This is THE question every seller asks and the one that makes or breaks your sale.

If you're thinking about selling in Pembroke Pines this year, pricing strategy is everything. We're not in the wild seller's market of 2021 anymore, but homes still move fast if they're priced right.

So your question cuts to the core: Is it more dangerous to aim too high… or go too low?

Let me break down exactly what happens in each scenario and why one is WAY more risky than the other.

Let's say your home is worth $750K based on recent comps. But you list it at $789K because:

Here's what actually happens:

1. You Miss the Critical First 7-10 Days

This is when your listing gets maximum visibility:

When you overprice, you waste this golden window. Buyers see the price, compare it to recent sales, and skip your listing entirely.

2. Serious Buyers Skip You. They Think You're Unrealistic

Experienced buyers (and their agents) know what homes are selling for. When they see a home priced 5-10% above market, they assume:

They don't bother scheduling a showing. They just move on to the next listing.

3. Your Home Sits And Sitting Creates a Stigma

After 30 days on market with no offers, buyers start wondering:

Your listing goes from "new and exciting" to "stale and questionable."

4. You're Forced to Take a Price Cut Which Makes You Look Desperate

After 45-60 days of sitting, you finally reduce the price to $759K (still above market, but closer).

Here's the problem: Price reductions are public. Every buyer and agent sees them in the MLS. Now buyers think:

You've lost all negotiating leverage.

5. You End Up Selling for LESS Than If You'd Priced Right Initially

Studies show that overpriced homes that sit and get reduced sell for 2-5% less than comparable homes that were priced correctly from day one.

Example:

You left $20K-$30K on the table by overpricing.

Now let's say your home is worth $750K, but you list it at $739K.

Here's what actually happens:

1. You Create Immediate Urgency

Buyers see a home priced $10K-$15K below recent comps and think:

Your phone starts ringing within hours.

2. You Get More Showings = More Offers = Better Negotiating Position

When you price aggressively:

3. Buyers Compete Against Each Other (Not Against You)

This is the magic of pricing under market:

When you overprice: You're negotiating against buyers. They're trying to get YOU to come down.

When you price under market: Buyers are negotiating against EACH OTHER. They're trying to beat each other's offers.

You're not in the negotiation, you're just choosing the winner.

4. "Too Low" Rarely Stays Low

Here's the reality: If your home is truly worth $750K and you list it at $739K, you're not selling for $739K.

What actually happens:

You end up selling for $755K-$765K which is $5K-$15K MORE than if you'd listed at $750K and negotiated down to $740K-$745K.

5. You Control the Timeline

When you price right (or slightly under), you can:

You're in control. Overpriced sellers are at the mercy of whenever a buyer decides to make an offer (if ever).

Let's compare two identical homes in Chapel Trail, both worth $750K:

Home A: Listed at $789K (overpriced)

Home B: Listed at $739K (priced aggressively)

Home B (priced under market) sold for $22K more and closed 72 days faster.

Here's the flawed logic sellers use:

"If I list at $789K, buyers will offer $750K, and I'll counter at $770K, and we'll meet in the middle at $760K."

That's not how it works anymore. Here's what actually happens:

When you overprice:

When you price right or slightly under:

"Room to negotiate" is a seller's market strategy. We're not in a seller's market anymore.

Let's be clear: There's a difference between "pricing aggressively" and "pricing stupidly low."

Pricing aggressively: Listing at $739K when comps support $750K is a smart strategy that generates competition

Pricing stupidly low: Listing at $650K when comps support $750K is leaving $100K on the table

The risk of pricing "too low":

But here's the thing: This almost never happens in practice because:

Translation: Pricing slightly under market ($10K-$20K) has virtually zero downside. Pricing over market has MASSIVE downside.

Here's how to determine your optimal listing price:

Step 1: Pull Recent Comps

Look at homes in your neighborhood that:

Don't use: Zillow estimates, tax assessments, or what you THINK it's worth

Step 2: Adjust for Your Home's Specifics

Compare your home to those comps:

Step 3: Determine Market Value Range

After adjustments, you should have a range. Example: $745K-$760K.

This is your market value range.

Step 4: Price 2-3% Below the Low End

If your range is $745K-$760K:

This creates urgency while still being defensible if buyers question the price.

Step 5: Set an Offer Deadline

List on Thursday. Set deadline for Tuesday at 5pm.

"All offers due by Tuesday, January 28 at 5:00 PM. Seller will review all offers and respond by Wednesday evening."

This creates urgency and forces buyers to compete on your timeline, not theirs.

The scenario: A Chapel Trail seller called me several months ago. Recent comps showed homes selling for $725K-$750K. Her home was in great condition, updated kitchen, pool, corner lot.

She wanted to list at $779K. Her neighbor told her "you can always come down."

I showed her the data: Homes in Chapel Trail priced over $760K were sitting 75+ days. Homes priced at $725K-$739K were getting multiple offers within 14 days.

What we did:

What happened:

Final result:

She made more money by pricing "low" than she would have by pricing "high."

Pricing too high:

Pricing slightly under market:

It's not even close. Pricing aggressively wins every time.

If you're serious about selling, especially in a neighborhood like Chapel Trail, where buyers know what homes are worth, it's way better to be slightly under than even a little over.

Let the market push your price UP, not pull it DOWN.

Here's my rule of thumb:

If recent comps support $750K:

The "safe" middle price ($750K) is actually the riskiest. It's not low enough to generate urgency, but not high enough to leave negotiating room that buyers will actually respect.

Price aggressively. Create competition. Let buyers fight over your home.

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