before you get emotionally attached to anything.
Know your ceiling and stick to it. Emotional bidding is real and expensive. Set your absolute maximum, including buffers for rate changes and unexpected costs, before you fall in love with the layout. Write it down. Tell someone. Then hold the line.
Consider fast settlement as leverage. A 7-day settlement helped Linda win against higher bidders. It’s not always feasible, but if you’re pre-approved and genuinely ready to move, a faster or more certain settlement can be a real edge when vendors are prioritising certainty over price.
Trust your instincts. If something feels off, an agent dismissing your offer too quickly, goalposts that keep shifting, a campaign that goes strangely quiet, pause. The right property is out there. Protecting your financial wellbeing matters more than winning any single auction.
Don’t internalise the rejection. You didn’t fail. The system did. Penny’s here to remind you: your worth isn’t defined by what you can outbid.
What we’re hearing
“I felt like I was being gaslit by the market. Every price guide was a lie. I started to question if I was just bad with money. Turns out, I was just playing a rigged game.”
In a market that sells scarcity as strategy, Penny offers clarity as resistance. We don’t just help you buy. We help you see.
Because sometimes the most powerful thing you can do is name the game, and choose how you play it.
Additional reading: ‘Biggest liar gets the listing’: The tricks some real estate agents use to pressure home sellers, The Age ‘Oh my god’: Sydney woman’s 7-day trick to buy a Sydney apartment, News.com.au
Sources: Savings.com.au, Victoria underquoting reserve price laws 2026. NSW Government proposed underquoting fine reforms 2025 to 2026.
This post is general information only and not financial or legal advice. Property regulations vary by state. Please speak with a licensed buyer’s agent, mortgage broker or conveyancer before making any property decisions.