Are Real Estate Agents Driving Up Property Prices? Let’s Talk About It

It’s a common perception — and one that comes up often in conversation.

“Agents are pushing prices up.” “They’re the reason property is so expensive.”

And while it might feel that way in the middle of a competitive campaign, the reality is more nuanced.

Because agents don’t set the market. Buyers do.

Price Isn’t Determined by the Agent — It’s Determined by the Market

No agent can force a buyer to pay more than they’re willing to.

Every sale comes down to one simple dynamic: what a buyer is prepared to pay, and what a seller is willing to accept.

When multiple buyers compete for the same property, the price is driven by demand — not by the agent.

In fact, if a property is underquoted or priced too low, it’s often the market that quickly corrects it through competition.

So Why Does It Feel Like Agents Are “Pushing” Prices?

Because of how the process is experienced.

When you’re a buyer:

• you may be competing against multiple other parties

• you may be asked to submit your “best and final” offer

• and you may feel pressure to increase your price

That pressure doesn’t come from the agent — it comes from the presence of other buyers.

The agent’s role is to facilitate that process, communicate between parties, and ensure the seller is informed of their options.

Our Responsibility Is to Represent the Seller — But Not Control the Outcome

As agents, we are legally and ethically required to act in the best interests of the seller.

That means:

• presenting all offers

• negotiating in good faith

• and helping the seller achieve the best possible outcome

But we don’t create demand — we respond to it.

We don’t decide what buyers will pay — we observe and communicate it.

Where Agents Do Influence the Outcome

While agents don’t set the market, we do play a role in how a property is positioned within it.

This includes:

• how the property is presented

• how it’s marketed

• how buyer interest is managed

• and how negotiations are structured

A well-run campaign can create more competition — and competition can lead to a stronger result.

But that result is still ultimately determined by buyers.

The Reality: It’s Supply and Demand

At its core, the property market is driven by the same fundamentals as any other market:

• how many buyers are actively looking

• how many properties are available

• and how those two factors interact

When demand outweighs supply, prices rise. When supply increases or demand softens, prices stabilise or fall.

Agents operate within this environment — we don’t control it.

Final Thought

It’s completely understandable why it can feel like agents are driving prices higher — especially when you’re on the buying side of a competitive market.

But the reality is, agents don’t set the price.

The market does.

Our role is to guide, advise, and facilitate — ensuring both buyers and sellers can navigate the process with clarity and confidence.

If you’d like a clearer understanding of how the market is behaving — whether you’re buying or selling — we’re always happy to have a conversation.

Davies Property Co. — different by design.