Why There's No Such Thing as Pricing a Property Too Low

As an experienced Florida Realtor, I hear it all the time: sellers worry that lowering their list price means they’ll end up walking away with less money. It’s a logical fear but an unfounded one. The truth is, the list price is just a starting point, not the finish line. The actual sale price will always be the market value—what a buyer is willing to pay.

Let me explain why.

Market Value: Buyers Decide It, Not Sellers

A property’s market value is determined by buyers, not by the number you put on the listing. If the list price is too high, buyers won’t even come through the door. They "vote with their feet," and the result is higher Days on Market (DOM). Once your property sits for a while, buyers start to wonder what’s wrong with it.

This leads to the dreaded anti-FOMO (fear of missing out): the longer a property lingers, the less desirable it seems. That perception taints the property and actually lowers the amount buyers are willing to pay.

On the flip side, when the list price is attractive—or even slightly under market value—you create a FOMO-fueled feeding frenzy that can drive the price higher. Multiple buyers competing for your property is a seller’s dream scenario, and it’s how you maximize your sale price.

A Real-Life Example in Redington Shores, Florida:

Take this oversized 2BR/2BA condo directly on the Gulf with stunning views, a pool, fitness room, and all the amenities. The view alone is a perfect 10! But the pricing strategy? Not so much.

• January 2024: Listed at $775,000. Buyers ignored it. After sitting on the market for four months, the seller finally lowered the price to $750,000, but by then, the damage was done. Buyers saw the high DOM and lost interest.
• Later that year: Reduced to $400,000, sparking a silent auction with multiple offers. The property went under contract for $703,000.

Did listing it lower hurt the final sale price? Not at all. In fact, it could have sold for $703,000 six months earlier if it had been priced appropriately after $775,000 proved too high. Instead, waiting wasted time and money—and the property missed a hot moment in the market when inventory was tight and sellers were calling the shots.

The Takeaway

Pricing too high can hurt you, but pricing too low? That’s not a thing. Buyers always pay what a property is worth to them—market value. A lower list price attracts attention, creates competition, and can even result in a higher sale price than you expected.

So, if you’re thinking about selling, trust the data and the market. List strategically, and let the buyers do what they do best: compete for a great property.

Need help pricing your home? Let’s talk—I’ll help you make the most of your property without letting it sit on the market too long. Call or text (727) 496-6112.

*FOMO = Fear of Missing Out