Managing expectations around pricing can be challenging, but it's essential for a smooth and successful property sale. Addressing pros & cons of different pricing strategies and their impact on selling prices early on helps clients understand that leading with an unreasonable asking price may not work in their favor. Research & my experience indicate that setting a realistic & well-researched listing price leads to a higher sale price & a shorter time on the market. Overpricing often results in extended listing periods, eventual price reductions & diminish interest. I find 'E.A.R.' is a helpful framework: Educate on process & market factors, Align expectations with current data & trends, Reassess for adjustments or alternative strategies.

First step is to listen and acknowledge their frustration. Let them know you understand how disappointing this can feel. Then, explain the appraisal process in simple terms & why it might not match their expectations. Offer to review the report together to see if anything was missed, like key upgrades or comparable sales. Share recent market data for context & help them see the bigger picture. From there, discuss their options whether that’s contesting the appraisal, adjusting the price, or finding other ways to move forward. Keep the conversation supportive & solutions focused, reassure them that this isn’t a dead end & you’re there to guide them through it. The goal is to help them feel informed, supported, & confident in the next steps.

In my experience I believe we can close the deal by 1) telling the real property value/accept the truth. 2) Why is it low, business perspective: The low value is influenced by factors such as comparable sales, property condition, and location. 3) Improvement through real estate practices: With strategic adjustments and market understanding, the value can be enhanced over time. 4) Share current market value: show the value which reflects the latest market trends and comparable sales in the area.

One way that I am able to help clients with appraisal value is by looking at different housing comparison tools before the process even starts. There is room for optimism or realism within those tools. I always stay on the side of realism. If it comes in way above what I communicated, it gives the clients great relief. If it comes out as expected, their expectations are already prepared for the news.