The answer to that is surprisingly simple. Pull up recent comps, create a flexible plan, and ensure clear communication with sellers.
Pricing in today’s real estate market presents new challenges. Inventory is rising, listings are staying on the market longer, and overpricing remains a common issue. Many agents are hesitant to have direct conversations with sellers about realistic market conditions. However, clear guidance is exactly what clients need. Here are three key principles that can help you advise your clients more effectively:
1. Know recent comparable sales data. Accurate pricing starts with knowing the most recent comparable sales. Do not rely on data from a year ago. Instead, focus on sales within the last one to four months. Look for true comparables, but don’t just compare two-story homes to ramblers, and avoid mismatching different property types. For multifamily properties, remember that value is driven by rental income, not the physical structure. If the property is priced too high, resulting in negative cash flow, it’s unlikely to attract serious investors. Understanding this helps set realistic expectations.
“Clear, honest pricing conversations lead to faster sales and happier clients.”
2. Plan ahead for needed adjustments. The market is changing, and pricing needs to be adaptable. Have a strategy in place with your clients for making adjustments as necessary. This might be based on showing feedback, competition in the neighborhood, or shifts in market activity. Set clear timelines and checkpoints for when you will re-evaluate the price. Having this discussion up front ensures your clients are prepared and avoids surprises later. A structured plan builds trust and demonstrates your market expertise.
3. Be honest, not hesitant. It can be uncomfortable to tell sellers that their pricing expectations are unrealistic. Some agents avoid the conversation altogether, only to see the listing sit for 90, 120, or even 150 days. By then, the seller may become frustrated and cancel the listing. That outcome is far worse than having an honest conversation from the beginning. Speak plainly, present the facts, and be willing to role-play or get help from your broker or peers if needed. Your responsibility is to guide, inform, and protect your client’s interests, not to avoid difficult conversations.
In a market with growing inventory and pricing sensitivity, your leadership is critical. Help your clients develop a strategy that reflects today’s realities. A property that is overpriced and fails to sell wastes your client’s time, energy, and money. With the right advice, you can deliver real value, reduce time on market, and increase client satisfaction and referrals.
If you need help preparing for these conversations or want to role-play specific scenarios, do not hesitate to reach out. You can call me at 801-285-0521 or send me an email at Justin@JustinUdy.com. I look forward to hearing from you!
