This “High Tide” Pricing Mistake Is Costing You Listings in 2025

Hey guys, have you ever heard the phrase “a high tide floats all boats?” You probably have.

This concept applies to pricing. In a strong market—like we saw during the COVID years—if you priced a home slightly wrong, it didn’t really matter. The market was so hot that it would cover your mistakes. Even if you were off by 4% or 5%, prices were rising 10%, 15%, even 20% annually.

But that’s not the case today.

Today, we’re in a completely different market. There’s an imbalance: about 500,000 more home sellers than buyers. Prices are flat or even declining in many areas. Zillow and Redfin are both predicting price drops this year—the first in several years.

What’s driving this shift? Interest rates. Once rates come back down and buyers re-enter the market, things will likely shift again. But for now, we're stagnant—or even declining—on price.

So, when you're sitting down with sellers, the pricing conversation becomes crucial. We're no longer in a "high tide" market. In fact, the tide might be going out.

If we get the price wrong today—especially in a falling market—we’re in trouble. That’s why I use a strategy I call “Anchor Point Pricing.”

Here’s how it works.

You sit down with the seller and say:

“Mr. and Mrs. Seller, now we’re at the pricing part of the conversation—and it’s a big one. There’s a big difference between listing your home and actually selling it. A lot of people list their homes, but many don’t sell. Take your neighbor on Johnson Street, for example. That home’s been on the market for three months. You’ve probably driven past it.

It’s had three price reductions—but still no offers. People start to wonder what’s wrong with it.

Now, contrast that with another neighbor on First Street. They sold their home in three days with multiple offers—above asking price, I talked to the listing agent this morning. They picked the best offer and they’ve already moved on to the next chapter of their life.

Two totally different strategies. One seller overpriced, the other priced to market—or even slightly under—and sold fast.”

It all comes down to how we approach strategy and pricing.

When you go through your CMA, sellers are going to try to push the price up. You’ve got to hold the line and guide them through it. Say something like:

“I think that’s pushing the envelope. I’m concerned we’ll end up like the home on Johnson Street—sitting for months, missing that first wave of buyer interest. First impressions matter. We don’t get a second bite at the apple. If we go too high out of the gate, we might miss our window.”

Then offer an alternative:

“What if we take the opposite approach? We price a little more aggressively. That can create a frenzy and attract more buyers.”

And then make it clear:

“It’s your call. You get to decide. But there’s a difference between listing a home and actually getting it sold. What do you want to do?”

Your role is to educate, not dictate.

Walk them through the logic and show them the consequences of overpricing. When you approach it this way, you’ll be surprised at how often sellers come around. They’ll start to understand that strategic pricing is the key to attracting the most buyers—and ultimately selling for the best price.
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