who decides listing price when selling?

My MIL is putting her house on the market and had a realtor come and look at the house yesterday. When my MIL asked how much she can sell the house for, the realtor said I don't know, how much do you want?
When my MIL told her the $$ she said it was too high. And told her to list for about $40k less than what she could really get for it.
I have never dealt with a realtor before, is this normal they don't know how much to list a house for. She brought comps with her too and smaller houses sold and are listed for more!!!

Re: who decides listing price when selling?

I kind of let my realtor decide what to list it for bc the market is saturated w/ apartments right now

Re: who decides listing price when selling?

Bring in another Realtor. In fact, you should interview 3 or more until you find someone you feel comfortable with.
The listing price can be set by the seller, or if the seller wants, by the listing agent. Ultimately it's the sellers decision. In my experience, it's best when both parties are in agreement on the price and no one is feeling pressured to list at a certain price. Use the comps as your base. Focus on comps within the past 3 months, located within 1.5 miles from your house, within the same town and school district, and similar in size, style and condition. These are the general criteria that the appraisers for the mortgage lenders will use when a buyer wants to purchase.
The goal is to get the highest price possible for the property, but unless it's an all cash transaction, the bank will "kill" the deal if they feel the buyer is overpaying for it. That's why the comps are so important.
Anyway, ask around-friends, co-workers, family, etc. for agents they recommend from past experience. You'll probably start to hear a few names repeatedly. Get 3 or so names, set 'em up to meet with you and see what they'll do for the commission they are asking. Get it in writing. A good Realtor will carefully explain pricing the home, the marketing strategy, commission, and any other questions you have.
If you have questions about the process feel free to ask. Best of luck!

Re: who decides listing price when selling?

Re: who decides listing price when selling?

as a realtor I would do a market anaylsis and help the homeowner decided what they think the house is worth with facts

I would not hire this realtor

Re: who decides listing price when selling?

Re: who decides listing price when selling?

I am a realtor and i completely agree with Beth. Sometimes there are sellers who dont like the numbers they are hearing with the market analysis and still want it listed at whatever they want so that is a different story.

Good Luck to your MIL