AZ Real Estate Partners
"The Other Agent Said $100k More" — The Pricing Trap Every Seller Falls Into
Hearing “I’ll get you $100k more” feels great. Don’t sign yet. Professionals back the number with sold data; talkers just promise what you want to hear.
Why "$100k more" is usually a sales tactic
OREA (Ontario Real Estate Association) flags the practice of inflating estimates to win listings — commonly known as “buying the listing.” Key point: any agent quoting $100k above neighbourhood comps must justify it with three sold comparables, line by line. Without that proof, it’s marketing, not pricing.
Why agents inflate the estimate
Sellers naturally pick the agent who promises the highest price. Sales-driven agents exploit this by quoting above market in exchange for a signed listing agreement (typically 90-120 days exclusive). Once signed, they pivot to recommending price reductions.
The industry term is “buying the listing” — trade a promise for a signature, then push the price down. The seller is locked in: reduce the price as advised, or face cancellation penalties to switch agents.
4 steps to expose a "$100k higher" claim
How "$100k higher" promises actually end
What to require before signing exclusive
1) Interview at least 3 agents and compare data; 2) Demand the full listing presentation with net sheet; 3) Term capped at 60-90 days; 4) Reduction protocol written into the contract; 5) Cancellation clause (no fee or low fee).
FAQ
What if the high-estimate agent is actually right?
Then they can prove it with sold comparables. Three real sold properties + line-item adjustments showing $100k of justified value = credible. "The market is hot" or "I'm experienced" = sales pitch.
I already signed a 120-day exclusive — how do I get out?
Check the cancellation clause. No-fee = negotiate amicable termination. Fee-based = weigh cost vs continuing. Within 30 days of expiry, most brokerages negotiate early release. A lawyer letter accelerates the conversation.
Agent says "try high for 2 weeks, reduce if needed" — trustworthy?
Acceptable, but only if written into the listing agreement: explicit reduction trigger (e.g., "if <10 showings + 0 offers by day 14") and exact reduction amount. Verbal promises aren't enforceable.
Why would the agent recommending "hold offers" actually quote a lower list price?
Hold-offers strategy lists below market (typically -5% to -10%) to create scarcity and trigger multiple offers. Final sale can exceed market. Lower list ≠ lower value when paired with the right strategy.
How do I identify an agent who can genuinely net me more?
Look at trailing 12-month list-to-sale ratio, average DOM, sale prices vs market for their last 5 listings. Data wins. Promises don't.
CONTACT
Arthur Zhao
Real Estate Broker · FRI · ABR · SRS · PSA · MCNE · E-PRO · GUILD Elite
VP & Branch Manager, Bay Street Group Inc.
For information only. Not legal or mortgage advice. Consult a licensed professional for your situation.
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