Most people have a feeling for how much their home is worth. That number often comes from an online estimate, mixed with a few personal tweaks based on upgrades or repairs they’ve made over the years. Sometimes it’s tied to what they want or need to get in order for a move to make sense. Other times, it’s just a gut feeling based on what other homes nearby have sold for lately.
So when a real estate agent suggests listing it for less than that number, it’s not exactly advice most homeowners are thrilled to hear.
After all, when you sell your home, the goal is usually pretty simple: get the most money possible, and do it as quickly and easily as possible. But asking too little can feel like a guaranteed way to lose money—and that can make sellers question whether their agent is more focused on the quick and easy part than on actually getting top dollar.
This is why many homeowners go in the opposite direction and decide to list their home for more than what was recommended… at least to start.
Some Sellers Would Rather Walk Away Than Lower Their Price…
Overpricing is often a one-way ticket to getting no offers. Not even low ones. And eventually, that leads to a tough decision: reduce the price or keep sitting on the market, watching the days tick by while buyer interest fades.
While sellers may see some initial buyer activity, that momentum disappears fast (like within a couple of weeks), and a listing quickly starts to feel stale. Buyers begin to wonder what’s wrong with the house. Why hasn’t it sold? Why hasn’t the price dropped yet? And when a price cut does finally come, it often feels like a red flag instead of a fresh opportunity.
Ironically, trying to avoid leaving money on the table often leads to getting less than if the home had just been priced more competitively from the start.
And in some cases, they don’t drop the price at all… they just give up.
Lately, more and more homeowners are choosing to pull their listings off the market entirely rather than reduce their price. In fact, delistings have jumped sharply this year. According to recent data, the number of homes removed from the market without selling is up more than 35% compared to earlier this year—and nearly 50% higher than this time last year.
For some sellers, the idea of accepting less than their hoped-for number just isn’t on the table. They’d rather wait—or walk away from the process altogether—than adjust to what buyers in today’s market are actually willing to pay.
…While Others Are Listing Their House for a Single Dollar
But not everyone has the luxury of waiting. Some sellers need to sell—and fast. And that’s leading to a growing trend on the opposite end of the spectrum: listing homes for dramatically less than market value. In fact, some are even listing for $1.
Yes, one dollar.
A recent report from Realtor.com noted a rise in $1 home listings—not just for distressed properties or teardowns, but often for desirable homes with appealing features. The logic? Listing ultra-low will create a frenzy of interest, bring in a flurry of offers, and allow the market to bid the price up to its true value.
It’s the extreme version of a long-standing real estate strategy: price slightly below market value to drive competition. But this trend takes it to the max—testing the theory that you can never underprice a home, only overprice it.
While it may work in certain scenarios, there are definite downsides to this approach:
- It can send the wrong signal. Pricing at $1 (or any deeply under-market number) might suggest desperation, encouraging lowball offers and bargain hunters.
- It can attract the wrong buyers. Some buyers drawn in by the low list price may not be serious or financially qualified, leading to wasted time or deals that fall through.
- It can turn buyers off. A too-low list price can feel like a bait-and-switch. Some buyers may be turned off by the lack of clarity or feel misled when the actual price becomes apparent.
- It could raise legal or ethical concerns. Agents are expected to price homes responsibly and not misrepresent value. In some areas, pricing far below market value without clear intent to sell at that price may violate advertising standards—or at least frustrate buyer agents and the public.
- It might not work at all. If demand is low, a dramatic underpricing strategy may still fall flat, leaving a seller with disappointing offers and no competitive bidding to drive the price up.
You’re Better off Just Pricing Your House Accurately
There’s no need to default to either extreme. A well-priced home, based on a solid comparative market analysis (CMA) and local expertise, remains the best bet in nearly every market.
In many situations, strategically pricing a home slightly under market value will generate more interest and potentially stronger offers. But that’s a very different tactic from listing far below value with the hope that buyers will do all the work of pricing your home for you.
But every market is different. So is every home. And most importantly, so is every seller’s situation.
That’s why it’s critical to trust the expertise of a knowledgeable local agent. Their pricing advice isn’t based on guesswork or wishful thinking—it’s backed by real-time data, comparable sales, and an understanding of buyer behavior in your area.
If you genuinely want to sell, lean on your agent’s guidance to find a price point that’s competitive, compelling, and realistic. It doesn’t need to be rock bottom. It just needs to be right for the current market conditions—and for your ultimate goals.
And if your agent’s recommended price doesn’t line up with what you’re willing to accept, it might be better to wait. Repeated price reductions or failed listings can leave a digital footprint that lingers in future searches—potentially hurting your chances down the road when you’re truly ready to sell.
The Takeaway:
Pricing a home too high is a very common mistake for sellers, which can result in having to lower your price until it appeals to buyers. But rather than reducing their price, many current homeowners are just taking their house off the market altogether. On the other hand, some sellers are pricing their home for $1, hoping to spark a bidding war.
The best strategy lies somewhere in between—balanced, informed, and tailored to your specific situation. For most sellers, slightly underpricing can be an effective way to generate interest and maximize results. But above all, success starts with trusting a seasoned local agent who knows how to position your home for the best possible outcome.
