Running comps for a seller is necessary, but not sufficient in determining market value.  In a declining market, looking at past sales is like attempting to drive to a destination by focusing on the rear view mirror.  The current competition and absorption rate are more relevant.

Last week I listed a cute two bedroom house (863 sq ft) in Mesa, Arizona.  The seller was serious about selling.  The property had been on the market for the past six months with two other agents.  There were a dozen showings, but no offers.  The owner was frustrated and confused.  The seller stated his price was competitive based on comps in his subdivision.

The problem is that the seller is emotionally attached to his property.  In addition, he is too close to the 'trees' in his own subdivision that he fails to see the 'forest' of similar properties in his town that a buyer may consider.

Currently there are 227 similar properties that are active in this town.  This represents a 14 month supply.  The median property is newer, larger, and has more amenities.  This is why a property can comp out in one area, yet remain unsold.

How can an agent communicate this dilemma to a struggling seller?  Hold you arm straight out with the palm facing the seller.  Ask the client if they can see your hand.  Most will quickly agree they can.  Tactfully disagree.  The seller can see you palm, but they can't see the back of your hand, or between your fingers.  This represents the properties the buyer can view, but sellers are unable to measure.

A property is only worth what a buyer is willing to pay.  If a listing is overpriced, there will be few if any showings.  Or, there will be showings, but no offers.  This latter dilemma is called 'always the bridesmaid, but never the bride'.

A proactive listing agent needs to courage to ask for price adjustments at least every two weeks until the property is sold.  Persistence and patience are poor substitutes for proper pricing.