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When Should You Lower Your Price When Selling A Home?

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There is a best time to lower your asking price when selling your home, and most real estate agents and home sellers get this wrong.

In the video above and the narrative below, we will challenge everything you’ve been told about pricing your home. I’ll reveal why the traditional approach to price reductions is outdated and how you can use modern strategies to create a bidding war for your property. Are you ready to sell your home faster and for more money? Then, let’s dive in!

The Emotional Trap of Home Pricing

Picture this: your dream home: spacious rooms, a gourmet kitchen, and that perfect backyard for summer barbecues. Now, here’s the twist – it’s not the home you’re dreaming of buying. It’s the one you’re trying to sell. Surprised? You’re not alone.

When it comes to selling our homes, we often fall into an emotional trap. We see our property through rose-colored glasses, remembering every family dinner, every holiday celebration, and every milestone that happened within those walls. But here’s the hard truth: buyers don’t share those memories, and they certainly won’t pay extra for them.

This emotional attachment can lead to some serious pricing mistakes. I’ve seen sellers insist on listing prices way above market value because “this house is special.” They’ll point to the custom paint colors, the carefully tended garden, or the memories of raising their children there. But guess what? The market doesn’t care about any of that.

Let me share a real example. I met with a couple who were convinced their home was worth $50,000 more than comparable sales in the area. They refused to budge on the price, certain that the “right buyer” would come along and see the value. They hired an agent who didn’t mind disappointing them. Six months later, after multiple price reductions and missed opportunities, they listed with me. We sold the house quickly, at full market value, but they endured six months of showings and low-ball offers, and having the added expense of living apart for several months while making two house payments.

Everybody has some level of emotional attachment to their homes, so, what’s the solution? It’s simple, but not easy: emotional detachment. You are not selling your home, you are liquidating a valuable asset. You need to view your home through the eyes of a potential buyer. They’re not looking at your memories; they’re comparing your property to others on the market. They’re thinking about their budget, their needs, and whether your house is the best deal they can find.

Remember, buyers are savvy these days. They’ve done their research, they know the market, and they have high expectations. I bet you’ll be a savvy buyer for your next home, right? Sure. Everybody who has internet access can educate themselves on the market. If your price doesn’t align with current market conditions, you’ll be quickly dismissed as overpriced.

Here’s the payoff: when you price your home based on market realities rather than emotional value, you set yourself up for success. You’ll attract more potential buyers, create more competition, and ultimately, sell faster and for a better price.

But don’t think emotions are the only factor clouding your judgment when it comes to selling your home. When you tell a real estate agent what you want to get for your home, the agent might say “OK” because they are trying to get you to hire them. You should interview agents who will demonstrate integrity, telling you what the market is saying, not what you want to hear.

And there’s another powerful force at play, one that could make or break your sale. And it might be closer than you think…

The Neighborhood Stalker: Your Ultimate Target

You know that feeling when you’re being watched? In the world of real estate, that’s actually a good thing. Someone out there has been keeping tabs on homes in your area, including yours. They’re not just nosy neighbors—they’re your ticket to a fast, profitable sale. But here’s the catch: you need to know how to play your cards right.

Let me introduce you to the “neighborhood stalker.” No, they’re not creepy—they’re serious buyers who’ve been eyeing your neighborhood for a while. These folks are on a mission to find their dream home, and they’ve been watching and waiting for the perfect opportunity.

Here’s the thing: these stalkers are savvy, and they move fast. They’ve done their homework and they know exactly what homes in your area are worth. They’re not looking to overpay, but they’re ready to make a move when the right house hits the market. And guess what? Your home might be exactly what they’ve been waiting for.

Now, you might be thinking, “Great! They’ll pay whatever I’m asking!” Not so fast. Remember, these buyers are well informed. They’re trying to get your home for a good price, maybe even a bit less than market value. But don’t let that discourage you—it’s actually an opportunity.

These neighborhood stalkers are often the first to make offers on new listings. Why? Because they’ve been in the game for a while. They’ve probably missed out on a few homes already, and they’re determined not to let another good buy slip through their fingers. This means they’re likely to make an offer that’s pretty close to what you want—and they’ll do it quickly.

But here’s where it gets really interesting. These motivated buyers have the potential to pay top dollar for your home. They’ve been searching for months, maybe even years. They know your property’s value and are emotionally invested in the idea of living in your neighborhood. If you play your cards right, you can turn their eagerness into a higher sale price.

So, how do we leverage this knowledge? It’s all about creating urgency. We need to make these stalkers feel like they might miss out on their dream home if they don’t come in strong. This is where innovative marketing comes into play. We’re not just selling a house—we’re selling the lifestyle they’ve been dreaming of.

