One of the most common challenges agents face is working with sellers who insist on listing their property well above market value—sometimes by $70,000–$100,000 or more. While it’s natural for homeowners to want top dollar, an overpriced listing can waste valuable time, damage your reputation, and ultimately leave the seller frustrated when the property doesn’t sell.
Here’s how to handle the situation professionally, while protecting your client relationship and your own business.
Use Data, Not Opinion
Prepare a Comparative Market Analysis (CMA) that shows how their home stacks up against recently sold properties in the area.
Highlight days on market (DOM) for homes that were overpriced compared to those priced correctly.
Show what appraisers and buyers’ lenders will consider when determining value—reminding sellers that a buyer cannot secure financing above appraised value.
Explain Buyer Psychology
Buyers search within price brackets. If a home is priced too high, it may not even appear in their searches.
Overpriced homes often help sell other homes—buyers use them as leverage to show how much better value a competing listing offers.
Many sellers overprice because of:
Emotional attachment (“Our home is worth more to us”).
A need to cover debt, improvements, or equity expectations.
Misconceptions about current market trends.
Tip: Validate their feelings before redirecting. For example:
“I understand you’ve put a lot of love and money into your home. My goal is to help you sell quickly, for the best possible price the market will support.”
Price It Right From the Start: Show how correct pricing attracts more buyers, creates competition, and often results in stronger offers.
Tiered Pricing Strategy: Suggest pricing just below a major search bracket (e.g., $399,900 instead of $405,000) to increase visibility.
Test the Market: If the seller insists, agree to list at their price with a written agreement to adjust after 2–3 weeks if there’s little activity.
Concessions Instead of Price: If they won’t reduce, suggest offering buyer incentives (closing cost credits, rate buy-downs, home warranty) to sweeten the deal.
Set Expectations Early: Put in writing that if the home doesn’t generate activity, a price adjustment will be necessary.
Know When to Walk Away: If a seller is completely unwilling to be realistic, it may be best to decline the listing rather than risk months of wasted time and potential reputational harm with other agents.
Document Conversations: Keep records of your CMA presentations, recommendations, and seller responses for your own protection.
Stay calm, patient, and empathetic, even if the client is frustrated.
Focus on being a trusted advisor, not just a salesperson.
Remind them: “The market sets the price, not us.”