If You’re Serious About Selling Your Home in St. Louis, Price Below Market Estimates

When it comes to selling your home in St. Louis, two distinct types of property listings dominate the market: those that sell quickly and those that languish without much interest. Often, the difference isn’t about the home’s quality or amenities—it’s the price.

If you’re ready to sell your home and attract buyers in today’s competitive market, the key is to price strategically. This often means setting your listing price lower than online value estimates like Zestimates or Redfin Estimates.

Why Pricing Below Online Estimates Works

Setting the right price creates buzz and drives interest. Many buyers rely on tools like Zillow’s Zestimate or Redfin’s Estimate when gauging a home’s value. These tools aren’t perfect—they’re not substitutes for appraisals—but they’re widely used by prospective buyers to evaluate homes quickly.

Even Realtor.com offers its “RealEstimate” feature, which provides three separate value estimates for properties. While these numbers may vary, they provide buyers with a baseline, influencing their perception of a listing’s value.

Think Like a Buyer

A seasoned real estate agent will likely tell you that these estimates aren’t always accurate and may advise against putting too much weight on them. However, what really matters is what buyers see and believe. Many buyers are swayed by these estimates, as they are easy to understand and readily accessible.

For sellers, this means pricing your home slightly below these estimates can make it appear like a deal. People love the idea of getting something “on sale,” and a list price below the Zestimate or Redfin Estimate plays into this psychology.

Real-World Example

In a challenging market with high mortgage rates and rising home prices, a property in Southern California recently went pending within nine days. What stood out was its list price, which was slightly below the Zestimate and Redfin Estimate.

This small adjustment made the home seem like a bargain to buyers. On the flip side, a listing priced above these estimates might deter potential buyers, as they could perceive the seller as unreasonable.

Leverage Key Price Thresholds

Another smart strategy is to list just below significant pricing thresholds. For instance, if a Zestimate values your home at $520,000, pricing it at $499,000 instead of $505,000 achieves two critical goals:

1. It places your home below the Zestimate, making it look like a better value.
2. It captures buyers filtering their search at $500,000 or lower.

Similarly, if your Zestimate is $1,520,000, listing at $1,499,000 could open your property to a broader audience while still making it feel like a deal.

Don’t Worry About Underselling

Some sellers worry that a lower list price will lead to selling their home for less. However, a well-priced home often generates more interest, which can result in multiple offers and even a bidding war. Additionally, serious buyers may offer better terms, making the transaction smoother and faster.

Conversely, starting with a high price can lead to a property sitting on the market for months, eventually requiring price reductions and potentially selling for even less.

Why Some Sellers Resist Lower Prices

It’s not uncommon for sellers to overrule their agent’s pricing advice. Sellers often aim high because every dollar feels significant. However, agents—who earn a small commission percentage—know that pricing a property right from the start usually leads to a quicker, more profitable sale.

Sometimes, sellers are simply testing the waters. These “would-be” sellers might not need to sell and are more inclined to wait for the perfect offer. Unfortunately, this often results in a stale listing with little activity.

Final Thoughts for St. Louis Sellers

As a local mortgage broker and owner of Carlson Mortgage, I’ve seen countless transactions over the years. In my 20+ years as a mortgage loan officer and 15 years running Carlson Mortgage, one thing remains consistent: the importance of strategic pricing. If you’re ready to buy or sell in St. Louis, keep in mind that the right listing price can make all the difference.

For buyers, remember that Carlson Mortgage offers some of the lowest interest rates in Missouri and charges no broker fees. If you’re thinking about purchasing a home, now might be the perfect time to act.

Pricing your home correctly isn’t just about selling quickly—it’s about maximizing value and making the process smoother for everyone involved.

Ready to Secure Your Dream Home in St. Louis?

At Carlson Mortgage, we’re dedicated to helping St. Louis residents navigate the mortgage process and find the perfect loan for their needs. Our experienced mortgage brokers can help you find the perfect loan to fit your needs and budget and will help you make informed decisions about buying a home. Call or text us at (314) 329-7314 or fill out our loan application at www.carlsonstl.com/apply for a purchase or a refinance mortgage, or if you have any general mortgage lending questions.