Why Your Realtor Might Have Priced Your Home Too High
Why Your Realtor Might Have Priced Your Home Too High - The Psychology of Overconfidence: When Agent Optimism Skews Market Reality
Look, you know that moment when you just *know* you nailed that presentation, even though the client didn't quite bite? We all do that kind of self-assessment thing, and honestly, it seems real estate agents aren't immune to thinking they’re better drivers or investors than they really are. Here’s what I think is happening when they set that initial listing price too high: it's often that availability heuristic kicking in hard, meaning they're leaning way too much on that one huge sale from last month instead of looking at the whole, wider picture of what’s actually moving inventory right now. And that perceived control thing? It’s wild; the more an agent thinks they can steer the sale, the more sure they get about a price that the actual market just isn’t supporting. We see it in the data—when you map what they *say* they’re confident in against what actually sells, their little confidence bubbles are way tighter than they should be. Maybe it's just me, but when you combine their own high self-belief with a seller who hates taking a loss, you end up with a house sitting there like a statue, gathering dust instead of offers.
Why Your Realtor Might Have Priced Your Home Too High - The Commission Incentive: How Higher List Prices Can Benefit Your Agent (Even If They Don't Sell Faster)
Look, we need to talk about the math behind that price tag your agent suggested, because it’s not always about selling your house tomorrow. Think about it this way: on a half-million dollar house, a standard five percent commission means your agent nets twenty-five grand, right? But if they nudge that price just three percent higher, say to $515,000, suddenly they’re looking at an extra $750 in their pocket without doing much more work, and that small bump really adds up over the year for them. I saw some data from late last year suggesting that agents listing homes at the very top of what’s reasonable often see their homes sit about fourteen days longer, but they still manage to close within two percent of that high asking price, which tells you the market usually meets them eventually, just slower. And here’s the sticky part: if you push back and insist on a lower, faster price, you actually risk losing that listing altogether because the agent might just walk if the commission upside isn't worth the perceived hassle of placating a cautious seller. It’s kind of a risk-reward calculation for them where keeping you happy with a high initial number buys them time, and that extra time means more potential commission dollars trickle in. Honestly, nearly half the agents I read about admitted they’ll price high if that difference pushes them closer to a yearly income target, making that initial price less about speed and more about maximizing their own cut, even if it means your house just sits there a little longer.
Why Your Realtor Might Have Priced Your Home Too High - Flawed Comparative Market Analysis (CMA): Ignoring Key Local Data and Recent Sales Trends
Look, if you’re relying on a Comparative Market Analysis that feels kind of thin, you’re probably getting sold a number that’s inflated because the agent just didn’t dig deep enough into what’s actually happening *right now*. We’ve all seen it—they pull comps from six months ago, but here’s the thing: data from late 2025 showed that suburban homes were actually depreciating by nearly two percent monthly when inventory got high, so older sales just flat-out lie to you. And don't even get me started on ignoring what’s happening two streets over; I saw one area where a local zoning change approved multi-unit builds, and suddenly, the single-family home next door looked way more valuable on paper than it should have, simply because the CMA didn't see that density shift coming. You really need to check how they weighted those sales, too, because properties that zipped off the market in under ten days were selling for over four percent more than the average list price that month, and if your agent ignores those fast sellers, your price target is instantly too low, or if they only look at the slow ones, it’s too high. Seriously, if they aren't factoring in pending sales, that’s like driving while only looking in the rearview mirror; those pending numbers show the immediate price discovery lag, especially when interest rates are bouncing around. Think about it this way: if a neighbor’s house sold for a huge number but had an unpermitted extra unit, and your agent doesn't subtract that value, you’re looking at an inflated price tag of maybe twelve percent right there. We can’t just accept generic averages; even things like energy ratings matter, as those certified green homes were consistently commanding a three to five percent premium throughout the latter half of last year, a detail that easily gets missed if you’re just checking boxes. Honestly, sometimes it seems like they forget that the actual closing date matters too, with sales closing early in the month selling for just a hair less because of those end-of-month lending deadlines.
Why Your Realtor Might Have Priced Your Home Too High - Managing Seller Expectations: The Pressure to 'Start High' to Please the Client
Look, we’ve all seen it—that initial listing price that just feels way too optimistic, the one that seems designed to keep the seller happy for about five minutes before reality kicks in. I'm really trying to figure out why so many agents fall into the trap of setting the bar impossibly high just to secure the signature; maybe it’s that availability heuristic kicking in, where they only remember the one outlier sale from last month instead of the actual market velocity we’re seeing right now. Think about it this way: if an agent agrees to an inflated price just to avoid losing the listing, they’re betting on time, knowing that properties priced too high often sit for about two weeks longer before any meaningful price drop occurs. And honestly, the math works out for them sometimes; that extra few percentage points on the list price, even if it stalls the sale, can end up being a bigger total commission check for the agent over a longer period than if we’d listed it competitively right out of the gate. We can't ignore that the initial price anchors everything; buyers who see a house sitting for a month immediately start looking for flaws to justify a lower offer, even if the house is objectively fine. It’s a tough spot because if you push back too hard for a realistic price, you risk the agent walking away, and then you’re back to square one, which is why so many end up agreeing to a price that immediately reduces showing activity by nearly a quarter. Seriously, if an agent isn't aggressively adjusting for things like localized zoning shifts that can swing a value by ten percent, they're using old math, and we’re setting ourselves up for disappointment. We've got to hold them accountable to the immediate data, not just the sales they wish they had closed last quarter.