Austin Klar argues that underpricing a home increases visibility on Zillow and Redfin's price filters, where buyers search first. A slightly underpriced listing gets offers you can negotiate, while overpricing often means no offers at all.
There's no such thing as underpricing your home. When you're thinking about how to price a home, the discussion is as much about what the true value of the home is based on where the market is as it is about how buyers are going to be searching for and looking at your home when they're searching online on Zillow and Redfin and setting all these filters based on price. You wanna make sure that your home is gonna show up in that feed. You also need to be looking at how other homes that are similar to yours are priced on the market. If they've priced it low to generate a lot of activity, if you come on a little bit higher, even if justified based on the data, you're less likely to get activity while those other ones are on the market. The reality is in this market with Buyers as picky as they are and the market as tough as it is, if you slightly overprice your home, it's not going to sell. But if you underprice it, you're at least in a situation where you're more likely to get offers that you can counter versus a situation where you get no offers at all. Mm-hmm.
