Why Your Asking Price Could Make or Break Your Sale—and How a Broker Can Help

Set realistic and data driven pricing.

Author

BRETT VOGELER
March 17, 2025

In partnership with

Did you know that over 70% of businesses listed for sale never actually sell? One of the biggest culprits behind this startling statistic is unrealistic pricing expectations. Whether you’re selling a business or a property, setting the right price is crucial—and it’s often where emotions and market realities collide.

As a seller, it’s natural to feel a deep connection to what you’ve built or owned. Years of hard work, memories, and personal investment can make it tough to see your business or property through the eyes of a buyer. But here’s the truth: buyers don’t care about your emotional attachment. They care about value, market trends, and a fair deal. That’s where a broker steps in—to bridge the gap between your expectations and what the market will actually bear.

The Common Mistake: Overpricing (and Why It Happens)

It’s easy to fall into the trap of overpricing. After all, your business or property is more than just numbers on a balance sheet—it’s a part of your life. But when sellers set an asking price based on sentiment rather than data, they risk scaring off potential buyers. Overpriced listings often sit on the market for months, leading to price cuts, frustration, and, in many cases, no sale at all.

Take this example: A small business owner, after years of growing their company, decides to sell. They set an asking price based on what they feel it’s worth, not realizing that buyers are looking at earnings, market conditions, and comparable sales. Six months later, the business is still unsold, and the owner is left wondering what went wrong.

This scenario plays out far too often. Emotional attachment clouds judgment, and without a clear understanding of valuation methods, sellers can set themselves up for disappointment.

How a Broker Can Help You Price It Right

A broker isn’t just a middleman—they’re your guide through the complex world of valuations and market dynamics. With their expertise, they can help you avoid the overpricing trap and set a price that attracts serious buyers. Here’s how:

  • Thorough Valuation: Brokers use proven methods like earnings multiples, discounted cash flow (DCF), and market comparisons to determine your business or property’s fair market value. For instance, a tech company might be valued at 3x revenue, while a service firm could be closer to 0.5x. These aren’t guesses—they’re data-driven insights.

  • Market Analysis: Brokers don’t just look at your numbers in isolation. They analyze recent sales of similar businesses or properties, giving you a clear picture of what buyers are willing to pay. This is especially important in real estate, where location, condition, and market trends can heavily influence value.

  • Balancing Goals and Reality: A good broker listens to your goals—whether it’s a quick sale or maximizing profit—and helps you set a price that aligns with both your timeline and the market. They’ll also explain the risks of overpricing, like reduced buyer interest and longer time on the market.

Pro Tip: Ask your broker to show you comparable sales data. Seeing what similar businesses or properties have sold for can be a powerful reality check.

A Step-by-Step Guide to Setting the Right Price with Your Broker

Working with a broker doesn’t mean handing over control—it’s a partnership. Here’s how you can collaborate to set a competitive, realistic price:

  1. Conduct a Detailed Valuation: Your broker will use multiple methods to assess value. Be open about your financials and operations to ensure accuracy.

  2. Analyze Market Trends: Look at recent sales and current demand in your industry or location. Is it a buyer’s or seller’s market? This context is key.

  3. Consider Your Goals: Are you looking for a fast sale, or are you willing to wait for the right offer? Your broker can help you weigh the trade-offs.

  4. Set a Competitive Price: Aim for a price that attracts buyers while leaving room for negotiation. A slightly flexible range can also be effective, especially in uncertain markets.

Case Study: A family-owned restaurant in a prime location was struggling to sell after six months on the market. The seller insisted on a high price due to sentimental value. After bringing in a broker, they conducted a market comparison and adjusted the price based on recent sales of similar restaurants. Within three months, the restaurant sold at a fair price, and the seller walked away satisfied.

What If You Disagree with Your Broker?

It’s not uncommon for sellers and brokers to have different views on pricing. If you find yourself in this situation, don’t panic—there are ways to find common ground:

  • Get Involved in the Valuation: Ask your broker to walk you through their process. Understanding how they arrived at their number can help you see the logic behind it.

  • Consider a Price Range: If you’re hesitant to commit to a single price, suggest a range. This gives you flexibility while still staying within market realities.

  • Agree on a Strategic Plan: Maybe you start a bit higher but commit to reducing the price after 60 days if there’s no interest. This keeps the listing fresh and responsive to buyer feedback.

Remember: A broker’s goal is to help you sell, not to undercut your expectations. Trust their expertise, but don’t be afraid to ask questions or voice concerns.

The Bottom Line: Trust the Process (and the Data)

Selling a business or property is a major financial and emotional decision. It’s easy to let feelings cloud your judgment, but the market doesn’t care about emotions—it cares about value. That’s why working with a broker is so crucial. They bring the data, the experience, and the objectivity needed to set a price that works.

Don’t let overpricing be the reason your sale falls through. Instead, partner with a broker who can guide you through the process, from valuation to closing. You’ve worked hard to build your business or invest in your property—now let’s make sure you get the deal you deserve.

Ready to get started? Contact us today for a free consultation and take the first step toward a successful sale. [email protected]

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