A competitive marketing analysis is a tool that real estate agents use to help home sellers determine what their marketing price should be in today's market. The good news is that it is a free service; The not-so-good news is how accurate they could be.

When it comes time to sell a home, it is recommended that each home seller interview several agents before choosing the best one. It is during the interview that the competitive marketing analysis is performed.

Logically speaking, all real estate agents will use the same information database (MLS) when setting a marketing price, so you would think it would be a straightforward process with all results pointing towards the same number. Unfortunately, this is not always the case, resulting in inaccurate home prices and unusually long times to market.

Let's investigate the top two reasons why the competitive marketing analysis provided by real estate agents might not be accurate.


The real estate industry is one of the most competitive industries in the country. At the time of writing, there are 1.2 million licensed real estate agents in the United States competing with each other for business. How does a real estate agent compete with so much competition?

They 'buy the listing', of course!

Suppose you interview three agents. The first and second agents say your home is worth $ 250,000 and $ 255,000 respectively and show you evidence to support their analysis.

However, the third arrives brimming with confidence and says that the first two realtors are absolutely crazy and with those numbers you will be giving your home away. "I think your house will sell for at LEAST $ 275,000" and then provides new 'evidence'. (Important point: it is very easy for a real estate agent to manipulate data to JUSTIFY a price. A justified price does not equal what a buyer is willing to pay!)

Well, God, what can a home salesman do? It's a no-brainer. They will go to the real estate agent who said they could get more. Who would not? Over the next 30 to 60 days, the real estate agent will encourage the price reduction until it reaches a value that interests potential buyers.

And that's what you call "buying a listing". It's when a real estate agent 'overvalues' the house to get the listing. Competitive marketing analysis is very likely not accurate at all. It wasn't meant to be. The real estate agent's goal is to get listed even if it means stretching the numbers.


According to the 2009 Member Profile of the National Association of Realtors, forty-two percent of all Realtors have been in business for less than five years. Forty-five percent of these newbies completed fewer than five transactions per year.

The bottom line is that there is a very good chance that the real estate agent you are interviewing has little or no experience in conducting an accurate competitive marketing analysis. It's not that they don't care, that they don't have a good heart, or that they want to do their best for you; they simply lack the knowledge to give accurate numbers in real life.


Of course, not all real estate agents are inept when it comes to setting prices for homes. In many cases, the real estate agent will suggest an exact price only for the home seller to come up with a different suggestion. As the cliché goes, you can only lead one horse to the water ...

When interviewing agents, the best way to get the most accurate value is to question everything the realtor says. Change your thinking boundary to a buyer instead of a seller. Play devil's advocate with the real estate agent.

Don't just take their word for it. Challenge them. Ask them. After all, it is still your home and you will make the final decisions, https://www.bbuddy.app/.

Author's Bio: 

An investor's opportunity to succeed in the stock market requires, at the very least, sound market analysis.