Every seller asks me the same question:

“Mike, what’s my home worth?”

Fair question. But it’s the wrong place to start.

Because pricing isn’t about picking a number. It’s about choosing the right strategy.

And in today’s market, where rates are higher, inventory is up, and buyers are picky, that matters more than ever.

This is the exact framework I use with every seller I work with.

Every successful sale sits at the intersection of three things:

Miss one, and you either leave money on the table or sit on the market wondering what went wrong.

This is the part everyone expects but most people only look at half the picture.

When most sellers think about pricing, they think about comps or comparable sales.

And yes, comps matter. But if you're only looking at what sold, you're making decisions based on where the market was, not where it is now.

Here's what we actually look at:

That middle category, under contract, is where the real story is.

Why?

Because "under contract" tells you what buyers and agents are deciding to offer on today. Not three months ago. Today.

If we see homes in your neighborhood going under contract at $675K–$685K, but the most recent closed sales were at $695K–$705K, that tells us something important:

The market has softened slightly, and buyers are negotiating harder.

If we price your home at $699K based on old sales, we're pricing for a market that no longer exists.

But if we price at $679K based on what's actually moving right now, we're aligning with perceived market value. The number buyers and agents are using today when deciding what to offer.

That's the market talking. Not opinions. Not guesses.

Here's the part most agents skip and it's where deals are won or lost.

Because the "right" price depends on you.

Not just on the market. On you.

Here are the questions I ask every seller:

1. How fast do you need to move?

Your timeline changes your pricing strategy.

If you need to move fast, we price aggressively to create urgency and attract multiple offers.

If you have time, we can price slightly higher and see what the market gives us knowing we can always adjust.

2. What number actually makes you feel good about selling?

This is the emotional piece and it's real.

Some sellers need to net a specific amount to buy their next home. Some want to walk away with enough to pay off debt or fund retirement. Some just don't want to feel like they "lost" money.

If the market says your home is worth $700K, but you need to net $650K after commissions and closing costs to make your next move work, we need to know that upfront.

Because if the market won't support that, we either need to adjust your expectations or get creative with the strategy (pricing higher and being prepared to negotiate, offering incentives, etc.).

3. Where's the line where you'd rather not sell at all?

This is the walk away number.

Every seller has one even if they don't realize it.

Knowing this number helps us price strategically because if we're not going to hit it, there's no point listing in the first place.

This is your truth and it matters just as much as the market's truth.

Pricing without this context is like setting a GPS without a destination. You might end up somewhere, but it probably won't be where you wanted to go.

Once we understand the market and your goals… now we choose the strategy.

And here's the part most people overcomplicate:

There are really only three pricing strategies that matter.

Everything else you hear? Mostly noise.

Let me break them down.

STRATEGY #1: ASPIRATIONAL PRICING

Testing the market above perceived value

Use this when:

Avoid this when:

STRATEGY #2: PERCEIVED MARKET VALUE PRICING

Aligning with what buyers are paying right now

Use this when:

Avoid this when:

STRATEGY #3: EVENT PRICING

Pricing aggressively to create urgency and competition

Use this when:

Avoid this when:

Here’s the simple way to decide:

1. How unique is your home?

2. How fast do you need to sell?

3. What’s your risk tolerance?

Example decision tree:

Seller: Chapel Trail, 4/3, pool, updated, good condition, needs to sell in 60 days, not desperate but wants it done.

Market: Perceived market value is $699K–$709K based on recent activity.

Decision:

Expected outcome: 8–12 showings in first 3 weeks, 1–2 offers within 30–45 days, close at $690K–$695K after minor negotiation.

THE PART MOST PEOPLE DON'T REALIZE

Here's the truth that changes everything:

Most sellers don't get this.

They list at $729K (aspirational pricing), sit for 45 days, then drop to $719K and expect immediate results.

But here's the problem:

A $10K price drop resets the search filters but it doesn't reset buyer perception.

If you're going to drop the price, you need to:

Otherwise, you're just a house that "couldn't sell" with a slightly lower price tag.

WHAT I'D TELL A FRIEND

If a friend asked me how to price their home, here's exactly what I'd say:

Pricing isn't about finding "the number."

It's about choosing the right strategy for your situation.

Because the sellers who win in this market aren't guessing.

They're aligning:

Get that right and the price takes care of itself.

Need help figuring out which strategy is right for your home? I've got you. Just ask.

Have a question for next week's Ask Mike? Hit reply and ask. I answer every one.