How I Price Homes to Sell, Not Sit (and What Smart Sellers Do Stay Ahead Of The Game)
One of the most common frustrations I hear from homeowners is this:
“Our home didn’t sell, and we don’t understand why.”
The photos were beautiful.
The home was clean.
The agent was responsive.
And yet, the house sat.
In almost every case, the issue wasn’t marketing. It wasn’t timing. It wasn’t the agent’s effort.
It was pricing and positioning.
In this article, I want to walk you through how homes get priced to sit on the market instead of sell, and how I help sellers position their homes to become the clear and obvious choice when buyers are comparing options.
This is the same framework I use during my listing appointments, translated into plain English so you can understand how buyers actually think.
Why Pricing Is Really About Positioning, Not Just a Number
Most sellers believe pricing is about finding the highest number the market will tolerate.
Buyers do not think this way.
Buyers compare homes side by side. They are not emotionally attached. They are not thinking about what you paid, what you remodeled, or what your neighbor sold for last year.
They are asking one simple question:
“Which home gives me the most value for the price?”
Your price determines which buyers see your home, which homes you are compared to, and whether you win or lose those comparisons.
That is why pricing is not about being “right.”
It is about being strategically positioned.
Price Bracketing: How Buyers Actually Search for Homes
Let’s start with a concept most sellers have never had explained to them: price bracketing.
Buyers do not search for homes using odd or highly specific numbers. They search in clean, rounded price ranges.
For example:
- $700,000 to $800,000
- $750,000 to $850,000
- $800,000 to $900,000
They are not typing in $812,367.
This matters because the price you choose determines how many buyer pools you appear in.
How Homes Get Priced to Sit
Many homes are priced at numbers that only show up in one buyer bracket.
That limits exposure.
If your home only appears to buyers searching in one narrow range, you are immediately shrinking demand. Fewer buyers means less competition. Less competition means weaker offers.
That is how homes quietly slide into “why hasn’t this sold yet?” territory.
How I Price Homes for Maximum Exposure
When priced correctly, a home can appear in two buyer brackets instead of one.
That means:
- More buyers see it
- More comparisons happen in your favor
- More urgency is created early
This is not about underpricing.
It is about understanding how buyers shop.
Understanding the Total Adressable Market (TAM)
Once price brackets are identified, the next step is understanding your Total Adressable Market, or TAM.
This is the total pool of buyers actively searching within the price ranges your home can realistically compete in.
TAM answers two critical questions:
- How many homes are buyers choosing from?
- How many buyers are actively competing for those homes?
Pricing without understanding TAM is guesswork.
Supply and Demand: Where Sellers Win or Lose
Let’s break this down simply.
Supply
Supply is how many homes are available in each price bracket.
As prices increase, supply typically decreases. There are usually fewer homes available at higher price points.
Demand
Demand is how many buyers are actively writing offers or going under contract in each bracket.
Sometimes demand peaks in unexpected ranges. This is where opportunity lives.
The Sweet Spot
As a seller, you want to be positioned where:
- Supply is low
- Demand is high
That is where buyers feel pressure.
That is where multiple offers happen.
That is where sellers gain leverage.
Homes priced outside this zone often sit, even if they are beautiful.
Why Most Agents Do Not Show This to Sellers
This part surprises many homeowners.
Most agents focus on recent sales and suggest a price based on averages. What they often skip is explaining how buyers compare homes in real time.
When sellers are not shown supply and demand dynamics:
- They overestimate buyer tolerance
- They underestimate competition
- They assume time will fix pricing mistakes
Time does not fix pricing mistakes.
Time usually makes them worse.
The Buyer Comparison Exercise: Seeing Your Home Through Buyer Eyes
One of the most important exercises I walk sellers through is learning how buyers actually make decisions.
Buyers compare:
- Features
- Benefits
- Condition
- Layout
- Price
Always in that order.
More Features, Higher Price
If a home has more features and is priced higher, buyers expect that.
Same Features, Same Price
That becomes a fair comparison.
Same Features, Lower Price
That becomes the obvious choice.
Fewer Features, Higher Price
That home gets eliminated quickly.
This is exactly how buyers evaluate listings, even if they cannot articulate it.
Your price determines whether your home feels like:
- A great value
- A reasonable option
- Or an easy rejection
Active Competition Analysis: Why Buyers Decide in Seconds
Buyers do not analyze one home in isolation. They compare active listings.
When buyers tour multiple homes, they subconsciously rank them.
If your home is priced:
- Higher than better homes, it loses
- The same as better homes, it loses
- Lower than better homes, it competes
- Higher than worse homes, it still wins
This is why pricing must be anchored to current competition, not just past sales.
What Buyers Are Willing to Pay (and What They Are Not)
Closed sales tell us what buyers were willing to pay.
Active listings that are sitting tell us what buyers rejected.
Both are equally important.
When a home sits beyond the average days on market:
- The market has spoken
- The price was too high for the features offered
- Buyers moved on
Ignoring this data leads to pricing homes where buyers have already said “no.”
Why Sitting on the Market Makes Offers Worse, Not Better
There is a common belief that starting high leaves room to negotiate.
In reality:
- The strongest buyers act early
- The best offers come when a home feels fresh
- The longer a home sits, the more leverage shifts to buyers
Price reductions rarely recreate first-week urgency.
They usually signal:
- Something is wrong
- The seller may be inflexible
- There may be hidden issues
That is why pricing correctly from day one matters so much.
Getting the Seller to Own the Price Decision
After reviewing:
- Buyer behavior
- Price brackets
- Supply and demand
- Active competition
- Sold homes
- Rejected pricing
A clear range usually emerges.
The final decision is not about chasing the highest number.
It is about choosing the number that:
- Captures the most buyers
- Creates competition
- Positions the home as the best value
- Maximizes the chance of landing at the top of the range
That is how homes sell quickly and for strong prices.
The Bottom Line: Homes Sit Because They Are Positioned Wrong
Homes do not sit because sellers are greedy.
They sit because sellers are not shown how buyers think.
When pricing is done strategically:
- Buyers compete
- Offers improve
- Sellers gain control
When pricing is done emotionally or generically:
- Homes sit
- Buyers hesitate
- Sellers chase the market down
If you are considering selling and want a pricing strategy based on buyer psychology, data, and real competition, not guesswork, I am happy to walk you through this process step by step.
The goal is not just to sell your home.
The goal is to make it the obvious choice.
To find out what your home may be worth in today’s market, enter the address below.
How Much Is Your Puget Sound Home Really Worth?
Fill out the short form below to get a FREE 100% Accurate Home Value Report for your Puget Sound house with up to date nearby “sold” data and our recommendation on the trend of home values in your neighborhood.