Ask Phyllis: a blog series of frequently asked real estate questions.
Can’t predict the final selling price
Dear Phyllis,
I truly appreciate your real estate wisdom. We are planning to sell, and recently met with the Realtor who sold us our home more than ten years ago. He suggested an aggressive list price and gave a wide estimated sale range—over $100,000. That gave me pause. Shouldn’t he be able to better predict the final price? Is this a red flag?
MK
Thank you for your kind words and for your readership. I understand your concern, but a wide range is not necessarily a red flag. In fact, it often reflects the reality of today’s market.
Even after more than thirty years of selling homes in the Foothill communities, I cannot always pinpoint the final sale price. When a home is priced aggressively, the goal is to create strong demand. That demand can push the price well beyond expectations, especially when multiple buyers compete. Because of this, the final number can vary widely.
I prefer to price strategically and let the market respond. I also believe in under-promising and overdelivering. For example, I recently listed a home at $1,650,000 and advised the seller to expect selling between $1,750,000 and $1,800,000. We ultimately sold above $1.9 million. Most offers clustered in that range, but a few standout buyers drove the final price higher.
That said, there is another approach. Some agents recommend a higher list price to secure the listing, then reduce the price later if the home does not sell. This strategy often backfires. In our local real estate market, homes that sit for more than two weeks can lose momentum and appear stale. As a result, they may sell for less than they would have with a stronger initial pricing strategy. This tends to apply less to luxury real estate, where the buyer pool is smaller, and timelines can be longer.
Your Realtor’s reluctance to predict the exact selling price reflects honesty, not uncertainty. A wide range often shows a realistic view of market variables. What matters most is the pricing strategy and the ability to build strong demand early in the listing period.
I hope this clarifies the pricing strategy for you, and I wish you a successful sale.
