While standing in line for coffee recently, I overheard a conversation that stopped me in my tracks: Someone casually remarked that real estate agents are the ones who set home prices. I didn’t chime in – I’m not in the habit of interrupting strangers – but that one comment echoed a common misunderstanding about how homes are priced, and it’s worth clarifying.
Here’s the truth: Real estate agents don’t set prices – sellers do. What a skilled agent does bring to the table is expertise, data and strategy. When we sit down with a seller to discuss pricing, we’re not pulling numbers out of thin air. We arrive prepared with recent sales, current competition and the dynamics of supply and demand in the area. We analyze how similar homes have performed, what buyers are currently seeing on the market and where the property fits in the pricing landscape.
You see, a home must be sold three times to actually get to closing: first to other agents who decide whether it’s worth showing, then to a buyer who writes an offer and finally to an appraiser who must support the contract value. That last one is often the most rigid – appraisers don’t care how many Pinterest saves your kitchen remodel has. They rely on cold, hard facts. So, our job is to guide sellers in developing a pricing strategy that acknowledges the real market while still meeting their goals.
Sometimes, though, sellers fall in love with a number – often one based on emotion, outdated data or a neighbor’s inflated claim. We call that “aspirational pricing.” It might sound nice, but it rarely works. And, yes, some agents will take those listings anyway, even when the price is wildly out of step with the market. I don’t. If a seller won’t consider data or reason, I’ll decline the listing. It’s not about being difficult; it’s about professional integrity.
Because the reality is this: Marketing a home that’s priced too high is a waste of everyone’s time, energy and money. Buyers are smart – they’re researching online, comparing photos, square footage, upgrades and location. If a home looks great but sits unsold, it’s almost always the price.
So, no, agents don’t set prices. Sellers do. But good agents offer guidance, insights and sometimes the tough love it takes to get a home sold. If you’re a homeowner planning to list, the smartest move you can make is to trust your agent’s pricing strategy – not because we want a quick sale, but because we want you to have a successful one.
Theresa Grant is a real estate broker and columnist covering Lake Arrowhead, Crestline, Running Springs and the surrounding mountain communities. Reach her at (909) 442-1345, visit www.HomesInLakeArrowhead.com and follow her on social media, @theresagrantrealtor. Theresa is a Broker Associate with REAL Broker Technologies. DRE#01202881.
0 Comments