Every day, I scan the MLS® System looking for the best new listings for my buyer clients. While I’m doing that, I can’t help but notice the properties that just sit there… day after day… week after week… without selling.

There’s a simple reason for that.

They’re overpriced.

That’s it. That’s all.

The market is remarkably efficient. If a property doesn’t sell within a reasonable time, it’s because buyers don’t believe it’s worth the asking price. The market is sending a message, and smart sellers listen and respond quickly.

Sometimes I’ll see a brand-new listing and literally laugh out loud because the asking price is so unrealistic. Seeing homes listed 10% to 20% above market value is far more common than you’d think.

Almost every one of those listings follows the same painful path: price reduction after price reduction after price reduction. Eventually, they sell—but almost always for significantly less than they could have achieved had they been priced properly from the start.

Here’s a simple example.

Let’s say a home is worth $500,000. If you list it close to market value, chances are it’ll sell quickly for something close to asking—let’s say $495,000.

Now let’s say you list that same home for $550,000.

It sits for months. Showings slow to a trickle. Buyers ignore it. Eventually, after several price reductions, you finally get down to $500,000—where it should have been in the first place.

But now it still doesn’t sell.

Why?

Because the listing has become stigmatized. Buyers assume there’s something wrong with it, or they wonder why nobody else wanted it. Instead of generating excitement, it generates suspicion.

So you cut the price again… and again… until it finally sells for $465,000.

Not only did you endure months of frustration, but you also ended up with tens of thousands of dollars less than if you’d priced it correctly on Day One.

Sometimes overpriced listings don’t sell at all. I’ve watched homes expire, get relisted, expire again, and repeat that cycle for years because the sellers refused to accept what the market was telling them.

To be clear, I don’t believe most listing agents intentionally overprice homes. Pricing accurately is one of the hardest skills in real estate. It takes years of experience, a deep understanding of market psychology, and the discipline to rely on evidence instead of optimism.

Unfortunately, not every agent has developed those skills.

Now let’s talk about the rare exception.

Once in a blue moon, I’ll see a listing that’s priced so high I think, “There’s absolutely no way that’s selling.”

Then, a few days later…

SOLD.

Do you know what I do every single time that happens?

I immediately look up the buyer’s agent. More often than not, the listing agent represented both the seller and the buyer.

That genuinely makes me feel sorry for the buyers.

Why?

Because, in my experience, many buyers who approach the listing agent directly make two costly assumptions.

First, they assume that because a property is listed at a certain price, it must be worth that amount.

Nothing could be further from the truth.

The asking price is simply that—an asking price. It isn’t an appraisal, and it certainly isn’t proof of market value. Pricing mistakes happen every day.

Second, they believe they’ll get a better deal by working directly with the listing agent.

Again, the opposite is usually true.

The listing agent has a legal and fiduciary duty to obtain the best possible price and terms for the seller. That’s exactly what they were hired to do. Expecting that same person to negotiate the lowest possible price for you creates an obvious conflict of interest. Buyers who believe they’ve “saved money” by bypassing their own representation are often mistaken.

What about the situations where another buyer’s agent is involved?

In my experience, when buyers pay substantially more than market value, it’s often because their representative lacked the experience, market knowledge, or confidence to challenge the asking price.

Thankfully, those situations are the exception.

The vast majority of REALTORS® are honest, knowledgeable professionals who work tirelessly to protect their clients’ interests. A great buyer’s agent doesn’t just unlock doors and write offers. They protect you from overpaying, identify pricing mistakes, negotiate aggressively on your behalf, and help you make one of the biggest financial decisions of your life with confidence.

Whether you’re buying or selling, the lesson is the same.

If you’re buying, always have your own experienced representation. The listing agent already has a client. Make sure you have someone whose only job is to protect your interests.

If you’re selling, price your home correctly from the very beginning. Chasing an unrealistic number almost never works. More often than not, it leads to months of unnecessary stress… and a final sale price that’s lower than what you could have achieved by pricing it right on Day One.