3 Pricing Strategies to Sell Your House

🏡 3 Smart Pricing Strategies When Selling Your Home — Which One Fits You?

When it’s time to sell, there’s one question that always rises to the top:
“What should we list the house for?”

The truth is, there’s more than one way to price a home — and each strategy comes with its own set of pros and cons. Whether you’re downsizing, helping Mom and Dad move to a senior living community, or just looking to sell smart, here are three tried-and-true approaches we walk through with every seller.

💲 Strategy 1: The $1 Effect

Undermarket Pricing to Create Buzz & Buyer Competition

This is what we call an auction-style approach — pricing your home just below the average for the neighborhood. It grabs attention fast and gets more buyers through the door. The idea? More eyes, more offers, and a shot at a bidding war that drives your price up.

👍 Pros:

• Sparks excitement and urgency

• Generates multiple offers quickly

• May lead to selling over asking price

👎 Cons:

• Takes guts and trust — sellers need to be comfortable starting low

• If buyers don’t compete, you may sell close to (or slightly under) asking

This strategy works best when the home shows well, is priced under a key search threshold, and you’re ready to move quickly.

⚖️ Strategy 2: Fair Market Value

Using Recent Comparable Sales to Price It Just Right

This is the “Goldilocks” approach — not too high, not too low. We look at recent sales of similar homes nearby (condition, size, updates) and recommend a price that feels reasonable to both buyers and sellers. It's often seen as a win-win, especially when emotions run high.

👍 Pros:

• Attracts serious, qualified buyers

• Feels balanced and fair to both sides

• Often leads to smoother negotiations

👎 Cons:

• Doesn’t create urgency like underpricing

• May sit longer if there’s lots of competition

• Some buyers will still lowball, assuming you’ve “built in room”

This is a solid strategy when you want to stay competitive without undercutting your value — and it works especially well when the home is clean, move-in ready, and you’re not in a rush.

🧭 Strategy 3: Needle in the Haystack

Listing High with Room to Negotiate

This one’s familiar to a lot of sellers: “Let’s start high and come down if we have to.” The idea is that there’s someone out there who will pay top dollar — you just need to find them. And while that can work, it can also scare off qualified buyers who never even walk through the door.

👍 Pros:

• Sets a strong negotiation floor

• May work if the property is rare or highly desirable

• Can satisfy sellers emotionally (especially if they're not in a rush)

👎 Cons:

• Can lead to a stale listing with multiple price drops

• May miss your strongest buyers in the first 2 weeks

• Appraisal risk: even if a buyer bites, the lender might not agree

We call it the “Needle in the Haystack” because you’re waiting for the perfect buyer — which could take time or never show at all.

📝 Final Thoughts

Every home — and every seller — is different. There’s no “one-size-fits-all” price. What works for one family might not be the best move for another. At the end of the day, the right pricing strategy comes down to your goals, your timeline, and your comfort level.

Need help deciding which strategy fits your situation best?
That’s what we’re here for. Stephanie and I bring honest advice, years of local experience, and a handshake-style work ethic to every deal.

Let’s talk about your next move — and make sure your home gets the price (and attention) it deserves.

Brad and Stephanie Alexander - Alexander Home Team 

Brad - 512-296-6817 Stephanie 512-749-5992 

www.alexanderhometeam.com