It might seem risky to list your home below its market value, but in many cases, this strategy can actually help you sell for more money in the end. Underpricing taps into the psychology of buyers who believe they’re getting a deal, which can lead to increased competition. The result? A potential bidding war that drives the price higher than you initially expected.

Buyers tend to gravitate toward homes they think are priced competitively, and when multiple buyers are interested, the offers come in fast—and often for more than the asking price.

The Trick to Getting Buyers In It to Win It.

What Is FOMO? FOMO is a powerful psychological trigger that makes people want something because others want it too—or because they might miss out if they don’t act quickly. In real estate, it can turn a casual interest into a serious offer.

How It Works in Real Estate:

• Creating Urgency: A well-priced home sparks buyers to act quickly, thinking if they don’t, someone else will snatch it up.
• Increasing Demand: When buyers perceive a home as popular or in demand, they are more likely to offer higher and faster to avoid missing out.

How to Use It: Price slightly under market value to generate interest and consider holding an exclusive open house. This creates visible competition among buyers and builds pressure to act quickly.

These three pricing strategies will help you stand out and attract more buyers with proven science and tested anchoring heuristics.

1. Price Just Below Market Value

Why It Works: Underpricing slightly can increase interest by making your home seem like a great deal, encouraging more buyers to take a closer look. This tactic often leads to multiple offers, driving the final price higher than you’d expect.

Example: Listing at $295,000 instead of $300,000 makes your home appear more affordable, drawing in buyers who might otherwise have skipped your listing.

2. Use Charm Pricing

Why It Works: Prices ending in ‘9’ or ‘7’ work because they feel lower to buyers, even when the difference is small. This is called charm pricing, and it’s commonly used in retail for a reason: it works.

Example: Pricing your home at $299,997 feels significantly lower than $300,000, even though the difference is minor. This impression of value appeals to buyers’ instincts, which makes them more likely to notice your home.

3. Set Price Thresholds

Why It Works: Buyers often search for homes within specific price ranges. If your home is listed just below a common threshold, it shows up in more search results, leading to more potential buyers viewing your listing.

Example: A home priced at $299,000 will capture the attention of buyers searching for homes under $300,000, giving you greater visibility than pricing at $305,000.

1. Ignoring Market Trends: Failing to adjust your price according to the current real estate climate can hurt your chances of selling quickly.
2. Pricing Based on Emotion: Setting a price based on sentimental value rather than market value can alienate potential buyers.
3. Not Reevaluating: If your home isn’t generating interest, it’s essential to reassess and adjust your pricing quickly.

One of the most important conversations you’ll have with your real estate agent is about pricing—and what happens if you don’t agree on the right price. It’s crucial to address this early to avoid potential friction or misalignment down the road.

Why Does This Matter?

Some agents, afraid of losing your business, may shy away from tough conversations about pricing. But when an agent isn’t realistic with you about the market, you’re at risk of overpricing your home. This leads to it sitting on the market for too long, which can ultimately hurt your bottom line.

Agent Expectations:

Instead of glossing over the pricing conversation, your agent should walk you through a pricing plan that outlines what happens if the price isn’t right from the start. This might include:

• Market Analysis: A thorough review of comparable homes that have sold recently.
• Initial Pricing: A proposed range based on current market conditions and comparable properties.
• Timeline for Price Adjustments: A strategy for revisiting the price if interest or offers aren’t coming in within a specific timeframe.

Why Choose EZ Listing Specialists?

Having a strong pricing plan is essential for success. When you partner with an EZ Listing Specialist, you’re getting more than just a market analysis—you’re getting expert strategies designed to help you sell fast, attract competitive offers, and maximize your return. Don’t leave this critical step to chance!

EZ Listing Specialists aren’t just experts in pricing; they’re trained to have the tough conversations upfront, giving you a realistic and strategic pricing plan from the very start. With expertise in pricing psychology and current market trends, they know exactly how to help you price your home to sell quickly—without sacrificing your bottom line.

Plus, EZ Listing Specialists offer 0% commission options, which can be a game-changer when thinking about pricing low to attract offers. This helps offset any concerns about “underpricing” because you’re saving on fees, ensuring that more of the sale price ends up in your pocket.