One of the vital aspects in the role of a Real Estate agent is to inform your clients of the current economic conditions in your given market and accurately reflect these conditions in your valuation of a home. I find that many realtors, as a result of desperation to secure a listing or pure negligence, list homes above market value in the hopes that a transaction may be closed, appeasing an owner's false sense of home value in a dwindling market. The reality is that many homes simply sit on the market for prolonged periods of time, drawing on both the home owner's and agents resources, as an overpriced home is certainly not going to sell in this market. It is vital, in the course of listing any property, that the home is priced to sell, and not priced for comission gain or to satisfy a client's ego. I find that many agents make this mistake time and time again, resulting in the owner's expectations not being met and the Realtor having to deal with unnecessary stress relative to a home that is simply sitting on the market.
The goal here, for both the listing agent and the seller, is to sell a listing quickly and negotiate a price that reflects the current market value. As any agent that is familiar with the real estate market knows, home prices fluctuate depending on supply and demand, a simple economic principle that covers all aspects of both micro and macro economic systems. Another important aspect of this pricing scenario is the appraisal process. In this market, seller's and buyer's alike will run into a stalemate in a transaction if the home does not appraise for the negotiated price. This is anothe factor that contributes to the importance of pricing a home correctly, as a low appraisal will most surely affect the closing of any transaction. If a buyer cannot secure a loan for the full purchase price of a property, they are most likely to walk. In this scenario, neither party benefits and most notably, the listing price of the property may need to be changed accordingly.
Moreover, upon initial consultation with any seller, it is the responsibility of the agent to give their client an accurate reflection of the current market conditions and a suggested sales price that reflects the market. If a client is unrealistic about their expectations from the sale of their home it is the agent's obligation to dissuade them of these expectations and negotiate for a more realistic sales price for the listing. Agents are not obligated to take any listing and should stray away from sellers with unrealistic expectations and an unwillingness to come to terms with the current climate in the Real Estate Market.