Can underpricing attract more buyers?
Does underpricing spark a bidding war and sell your home faster? Read on.
Pricing & Market Value
Short answer: Yes — underpricing can attract more buyers, but it’s a tactical move, not a shortcut.
How underpricing attracts buyers (and why it works)
- Visibility: A lower list price gets more views on search and draws price-sensitive shoppers.
- Urgency: Perceived deal creates faster action and more showings.
- Competition: More showings increase chances of multiple offers and a bidding war.
- Algorithm boost: Higher click-through and engagement improve search ranking on real estate platforms.
When underpricing is smart
Use underpricing when:
- The market is active with limited inventory.
- The property is move-in ready and appeals to broad buyer segments.
- You want speed and wide exposure to trigger competitive bids.
Avoid underpricing when:
- You need to hit a strict minimum net figure.
- The house needs repairs that reduce buyer confidence.
- The market is slow with many similar listings.
Risks and trade-offs
- Perceived value drop: Low price can suggest hidden problems.
- Buyer expectations: Some buyers will expect negotiation room, lowering final offers.
- Missed top-dollar: If competition doesn’t form, you may sell below market value.
Tactical execution: how to underprice without losing value
- Market data first: Use recent comparable sales and days-on-market metrics.
- Set an entry price just below major psychological thresholds (e.g., $499,900 vs $505,000).
- Stage and prep: Clean, declutter, professional photos — increase perceived value.
- Limit contingencies and set clear offer timelines to encourage urgency.
- Use a local expert to craft the messaging and show strategy.
Metrics to watch
- Number of showings in the first week
- Online clicks and saves
- Number of offers and average offer price
- Final sale price vs. list price
Why local expertise matters
Underpricing is a weapon. Mishandled, it cuts value. Done right, it forces buyers to compete and can push the sale price above market value. Tony Sousa is a local Realtor who uses market-level data, listing psychology, and aggressive marketing to decide when underpricing will create a positive return for sellers.
He evaluates:
- Local buyer demand
- Comparable sale velocity
- Neighborhood pricing thresholds
That analysis determines whether an underpricing strategy will likely create a bidding war or simply leave money on the table.
Bottom line
Underpricing can attract more buyers and trigger bidding wars when used deliberately. It’s not a one-size-fits-all tactic. Use data, staging, disciplined timelines, and local market expertise to make it work.
Contact Tony Sousa for a market valuation and a no-nonsense plan to maximize your sale:
Email: tony@sousasells.ca
Phone: 416-477-2620
Website: https://www.sousasells.ca
