Revising the conceptual basis of price : a discussion paper on the impacts for residential agency agreements

Under the Property Stock and Business Agents Act 2002, and the 2003 Regulations to the act, there is an obligation on agents to set a realistic selling price for residential property. This can create a tension for agents, when faced with winning a listing for sale. The question of how accurately an agent or salesperson can estimate price, and under what conditions raises important questions regarding the nature and sociology of price. This paper critiques various theories of price in the light of the probability of a residential property sale in practice. The market theory of price is found to have significant practical shortcomings. It is argued that other interpretations may be more successful in understanding the sociology of price. In particular, it is argued that a revised methodology should be considered in order to push our understanding of property pricing forward.