The #1 Pricing Mistake That Costs Sellers Thousands

Quick Take
Most LA sellers unintentionally limit what buyers are willing to pay - simply by naming a number. This blog unpacks why even a vague “target price” can kill your momentum and outlines a smarter way to let the market drive demand and pricing power.

Table of Contents

• Why Pricing Strategy Matters More Than Ever
• The Moment You Mention a Number, You Lose Leverage
• Let the Market Compete—Not Negotiate
• How to Handle the “What Are You Hoping For?” Question
• Final Thoughts: Stop Setting Your Own Ceiling
• FAQs
• Call to Action

Why Pricing Strategy Matters More Than Ever

In a competitive market like Los Angeles, most sellers understand the value of pricing strategically to attract attention. The problem is what happens after the listing goes live - when well-meaning agents and curious buyers start fishing for expectations.

The trap? Sellers feel the need to “guide” buyers toward a target price.

This seemingly harmless move often backfires - and it’s costing sellers thousands.

The Moment You Mention a Number, You Lose Leverage

Let’s say your home is listed at $1,999,000. Deep down, you’re hoping for $2.5M. A buyer’s agent calls and asks, “Where do you think this will land?”

You say something like, “We’re expecting around $2.5M.”

What you’ve just done is cap the auction before it starts. Here's how it plays out:

• Buyer 1 hears $2.5M and walks away - convinced it’s out of budget.
• Buyer 2 offers $2.5M - but might’ve stretched to $2.6M if the competition pushed them.
• Buyer 3, who never heard a number, might’ve gone even higher - driven by emotion, urgency, and the desire to win.

By naming a price, you’ve anchored expectations. You’ve shifted buyers from competing with each other to negotiating against you.

Let the Market Compete - Not Negotiate

In a real auction, the auctioneer never reveals the seller’s target. Why? Because the minute bidders know the goal, they stop bidding above it.

The same applies in real estate.

The right buyers will pay more than you expected - but only if they believe someone else might beat them to it.

That’s the essence of price discovery: it’s not about what you think your home is worth - it’s about how badly buyers want it once they’re emotionally invested.

How to Handle the “What Are You Hoping For?” Question

Agents ask this all the time, and it’s tempting to throw out a number.

Don’t.

Instead, say:
“We’ve had a lot of interest and expect multiple offers. I’d recommend your buyer come in strong.”

That’s it. No range. No clues. No ceiling.

By refusing to set the price in advance, you allow momentum and competition to do what logic can’t: create urgency, emotional investment, and ultimately, higher offers.

Final Thoughts: Stop Setting Your Own Ceiling

The biggest pricing mistake sellers make isn’t listing too low or too high - it’s accidentally signaling their ceiling to buyers who would’ve offered more.

Pricing is a launchpad, not a finish line.

Don’t guide the market. Let it guide you.

If you’re considering selling - or just want to run a scenario - I’m here to help you map out the right strategy, based on your timeline, goals, and equity position.

FAQs

How do I create a bidding war when selling my home?

Start with an attractive price to spark interest. Then avoid sharing your “target” number - let the market set the value through competition.

Why do buyers stop bidding when they hear the seller’s expectation?

Once a number is shared, buyers aim to hit it - not exceed it. Emotion and fear of loss drive price - not logic or fairness.

Should I list high just to leave room for negotiation?

Not in this market. Overpricing kills momentum. The better strategy is to price to attract - and then let demand push the number up.

What should I say when an agent asks, “What are you hoping for?”

Keep it vague. Say you expect strong interest and recommend a competitive offer. Avoid anchoring with any specific price.

Is this approach risky in a slow market?

Not if you’ve priced correctly and marketed well. Even in slower markets, the principle holds: don’t negotiate against yourself.

What’s the role of a good agent in price discovery?

A good agent protects your upside. They’ll manage momentum, control information flow, and help you extract maximum value without overplaying your hand.

Call to Action

Curious what your home might attract - without setting a ceiling?

Book a 20-minute strategy call . We’ll walk through recent comps, review buyer behavior in your submarket, and map a pricing plan that leaves no money on the table.