Two Agents Gave You Two Different List Prices in Davis County. How Do You Decide Who Is Right?

Ask each one to show their work. The price is an opinion, but the evidence behind it should be on paper: which sales they used, how they adjusted them and what they expect buyers to do at that price. The better price is the one with the stronger evidence, not the higher number and not the lower one.

Charisse Walker is a real estate agent with Chalker Properties Group in Salt Lake and Davis County, Utah, and a licensed mortgage lender. I have been asked to review another agent's price more than once, and I would rather you compare us on facts than on how good the number feels.

Several reasons are common, and none of them means someone is lying.

• They picked different comparable sales. One agent may use homes from the last three months, another from the last year.
• They adjusted differently for condition, lot, basement finish or garage.
• They are reading the current market differently, such as how fast homes are selling or how much buyers are negotiating.
• One is pricing to win your listing. A high number can be a way to get hired and then reduce later.
• One is pricing to sell quickly. A low number can bring multiple offers but may leave money on the table.

You cannot tell which case you are in from the number alone. You can tell from the reasoning.

Ask for the same things from both, so you are comparing like with like:

1. Three to six comparable sales, sold, not just listed, near your home and similar in size, age and condition.
2. The adjustments. How did they account for a finished basement, an updated kitchen, a larger lot or a smaller garage?
3. Active and pending competition. What will buyers see next to your home on the day it goes live?
4. Days on the market for those comparables. Fast sales and slow sales tell different stories.
5. The plan if there is no activity. When would they suggest a price change, and by how much?
6. Your estimated net. Subtract commission, closing costs and the payoff on your loan so you see what reaches you.

An agent who cannot show you the sales behind the number is giving you a guess.

You can do part of this without an agent. Look at recently sold homes near yours on a public site, and compare square footage, lot size and condition. Notice how far the sold price differs from the list price. Then drive by two or three of the homes that sold, and two or three that are still on the market.

Pay attention to what is still sitting. A home listed higher than recent sales that has been waiting for weeks is telling you where buyers stopped. A home that sold within days probably was priced under or at the market. Both signals are useful.

The first two weeks matter most. A new listing gets the most attention when it first appears, and buyers who are watching the market move quickly. If the price is above what the evidence supports, buyers skip it and then compare it unfavorably to homes that arrive later. A price drop weeks later often gets less response than the same price on day one.

I am not saying always price low. Overpricing and underpricing both cost money. I am saying the price should come from sold homes and current competition, and your agent should be able to explain it in plain words. For more on how pricing works in the county, read how to price your home in Davis County.

• Choosing the agent with the highest number.
• Choosing the agent with the lowest commission without comparing the plan.
• Pricing based on what you need to net rather than what buyers will pay.
• Using an online estimate as the only guide. Those tools miss condition and finishes.
• Ignoring active competition and looking only at sales from months ago.
• Pricing high with the plan to lower it later.

This is a typical example, not a client story. A Davis County owner interviews two agents. One suggests a list price near the top of what the owner hoped. The other suggests a price noticeably lower, and brings six comparable sales with adjustments for the finished basement and the lot. The owner asks the first agent for the same list. The first agent has only two sales and says buyers will pay more for the view. The owner picks a price closer to the second agent's number, adds a plan for a review after two weeks and gets showings in the first weekend.

The point is not that the lower number is always right. The evidence decided.

If you are down to two agents, schedule a second conversation with each and ask the same questions. Here are some that separate a plan from a pitch.

Ask: what is the first thing you would do the week we list? How do you decide when to adjust the price? What happened the last time a home you listed was priced above the sales? What do buyers in this price range in my part of Davis County care about? How will you reach buyers who are not already watching the market?

Listen for specifics. A strong answer names the steps, the timing and the numbers. A weak answer repeats general promises. If one agent is willing to say what might go wrong, that is usually a good sign. A person who only tells you what you want to hear is selling the listing, not the home.

Your price is not what you take home. Start with the sale price and subtract your loan payoff, agent commissions as agreed, title and escrow fees, any repairs or credits, prorated taxes and other closing costs. The result is your estimated net.

Ask each agent for a net sheet at two or three prices. You may find that a lower price with a faster, cleaner sale nets close to a higher price that sits for months and ends in a reduction. You may also find that the higher price is right. You cannot know until you see the numbers laid out.

If you are selling because of a life change, such as a move, a divorce or an inherited home, time has a cost too. Carrying costs like the mortgage, utilities and insurance continue each month. Include them in your comparison. That is part of protecting your net.

Ask for a trial of the plan, not the price. Many sellers settle by agreeing to a price review date in writing, such as two weeks after the home goes live, with a clear rule for what happens if showings are low. That protects you if the first number was wrong in either direction.

You can also pay for an independent appraisal if the gap is large and the stakes are high. It costs money, but an appraiser has no stake in your listing. For sellers in the middle of a divorce, estate or relocation, a neutral number can end an argument between owners.

Last, trust your read of the person. You will make many decisions with this agent over the next weeks. Pick the one who explains clearly, answers your questions without defensiveness and shows you the numbers behind each recommendation.

Is a broker price opinion the same as an appraisal?
No. An appraisal is done by a licensed appraiser for a lender. A price opinion is an agent's estimate for listing.

Should I pay for an appraisal before listing?
Some sellers do, mostly when the home is unusual or the owners disagree on value, such as in a divorce or an estate.

Can I change the list price after I list?
Yes. Your listing agreement allows price changes. Agree on the review date when you sign.

How long should I wait before reducing the price?
It depends on activity. Many sellers review after the first couple of weeks, using showings and feedback.

Does the agent's commission affect the price?
Commission is negotiable and agreed in writing. It should not change what the evidence says about value.

Charisse Walker is a real estate agent with Chalker Properties Group in Salt Lake and Davis County, Utah, and a licensed mortgage lender. If you already have one price opinion and want a second, I will show you the sales, the adjustments and your estimated net, and you can compare it side by side. Read our home valuation page, see the Kaysville or Farmington area pages, or contact Charisse.