The payoff? When we create the proper urgency, these neighborhood stalkers can become your best buyers. They’re ready to move quickly, understand your home’s value, and are emotionally invested in the area. It’s a recipe for a fast sale at a great price.

But here’s the million-dollar question: how do we create that sense of urgency in today’s digital age? How do we reach these stalkers and make them feel like they must act now? Well, that’s what I’m going to address next.

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The Digital Revolution in Home Sales

So, let’s talk about our neighborhood stalker. They’re usually the first to pounce when a new listing appears. And that can be a problem. Why? Because if they make a decent offer immediately, you might be tempted to grab it. After all, a bird in the hand, right? But hold on – you could be leaving serious money on the table.

Let’s look at why home sellers are making mistakes with their pricing. It took about 60 days to fully expose a home to the market in the old days. There was no internet, photos needed to be developed, and production schedules could take over a month to hit important print media. 

Sellers were advised to price it a little high so that the neighborhood stalker wouldn’t steal it away. Agents would hold open houses, put ads in the newspaper, magazines, and printed MLS books, and slowly but surely, word would spread. Sixty days after everything was syndicated, sellers were advised to lower their price near market value. But oh, how things have changed.

Now? 95% of home buyers are using the internet to find their next home. And get this – within just four days of listing, you’ve reached almost everyone interested. But those first few days of the property being available leave the stalker in an advantageous situation as he’s the only ready buyer prepared to make an offer.

So, what does this mean for your pricing strategy? It means you need to be brilliant from the get-go. You can’t rely on the old method of listing high and gradually lowering your price. When you drop it, most buyers have already seen your listing and moved on. Then, your listing becomes stale and appears less attractive.

Many sellers tend to believe they are in a one-on-one relationship with their next buyer, and I’ve heard many real estate agents say, “It only takes one buyer” to get a home sold. But that kind of outdated thinking costs sellers money.

Remember, the goal here is to create a sense of urgency and buyer competition. When multiple buyers are interested, they’re more likely to put their best foot forward with their initial offer. As I often say, “It takes MULTIPLE BUYERS for you to get TOP DOLLAR!”

This strategy also shifts the dynamics of negotiation in your favor. With multiple offers on the table, you’re not negotiating downward with the stalker. Instead, many buyers are competing upward with each other. In today’s digital world, you can attract numerous buyers making offers, so you don’t have to negotiate down! It’s the buyers who have to do all the heavy lifting here.

So, how do we delay the stalker while attracting more buyers? It’s all about strategic pre-marketing. Think about how Apple builds hype for a new iPhone months before it’s available. We can do the same with your home. We create buzz, get buyers excited, and set the stage for a competitive market before the home is available for buyers to view. We launch the listing like an Apple product launch, getting buyers in line to see it the day it goes live.

The payoff? When you use strategic pre-marketing in this digital age, you can create the perfect storm: high exposure and high urgency. It’s about controlling the narrative and timing your official listing date for maximum impact. The neighborhood stalker has to wait to see the home during the pre-marketing stage, during which we build interest among all the ready buyers in the market. This removes the stalker’s advantage and raises his fear of missing out again.

So, now that we know how to navigate this digital landscape, you’re probably wondering: how exactly do we turn all this knowledge into cold, hard cash? Well, buckle up, because I’m about to explain how to create a bidding war that’ll have buyers fighting over your home.

The Best Time To Lower The Price In A Home Sale

So there you have it – the power to control your home’s sale price was always in your hands. You just needed to know when and how to use it. 

Buyer Pool For Your Home

The best time to reduce the price is before you list the home for sale. A price that reflects 97% to 99% of its market value will attract multiple buyers in your price range. Your house will be the best deal on the block, attracting interest to your grand opening.

Buyers will know what it’s worth, and you might even fetch an above-market value from the stalker who won’t want to let another home slip away. By pricing strategically BEFORE listing, leveraging digital marketing before your listing is available, and understanding buyer psychology, you can create that coveted bidding war and sell for top dollar.

I encourage you to rethink your selling approach. Avoid overpricing and hoping for the best. Instead, be proactive and strategic from the start. And remember, in today’s fast-paced digital market, timing is everything.

As we look to the future of home sales, one thing is clear: those who adapt to the digital age and understand market dynamics will come out on top. So ask yourself – are you ready to sell your home smartly? To learn more about maximizing your sales in today’s market, check out my video, “6 Tips for Selling a Home in 2025.” The future of real estate is here – are you prepared?

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