I recently read a blog about how to respond when someone asks you who set the price.  It was presented in a manner that the person asking this questions was getting a feel for the sellers and if the price was firm or soft.

It made me think a little more about the question and how I approach listings.  Do I set the price or do the sellers?  My answer to that is always the sellers.  This has been a topic of debate many times in my office.  Some agents take the approach that, "I'm the expert, so of course I set the price".  The problem is that one you set the price, you have taken ownership of that price.  and guess what happen if the home doesn't sell at the price you've determined?  That's right; you become public enemy number one and your credibility is shot. 

In this volatile market, it's important to remember that, while we are the experts and should have a better handle on the market than most sellers, even we experts can be off the mark from time to time.  That's why we need to take the approach of providing information and suggestions.  We show them the data, we give them our opinion, and then we let them decide.  Then they have taken ownership and if/when it comes time to ask for that price reduction, it's easier to say, "We've tried it at your price (ownership) and we haven't sold.  It's time for a price change (not reduction; there's power in wording as well)".