One of the most common things I hear from homeowners is:

"Let's price it high. Buyers can always make us an offer."

On the surface, it seems logical.

After all, if a buyer loves the home, why wouldn't they simply negotiate?

After more than 35 years, over 1,000 homes sold, and more than $1 billion in career sales, I've learned that buyers usually don't behave that way.

In fact, this may be one of the biggest pricing misconceptions I encounter.

Buyers Don't Want to Get Off on the Wrong Foot

When a home is priced significantly above what buyers believe it's worth, most buyers don't write an offer.

They wait.

Why?

Because they don't want to insult the seller.

They assume a substantially lower offer will be rejected immediately, so instead of negotiating, they simply move on to the next property while continuing to watch yours.

That means a home that might have attracted strong early interest quietly loses momentum.

The seller believes buyers aren't interested.

The buyers are actually waiting.

The First Buyers Are Often the Best Buyers

One lesson I've learned over the years is that the first buyers who tour a well-marketed home are often the buyers most likely to purchase it.

They've been watching the market.

They're ready.

They're qualified.

They're excited.

If the home is priced appropriately, those buyers compete.

If the home is overpriced, they don't argue.

They wait.

Sometimes they wait three weeks.

Sometimes three months.

Sometimes even longer.

By the time the price reaches what they considered fair in the beginning, the home may have accumulated months on the market.

Now buyers begin asking a different question:

"Why hasn't this home sold?"

Instead of:

"How quickly do I need to act?"

That subtle shift changes the entire negotiation.

A Real Example

Not long ago, I represented a seller whose initial instinct was to price significantly higher than I recommended.

Rather than simply disagreeing, we quietly exposed the property to qualified buyers before bringing it to market.

Their response was consistent.

The price was too high.

At the same time, I recommended several improvements before listing:

• Removing tenants
• Fresh paint
• Professional cleaning
• Luxury staging
• Professional photography and video

The seller trusted the process.

Instead of chasing the highest possible asking price, we focused on presenting the home beautifully and pricing it where buyers would become excited.

We listed aggressively.

Then we waited a week.

Not because the home wasn't receiving interest.

Because I wanted every qualified buyer to have the opportunity to see it.

During that week, I stayed in close contact with every interested buyer's agent.

Keeping buyers engaged is just as important as attracting them.

By the end of the week, multiple buyers competed.

The result?

The home sold for approximately $3.4 million—$400,000 over our asking price - and very close to the value we believed the market would ultimately establish.

The asking price created competition.

The competition created the final price.

The Market Determines Value

One of the hardest concepts for sellers to accept is this:

Your asking price does not determine your home's value.

The market does.

Pricing strategically is not about leaving money on the table.

It's about creating the conditions where buyers compete for your home.

Competition—not optimism—is what often produces exceptional results.

Pricing High Can Cost More Than Pricing Right

Buyers have access to extraordinary information.

They study comparable sales.

They monitor price changes.

They know how long a property has been on the market.

If they believe a home is overpriced, most won't negotiate immediately.

They simply wait.

By the time the price reflects market value, the excitement surrounding the property has often faded.

The home hasn't necessarily become less desirable.

It has simply lost its momentum.

Suzanne's Advice

If there's one lesson I've learned after decades representing buyers and sellers throughout Palos Verdes and the South Bay, it's this:

Price your home to create competition—not conversation.

Because buyers rarely compete against an asking price.

They compete against each other.

And that's where exceptional results are created.

Frequently Asked Questions

Should I price my home high to leave room for negotiation?

In most cases, no. Buyers often wait rather than submit an offer they believe will be rejected. A realistic pricing strategy usually creates more activity and stronger negotiations.

Why don't buyers just make a lower offer?

Many buyers don't want to offend the seller or waste time pursuing a home they believe is significantly overpriced. Instead, they continue watching the property until they feel the asking price reflects market value.

What is the most important time after listing a home?

The first two weeks are often the most important. Newly listed homes receive the greatest attention from qualified buyers who have been actively searching and waiting for the right opportunity.

Does pricing lower mean I'll sell for less?

Not necessarily. A strategic price can create competition among buyers, and competition often leads to stronger offers than an inflated asking price.

If you're thinking about selling your home in Palos Verdes, Rolling Hills, Rancho Palos Verdes, Palos Verdes Estates, Hermosa Beach, Manhattan Beach, or anywhere in the South Bay, I'd be happy to share a pricing strategy designed to maximize your home's value while attracting serious buyers from day one.

Suzanne Dyer
Strand Hill | Forbes Global Properties