This is directed at agents...sometimes you may be faced with telling a prospective client "No" when listing.  Here's an example story:  Agent A viewed a prospective clients home and ran the numbers everyway he could. There is not good news for them. In their immediate neighborhood there are enough comps that an appraiser can use. In this case that's bad news because houses are on the market awhile and the numbers aren't up. The customer indicated the houses sell quickly in his neighborhood...but after the agent's research it is learned not according to the MLS. To even list the house at what was paid puts the customer near the high end.  This customer really has little equity since he financed with no down and he's in an area that has not yet increased in value even with the little upswing of the market that is happening right now. The upswing is definitely area specific.  The agent has to share that with him.... The client exclaims he's put 20k into the house and he thinks that should add value. Well, a little but mostly just enhances to make it more sellable as he hasn't added footage or anything.  And the improvements the customer has done are actually just maintenance items and would not be deemed as added value but certainly helps enhance the property to make it more desireable and sellable.  And  Agent A has to point out there are paint issues, caulking issues and thresholds that need to be added, etc. and the client still needs to do some work to make the house ready for listing not counting the staging that will need to be done.  The agent must share this along with the MLS numbers.

Listing a house high is listing it only to sit and will eventually make the seller mad at the agent!! Can't sell what people won't show because good agents run the comps and look at the numbers before they view a property.  The agent must explain you can list high but then no one will come see it no matter what improvements you've done...they'll go where the price range reflects the neighborhood.

 The agent learns the client may choose not to use him and then hires maybe an inexperienced agent hungry for a listing and willing to list it inaccurately.  Do not be discouraged...because YOU told the truth and the facts and you can't change the market . ... and to be a good agent you must stick with the facts when listing a will be rewarded in the long run!!