Subject: 2 Years, 75%+ Price Cut, Same Agent: Is This Professional?

Question

Here's a scenario I would like the forum to analyze:
A property has been on the market for 24+ months. The original price was clearly set by an agent who convinced the seller their property was worth far more than the market dictated.

The result? The price has been slashed, and the current list price is under 75% of the initial, inflated number. The same agent is still holding the listing, proving the original advice was deeply flawed.

A listing that sits for two years with a major price correction carries a stigma that often hurts the final sale price more than a quick, accurate initial price ever would.

This example is a powerful reminder that many realtors are disconnected from accurate market values and prioritize winning the listing over serving the seller's best interest.

What is the logical next step for this seller, and what responsibility should the initial agent bear for the wasted time and lost equity?

Greg Scott · Answer

Why do you assume the price was set by the agent?  The agent may have advised them the price was way to high but the owner insisted on listing it there.

Courtney Amaya · Answer

What I see most often:

Seller- can we get $x? (over true market value)

Agent: "we can try' * adjusts comps to show more data closely matching sellers preferred listing price. Puts listing in MLS, sign in yard and crosses fingers.

Agent: Open House! Video on Socials!

Market: crickets

Sellers: Why aren't we selling

Agent: Deep breath. Has the conversation that they should've had from the very start.

Not an attorney here, but I'd think to claim the agent alone chose the price, you'll want records of all comps they pulled for you, any written recommendations they made, etc. But look at your listing agreement contract closely. Did both parties agree to a price, or did one party grant authority over pricing to another?

This would be hard to prove.

Interview Realtors & Choose wisely friends!

Rick Albert · Answer

1. You don't know that the agent set the price. I can't tell you how many times I've had Sellers want to list higher than recommended.

2. With that said, I've seen and listed properties higher than I thought the market would accept and still got the price or higher. For example I had a Seller who wanted to list her home $100,000 higher than what I recommended and what the comps showed. I ended up getting her that price plus another $25,000.

3. There is no recourse on the agent for "wasting time." I could argue the Seller should have pushed the agent to lower the price earlier on. It's on the Seller just as much as the agent.

4. If the Seller feels like the agent didn't perform to the level they expected, then cancel the agreement and list with another agent.

5. I would also want to know all the marketing efforts the agent did. Open houses? Professional photography? Easy access for showings? Provided honest feedback?

6. No equity was lost. You don't know and you can't define the number.

It sounds like this Seller is very close to you but selling a property is actually a partnership between the Seller and the agent. Both need to make efforts to get the property sold. Both bear responsibility.

Nick C. · Answer

Sounds like you have a problem with RE agents and came here to bash them?

But you're making way too many assumptions about the situation.

As others have stated above, the seller could be the problem, and the agent is desperate enough to keep an overpriced listing active for 2 years. If that's the case what responsibility does the seller have for wasting the agent's time?

Steve K. · Answer

I'd be shocked if the agent recommended the high price. It's always the seller who is too optimistic with their listing price. The seller probably looked at the Zestimate or the Redfin estimate or something silly like that, without realizing the the algos don't go inside houses to know how they compare, and aren't accurate. Even if the listing agent recommended the high price, they would have realized quickly that they were wrong by the number of showings and would have recommended a big price drop to the right price quickly, or they would have been fired by now. Listing agents don't "set" the price. They show the seller the comps and make a recommendation but the seller is the boss and sets the price. The fact that you saw this listing and thought "the agent messed up" just shows your inexperience. This is a greedy seller 100%. The poor agent is probably out of pocket thousands on marketing costs, and has probably spent 100's of hours of their time on this listing without being paid a single penny. Why would the agent recommend a high price? They don't benefit from that at all. They want to get it sold and get paid.

Ken M. · Answer

.You can get a general idea of what a property is worth, by looking at Redfin.com SOLDS, that sold in the last 90 days, that are the same square feet plus or minus 10%, that have the same number of baths and bedrooms, that were built within 10 years of one another, same condition, same style of house, not across a major highway, a river, a railroad track, etc, or to can spend $500 and have an appraiser do that for you.But, it isn't like buying a candy bar. There isn't a set price. It's an appraiser's OPINION on that house, on that date. The market constantly moves at this time and in the markets I buy in, (right now pretty much Arizona exclusively) I buy at least at 85% or lower than what the "market" says it's worth, or I don't buy. I assume the market is declining where I buy. But, everybody has their own criteria.

Your question "what responsibility should the initial agent bear for the wasted time and lost equity?"None. The seller was at fault by letting it go more than 3 months.

Subject: 2 Years, 75%+ Price Cut, Same Agent: Is This Professional?

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