From Josh Bartlett, Mortgage Broker and Director at Mynt Financial.
When you’re house-hunting, one of the biggest challenges is figuring out what a property is actually worth, not just what it’s listed for. We’ve all seen homes that sell well above expectations, but generally speaking, most properties go for what’s known as fair market value.
As a mortgage broker in Melbourne, I’m often asked:
“How do I know if I’m paying too much?”
It’s a smart question – and one of the most important to get right, especially for first home buyers.
Here’s how you can work out a realistic price range and avoid overpaying.
Understand What ‘Market Value’ Really Means
Market value is the price a property would likely sell for today, based on recent comparable sales and buyer demand. It’s not a fixed number – and in Melbourne’s competitive market, emotional bidding can throw things off.
Sellers want this number high. Buyers? You want it low. Somewhere in the middle sits the fair price.
Step 1: Do Your Own Research
If you’re applying for a first home buyer loan or even a home loan for investment, it’s worth comparing similar homes:
✔ Same number of bedrooms/bathrooms
✔ Similar style and condition
✔ Same school zone or suburb
✔ Comparable land size and build quality
Sites like realestate.com.au, Domain, and recent sold property reports can help. Keep notes or a spreadsheet – after a few open homes, trends become clear.
If you’re working with a first home buyer mortgage broker, they can help make sense of what you’re seeing in the data.
🛠️Buying Off the Plan? Still Do Your Homework
Just because a property is new doesn’t mean it’s good value. Whether it’s an apartment or townhouse, compare the asking price to recent sales of similar properties in the same area.
Step 2: Talk to the Right People
It’s fine to get opinions from agents, vendors or other buyers – but remember, everyone has an agenda.
Agents represent the seller. That doesn’t mean their insights aren’t helpful, just that your own research is key.
If you’re unsure, chat with a home loan broker who understands the local market. At Mynt Financial, our brokers often spot things buyers overlook – from under-quoted listings to missed opportunities in nearby suburbs.
Step 3: Consider a Valuation (For Serious Buyers)
If you’re serious about a property and unsure about the asking price, you can order a professional property valuation. It’s not something most buyers do for every home (costs around a few hundred dollars), but it can provide peace of mind.
Just know this isn’t the same as a lender valuation for your home loan – which your mortgage broker can explain in more detail.
📄 Bonus: Get a Free Property Report
At Mynt Financial, we provide free suburb property reports to help you make informed decisions. These include:
Price predictions
Comparable sales
Suburb insights
Sales and rental history
This is especially useful for first home buyers in Melbourne trying to narrow down a location or set a realistic budget.
✅ The Wrap-Up
Knowing what a property is worth is key – particularly if you’re applying for a first home loan or preparing to refinance.
Do your research, compare recent sales, and don’t hesitate to ask for expert guidance. If you’d like a borrowing power calculator or free property report, we’d be happy to send one through.
You can also book a free chat with one of our Lending Specialists to talk through your numbers. We’re here to help you feel confident – not overwhelmed – when making an offer.
Disclaimer:
The information provided in this article is general in nature and does not constitute personal financial advice. Individual circumstances vary, and we recommend speaking with a qualified mortgage broker, legal representative, or financial adviser before making any financial decisions. Loan products and policies are subject to change.
