Why Top Agents Rely on Property Data, Not Guesswork, to Price Listings Accurately

Disclaimer: PropStream does not offer investment or legal advice. This article is for informational purposes only. Consult a financial and/or legal professional before recommending real estate deals to investors.

As an agent, you often need to rely on your gut instinct, but it’s not a good idea when pricing properties. Basing a list price on feelings, what other agents are saying, or even your own experience in a particular market can result in expired listings, cause sellers to miss out on profit, or even damage your reputation as an agent.

In this article, we explore why property data, not guesswork, should drive agents’ pricing decisions and how to go about it.

Why Pricing Accuracy Is So Critical

There’s a reason that setting a competitive list price is one of the top three reasons sellers hire real estate agents, making it a key skill to cultivate. Pricing a property incorrectly—whether it’s overpricing or underpricing—can be a costly mistake.

Overpricing often leaves homes on the market longer than usual, causing buyers to wonder what’s wrong with the property. In extreme cases, it can force price reductions, further damaging buyers’ perception of the home and attracting lowballers.

Underpricing is equally problematic. Not only do sellers leave money on the table, but they may also lose trust in you as a result.

Why Guesswork and Emotion Aren’t Reliable for Pricing

With today’s technology, sellers have a plethora of real estate information at their fingertips. This means they tend to be more informed about the selling process and expect agents to justify their pricing recommendations with facts, not opinions.

Relying on guesswork, emotion, or sellers’ expectations alone can skew an agent’s analytical process, leading to pricing problems. Outdated comps, even just by a few weeks, can also be misleading.

Accurate pricing also requires taking into account several market factors, such as:

• Buyer demand
• Interest rates
• Inventory levels

For example, as inventory rose and the market cooled in 2025, nearly 40% of sellers had to reduce their listing prices at least once. As a result, more sellers are realizing that the outrageous bidding wars of the early pandemic are over—highlighting the need for more tempered, competitive real estate pricing strategies.

Build Seller Confidence With Accurate Comps

The real estate comps you use can make or break your comparative market analysis (CMA). When looking for relevant comps, pay close attention to:

• Location: The nearer to your listing, the better, ideally within a block or two
• Size: A comp’s square footage should ideally be within 10% of the listing’s (e.g., for a 2,000-square-foot home, look for properties between 1,800 and 2,200 square feet.)
  
• Condition: Look at curb appeal, appliances, outdoor spaces, flooring, and overall structure

• Recency: Identify sales within the last three to six months—or up to a year in slower-moving markets

Comps backed by accurate, thorough property data make it easier to explain your pricing logic to clients. Most sellers appreciate this transparency, allowing agents to build trust during listing presentations. 

For example, with PropStream, agents can run detailed, up-to-date comps in minutes. You can use our comp tool’s default search settings or fine-tune them to match your exact needs.

Use Property Data to Balance Seller Expectations and Market Reality

It’s not uncommon to encounter sellers with unrealistic financial goals or aggressive selling timelines. Instead of sharing your opinion, use the research you gathered during the step above to guide these difficult conversations.

Let’s say a seller client wants to sell their home for $500,000, but you know $450,000 is a stronger asking price. This is an opportunity to use your comps and recent buyer demand trends to showcase why $450,000 is a better choice.

You could even run through various price-point scenarios, explaining how the $450,000 price would quickly ignite buyer attention while still maximizing the seller’s profits. Sharing facts and realistic outcomes helps the client feel informed rather than pressured.

Add Market Context to Pricing Decisions

Accurate pricing is about much more than recent sales. Consider analyzing local market data to fine-tune your number.

• Current inventory levels: Did a new apartment building go up a few blocks from the neighborhood? A sudden spike in inventory can temporarily push down prices, while scarcity may send them soaring.

• Days on market trends: Days on market (DOM) show how quickly properties are selling. The higher the number, the more critical it is to price competitively.

• Buyer demand in the neighborhood: DOM and sale-to-list price ratio trends can give you an idea of how eager buyers are in your area. When the DOM is low, and sale-to-list prices are high (over 100%), sellers have more wiggle room to raise their asking price.

Researching Days on Market and market trends in PropStream, along with its 20 built-in lead lists, helps agents identify pricing patterns and set more accurate list prices.

Win More Listings With Reliable Data

Ultimately, sellers trust agents who price their homes competitively, not optimistically. Agents who lead with data not only stand out in listing appointments and reduce pricing objections but also build a reputation over time as proven strategists.

Let PropStream enhance your listing presentations with accurate comps and insightful market trends that instill confidence in your clients and strengthen your reputation as an expert.

*PropStream engages an independent third party to perform skip-tracing.