Pricing conversations aren’t about convincing the seller you’re right, writes coach Darryl Davis. It’s about guiding them so they can make the best decisions for themselves.
This is the question that reveals everything about how the agent approaches pricing. When you sit down with a seller and open a CMA, are you there to sell them a number or are you there to guide them toward a decision?
If the answer is the first, you have already lost. Not necessarily a list. By telling the seller exactly what you want to ask, you may be able to win the listing. But you are missing something more important. It’s an opportunity to build the kind of trust that will lead to smooth transactions, realistic timelines, and clients who will refer you for the next 20 years.
Start with the right mindset
Before you can get a single comp, you need to get your mindset right. You don’t walk into a living room to sell your price to a homeowner. You join as a coach. Advisor. A consultant whose job is to present the best information available and help homeowners make informed decisions.
This is one of the core principles we teach our agents, and it starts with language. I say to homeowners:
“When it comes to pricing, you decide, because you’re the boss. My responsibility is marketing. But you set the price. My job is to provide you with an expert opinion, along with an educated review based on my years of experience. But in the end, you decide.”
Please read it again. Notice what it does. This removes the adversarial dynamic and positions you as a trusted resource rather than a pushy salesperson. Because homeowners are given the power to make decisions, they are much more likely to trust your guidance and there is less pressure on you.
Method 1: Eye of the appraiser
The first technique we teach is to walk the homeowner through each comparable sale in a fully printed format, as if a bank appraiser were reviewing the file.
This is the setup. You are explaining how financing works from the buyer’s side. When a buyer seeks a mortgage, the bank sends an appraiser. The appraiser’s job is to carefully ensure that the loan is a good investment. The appraiser does not promise to give you the highest price possible. They promise the safest prices. Because if the buyer defaults and the bank has to foreclose, they need to get their money back.
Then you say:
“What I’m going to show you is the exact price that the bank’s appraiser will use when the buyer’s lender requests an appraisal.”
Next, lay out the comps one by one. It’s not a spreadsheet they can’t read. It’s not a one-page summary with all the details. Complete printout – each property including photos, square footage, lot size, condition, days on market, and sales price. Describe each house and point out similarities and differences with your own. Let them absorb the data.
After everything is explained, you ask one powerful question.
“Now, if you were a bank appraiser – conservative, but looking at these numbers – what do you think this house is worth?”
This is the magic of approach. You’re not telling them what the house is worth. We gave them the same data that professional appraisers use and asked them to come up with the numbers themselves. Data doesn’t lie, so 9 times out of 10, the numbers they come up with are realistic. And because they came to their own conclusions, they own it.
Method 2: Competition window
The second technique, which can be used in conjunction with the appraisal method, is to show the homeowner what the competition is like in their desired price range.
The principles are simple and universal. Buyers shop by category. People who buy shoes in the $300 range aren’t looking for $1,000 shoes. People buying $40,000 cars aren’t looking at $100,000 cars. Buyers set a price range and compare everything within that range.
Real estate works in exactly the same way. When sellers choose list price, they are placing their home in a particular competitive category. All buyers searching within that range will see their home alongside all other properties within that bracket.
View active listings in your desired price range and view them side-by-side. Then ask:
“When a buyer sees your home next to these homes in this price range, does your home stand out as the most valuable? Is it the shiny dime in this category, the one that’s worth more?”
If the answer is yes, you are within the correct range. If the answer is no, meaning competitors in that price range have newer kitchens, larger grounds, or better locations, sellers can see for themselves why they need to adjust their prices. There was no need to argue. The market has advocated for you.
Combine both for maximum effect
The most effective CMA presentations use both methods together. Let’s take a quick look at the comps to help homeowners understand where the market says value is. Next, we’ll show you the competition in your price range and see where your home fits among active listings.
One method is to anchor them to sales data. The other shows the reality they face today.
Combining these techniques creates a pricing conversation that feels collaborative rather than confrontational. Home owners feel no pressure. They feel informed. And an informed seller is a realistic seller. This means fewer markdowns, fewer days on market, and smoother trading for everyone.
Coach, don’t try to convince me
After all, the CMA is not right. It’s about being helpful. The agent who comes in determined to convince the number seller is acting against human nature. No one likes being told what to do. Agents come as coaches, armed with clear data and the right questions, allowing sellers to reach reality on their own terms.
That’s the difference between getting a listing and getting a client. One is to put up a sign in your garden. The other is to have a career built on trust, referrals, and a reputation that marketing can never generate.
