By Eric Berman, REALTOR® | The Eric Berman Team at Compass

TL;DR:

One of the hardest pricing calls a seller faces is whether to price slightly under market value to draw attention or at the top of the range to maximize return. On Long Island, the right answer depends far less on preference and far more on how buyers are actually behaving — the demand, the competition, and the timing in front of the home right now.

What "Under Market" and "Top of the Range" Actually Mean

These two strategies get talked about loosely, so it helps to define them plainly. Pricing slightly under market value means positioning the home at a level designed to attract the widest pool of qualified buyers — deliberately setting the number a touch below what the home might ultimately command, to generate energy. Pricing at the top of the range means aiming for the highest figure buyers have recently paid for comparable homes, on the assumption that demand is strong enough to support it.

Neither is inherently right or wrong. They're tools suited to different conditions, and the effectiveness of either comes down to how buyers are currently responding to similar listings. A strategy that's brilliant in a hot, low-inventory market can misfire in a slow one, and vice versa. Understanding the broader question of whether to price below market value to attract offers lays the groundwork for choosing between these two postures.

When Pricing Slightly Under Market Makes Sense

The under-market approach works best when the goal is to generate early interest and, ideally, competition. It tends to be effective when buyer demand is strong, inventory is limited, the home shows well against competing listings, and there's a real chance of drawing multiple buyers in quickly. In those conditions, a slightly lower price can act as a magnet — pulling in more showings and offers than a top-of-range number would.

The strategic payoff is that early activity can create competitive pressure, and competition among buyers is what protects (and sometimes lifts) a seller's final number. Priced well under market in the right conditions, a home can attract several buyers who bid it back up past where a "top of range" list price would have stalled. This is the same dynamic behind why some homes get multiple offers while similar homes sit.

When Pricing at the Top of the Range Fits

The top-of-range approach makes sense when conditions genuinely support a premium. That's typically when comparable homes are selling quickly, there's limited competition in the home's price bracket, the home offers features buyers strongly value, and demand is steady and predictable. In that environment, buyers may well be willing to pay at the top of what recent sales suggest, especially if the home clearly stands out from the little competition around it.

The important qualifier is that top-of-range pricing relies on the market cooperating. It's a strategy for a position of strength — a distinctive home in a thin, active segment — not a hopeful reach in a crowded one. When the conditions are real, aiming high can capture value that an under-market price would have left on the table; when they aren't, the same number stalls the listing.

The Risks on Each Side

Every pricing approach carries trade-offs, and naming them honestly is what keeps the decision clear-eyed. Pricing under market can create urgency, but if it isn't positioned carefully it can also attract buyers with lower expectations who read the price as an invitation to offer even less. The strategy depends on the competition materializing; if it doesn't, the seller may simply have started low.

Pricing at the top of the range can maximize return when demand supports it, but it reduces showings the moment buyers sense the price is stretched — and fewer showings early is exactly what a seller can't afford. The shared risk underneath both strategies is the same: misalignment with how buyers are actually behaving. Either posture, applied to the wrong conditions, produces a stall. The pricing mistakes that cause homes to sit almost all trace back to that misalignment.

Buyer Psychology and Making the Call With Confidence

Underneath the numbers, buyers compare homes on perceived value, not price in isolation. Their sense of a home is shaped by how it stacks up against active listings, the monthly-payment differences between options, condition and layout, and how long similar homes have been sitting. Reading that psychology is what reveals whether a slightly lower price would spark real momentum or whether buyers are already comfortable paying at the top of the range for a home like this one.

So the decision isn't a guess or a matter of temperament — it's a read on where buyers are most likely to act. A thoughtful choice weighs recent sales for context, the current competition, buyer demand and affordability, and how quickly the seller wants or needs to sell. Those inputs usually point clearly toward one strategy for a given home in a given moment. And because markets shift, the right call can change after listing, which makes early feedback essential. When it helps to work through which posture fits a specific home and market, a quiet, grounded look at where the home stands is a good place to start.

FAQs

Is pricing under market value a risky strategy for sellers?

It can be effective, but only when done strategically in the right conditions. In a market with strong demand and limited inventory, a slightly lower price can spark competition that lifts the final number. In a slower market, though, it can simply mean starting low — which is why it depends on reading the current demand accurately.

Will pricing at the top of the range scare buyers away?

It can, if demand doesn't support it. Buyers who sense a price is stretched often skip the home rather than negotiate, which quietly reduces showings early on. Top-of-range pricing works when comparable homes are moving quickly and competition is thin; evaluating current buyer behavior first is what keeps it from backfiring.

Can pricing under market lead to multiple offers on Long Island?

In the right conditions, yes. When demand is strong and inventory is limited, a slightly under-market price can draw several qualified buyers at once and create competitive pressure. Whether it works depends on the demand and competition in the specific price band, which is worth assessing before committing to the approach.

How quickly will a seller know if the pricing strategy is working?

Early showing activity and feedback usually signal within the first couple of weeks. Strong early interest suggests the price is well-matched to the market; a quiet start suggests it isn't. Reading those early signals objectively is what allows a seller to adjust while the listing still has its freshness.

Should a pricing strategy change if market conditions shift after listing?

Yes. Markets evolve, and a price that fit at launch can drift out of step as conditions or competition change. Responsive pricing — adjusting early and decisively when the signals call for it — protects momentum far better than holding a number the market has moved past. Discussing adjustments early tends to lead to better outcomes.

Let's Talk When You're Ready

Choosing between under-market and top-of-range pricing sounds like a philosophy question, but it's really a practical read on the market in front of a specific home. The same house can call for opposite strategies depending on demand, competition, and timing — which is why the decision rewards evidence over instinct. For a seller weighing which approach fits their home and moment, with no pressure either way, talking it through is often the clearest place to start. The door is open whenever the timing feels right.

By Eric Berman, REALTOR® | The Eric Berman Team at Compass

Eric Berman | Long Island & Queens REALTOR® | Compass
1468 Northern Blvd, Manhasset, NY 11030
(917) 225-8596 | eric@ericbermanteam.com | theericbermanteam.com