Hawaii Pre-Licensing National Practice Exam

Who has the final say in establishing the listing price of a property?

1. The real estate agent

2. The bank providing financing

3. The owner of the property

4. The buyer

The correct answer is: The owner of the property

The final say in establishing the listing price of a property rests with the owner of the property. This is because the property owner possesses the most intimate understanding of the unique features, benefits, and motivations for selling their home. They consider various factors including their financial goals, market conditions, and personal circumstances when determining a suitable asking price. While a real estate agent can provide valuable insights, market analysis, and recommend a competitive price based on comparable properties, it is ultimately the owner who decides what they believe their property is worth and how much they are willing to accept. The bank providing financing does not play a role in setting the listing price, as their primary concern is whether the property meets the requirements for a loan based on an appraisal, but they do not influence the initial asking price. Similarly, buyers may provide offers that represent what they believe the property is worth, but they do not have the authority to set the price at which the property is listed. Thus, the owner's decision is paramount in establishing the listing price.