When Sellers Reward the Wrong Behavior: How “Buying the Listing” Is Quietly Wrecking the Market
Reclaiming proper Behavior with Sellers and Buyers Taking the Lead Again
Sellers don’t like being lied to — but far too many are rewarding the lie anyway. And that’s how we end up with the classic scenario:
List at $1,869,000. Sell at $1,525,000. Lose $344,000 in the process.
Of course the real question is if the agent that did not win the listing had positioned the home at $1,649,000 would it have sold there? Maybe. Given that the seller wanted to be closed within 90 days.....but it took almost 180....yes they probably lost more in the process than necessary by the small price step downs. But is it really the agents fault? Sellers. Dig deeper and ask questions. Use challenging intellect. This is a very important business engagement.
But because the listing agent *bought the listing, the outcome was not good. *
They told the seller what the seller wanted to hear. Not what was true. Not what the data justified. Not what a real professional with a spine would say. Needless to say we were the losing “truthful” agent. We proved to be correct, but what is the reward for that for us? Confidence in our process and methods and staying rooted in truth.
And then — after the dust settles and the seller has eaten the price drop — they leave a glowing review. Why?
“Great experience!” “Sold my home!” “Highly recommend!”
That review is part of the disease. It keeps the cycle alive. This is the cycle that our team along cannot break. It requires market participants, sellers, to engage more correctly. How?
The Real Problem: Nobody Is Interviewing with Any Real Rigor
Sellers aren’t pushing hard enough. Buyers aren’t pushing hard enough. And the industry is coasting on that lack of scrutiny.
The public interviews an agent about as seriously as they interview a waiter.
Meanwhile:
Some top-producers are exceptional. Some are not.
Some top-producers bulldoze their own clients because they’ve forgotten what service actually means.
And some agents with polished marketing don’t actually have the skillset or the courage required to guide someone honestly or to negotiate properly according to the contract terms and strategy.
Volume doesn’t mean competency. Marketing shine doesn’t mean strategy. And a beautiful Instagram grid doesn’t mean they know how to price a home within 10% of value. By the way, most agents seem to have also forgotten the code of ethics.
“Knowingly misrepresenting a property’s value can violate several articles of the Code of Ethics. Article 1 requires REALTORS® to protect client interests while dealing honestly with all parties. Standard of Practice 1-3 under Article 1 specifically prohibits deliberately misleading an owner about market value when seeking a listing. Article 2 mandates that REALTORS® avoid exaggeration or misrepresentation of relevant property facts. Additionally, Article 12 requires REALTORS® to be truthful in communications and present a true picture in marketing. “
Wonder how many sellers even know that? Obviously many realtors do not abide by it.
Sellers hire the wrong person because the wrong person knows how to perform the show.
And everyone pays for it.
Buying the Listing: The Oldest Trick in the Book
It looks like this:
Agent tells seller the home is worth more than reality.
Seller feels flattered and optimistic.
Agent secures the listing.
Weeks pass. Momentum dies.
Price reductions begin.
Buyer perception shifts: “What’s wrong with it?”
Seller ends up accepting a number they could have achieved on day one — or worse.
This is not strategy. It is avoidance dressed as optimism.
And the industry lets it continue because the outcome — a sale — still gets rewarded. We measure ourselves on Sales Price to Original!!! list Price. We do very well on that metric compared to others. Moreover, if we price correctly and properly we are also encouraged to bring our clients to our good listings and have confidence in the pricing.
The Only Fix: Tell the Truth Even When It Hurts
A competent agent does not say, “Let’s list high and see what happens.”
A competent agent says, “Here’s reality — and here’s the cost of ignoring it.”
It’s uncomfortable. It risks the listing. It makes some sellers defensive. It exposes the agent to being fired.
But it’s the only professional path.
Truth prevents loss. Truth protects momentum. Truth makes you money.
And when truth is paired with real analysis, real strategy, and disciplined presentation, the market responds immediately.
Do we sometimes fail here? No we do not. Overtime as our confidence has become more rock solid based on our pricing models and the long term tracking of results...we simply do not take listings if we cannot see a way to serve the client with a successful close.
Sometimes of course like the last couple of years the market has shifted under what would have previously been solid pricing and the adjustment to the current market has been hard for many.
A Real-World WaterColor Example
This is what it looks like when truth, strategy, and alignment actually come together.
Three years ago, Ariel met a man at an open house. No pressure. No sales pitch. Just a humble, kind conversation — the type of interaction people remember because it’s real.
He remembered her for three years.
Fast forward. He decides it’s time to list his WaterColor home. He calls us — along with a few other agents — and we sit down at the table.
We won the listing. Here’s why:
1. The “Secret Sauce” Isn’t a Secret — It’s Reality
We were honest about how the home actually felt and how it needed to be presented. We weren’t there to flatter him or chase a fantasy number. We were there to tell the truth — respectfully, professionally, and clearly.
2. We Don’t Use Pricing Per Square Foot
Most agents start and end with price-per-foot. It’s the easiest metric to parrot and the least relevant to actual home value.
We don’t do that.
Size is not the statistical driver of pricing. Never has been.
We dissect the factors that actually move value:
Elevation of finishes
Condition and chronology
Architectural relevance
Lot premium
Outdoor quality
Street alignment
Floorplan efficiency
Micro-location inside the community
Buyer psychology
Comp momentum, not comp arithmetic
No one else in the interview did that. They couldn’t — because they don’t know how.
3. We Identify the Buyer Before We Price the Home
You don’t price in a vacuum. You price toward the buyer you know will pay it.
We identified the buyer type immediately. Everything else followed.
4. We Work to Bring Our Own Clients — and Often Do
Before we ever hit the public market, we conducted four private showings with qualified, aligned potential buyers.
The goal? Control momentum. Control narrative. Control perception.
And it worked.
5. One Day on Market — Offer Accepted
When the home finally went public:
Three showings in the first day
Under contract immediately
1.5% below list price
That’s not luck. That’s alignment.
That’s what happens when clients and professionals tell each other the truth and act on it together.
The Message Sellers Need to Hear
Stop rewarding the wrong agents.
Stop believing the flattering number. Start believing the believable one.
Ask harder questions:
How do you build your pricing model?
What factors drive value in this neighborhood?
How do you control early momentum?
How do you identify the buyer segment?
What’s your average days-to-contract?
What’s your list-to-sale ratio?
How do you prevent a 30-day stale listing?
If the agent can’t answer clearly — walk away.
The Market Doesn’t Need More Listings. It Needs More Truth.
The industry is filled with noise, ego, and performance.
But real estate always rewards:
Accurate numbers. Disciplined presentation. Early momentum. Alignment.
The agents who tell the truth — even when it stings — are the ones who protect your wealth.
And in a market where being wrong costs hundreds of thousands of dollars, that truth is worth more than any marketing package, drone video, or cheerful five-star review written after a $344,000 loss.
Choose better. Interview harder. Reward honesty — not theater.