While it may seem risky, this move can actually work in your favor. A lower price attracts more buyers and creates competition.
When a lot of people want to buy your home, you have more choices. Not only do you collect the highest offer, but you can also choose better terms, secure financing, a flexible schedule, and fewer requirements.
A properly priced home sells faster. The longer a home sits on the market, the less interesting it becomes to buyers. A good price allows you to sell your home faster, and importantly, on your terms.
Why underpricing can be a strategic decision
Many sellers are afraid to price below market value for fear of underpricing. But in an overheated real estate market, this can be a real lever to trigger intense competition between buyers.
Case in point: the “auction” effect
When a home is priced a little lower than expected, interest spikes. Buyers feel they are getting a good deal and are willing to enter the competition. This often leads to the “auction effect,” where offers exceed initial expectations.
Buyer Psychology: How Price Affects Perception
Buyers in the US are used to intense competition and respond quickly to properties with an attractive price. Especially in markets like Los Angeles, where supply can be limited, favorable price positioning creates excitement.
Comparison: underpriced vs. overpriced
If you are underpricing:
- 📈 Number of showings: High – more people will be interested in your home
- 📨 Number of offers: Lots of offers – increases chance of choosing the best buyer
- ⏳ Time on market: Short – home sells faster
- 💰 Chance of selling above demand: High if there is competition
- 🧠 Impression to buyers: Urgent but favorable selling – generates interest
If you set an inflated price:
- 📈 Number of showings: Low – home may not get sampled by interested
- 📨 Number of offers: Low – few people will bid up
- ⏳ Time on market: Long – property may “hang up”
- 💰 Chance to sell above demand: Low – offers below asking price
- 🧠 Impression to buyers: “Too long on the market” – raises suspicion
How a Realtor helps in this process
My job as your Realtor in Los Angeles is to help you sell your home for the best price in the shortest amount of time possible, to list your home in a way that will immediately attract attention.
Frequently Asked Questions
Why not initially set the price I want to get?
Buyers avoid overpriced homes. Your goal is to attract the maximum number of interested people, not scare them away.
How much lower can I put the price?
Usually 3% to 5% below expected market value is a safe range that works for you.
Does this look like a desperate attempt to sell?
Not if the strategy is accompanied by a quality marketing campaign and professional positioning.
Are there risks involved?
As with any strategy, there are risks. But with proper preparation, they are minimal and controllable.
How do I know if this strategy will work for my home?
It depends on location, property type, season and current demand. Let’s discuss your case individually.
What neighborhoods in Los Angeles do you work in?
First and foremost Beverly Hills, then West Hollywood, Hollywood Hills, Brentwood, Santa Monica, Marina Del Rey, Studio City, Sherman Oaks, Calabasas
Conclusion
Setting an undervalued price when selling a home in the United States is not a losing proposition, but a smart marketing move. With the right approach, it can lead to more offers and more favorable terms.
📊 Interested in learning about the average selling time and price ratio in the market?
💼 Want to discuss a strategy that will help you achieve the best results?
📞 Contact me – and let’s find the best solution for selling your home.
Source of Maria’s video Reels — instagram.com/reel/DJCjv8eTjqG/
Author Maria Schmaglius Realtor in Los Angeles
