The short answer: Top dollar comes from pricing that creates competition in the first week, not from pricing high and leaving room to negotiate. The most buyer attention a home will ever get happens right after it hits the market, and buyers search online in price brackets. Overprice your home and you lose that first wave, then often sell for less after price reductions.
Home School Podcast, Episode 2. Liz Sandwick and Tom Sommers of Coldwell Banker Realty explain the pricing psychology that decides whether a Lakeville home sells quickly or sits.
One of the most common things I hear from sellers is, "Let's start high. We can always come down." It sounds safe. In practice, it is one of the most expensive decisions a seller can make.
In Episode 2 of Home School, Tom Sommers and I explained why, and what a pricing strategy that actually gets you top dollar looks like in Lakeville and the south metro.
Why does overpricing kill momentum?
Buyers who are actively looking have seen everything on the market in their range. When a new listing appears, they compare it to all of those homes immediately. If yours is priced above what the market supports, it does not get a second look. Worse, it makes the competing homes look like better deals, and you end up helping your competition sell.
By the time you reduce the price, the most motivated buyers have moved on, and the ones left are asking what is wrong with the house.
Why do the first seven days on the market matter so much?
New listings get a burst of attention. Buyer alerts go out, agents send it to clients who have been waiting, and the first weekend of showings is usually the busiest your home will ever see. When the price is right, that first week can bring multiple buyers at once, and competition is what pushes a price up.
How Lakeville homes were selling in summer 2026
| Median days on market, August | 28 |
| Median percent of original list price received, August | 98.9% |
| Months of supply, mid-September | About 3.4 |
Source: NorthstarMLS data for the city of Lakeville, single family and townhome, traditional sales. Deemed reliable but not guaranteed.
Those are medians, which means half of homes did better. Well-priced homes tend to sell faster and closer to list, while overpriced homes drag the average days on market up and the percent of list price down.
How do buyers search for homes in price brackets online?
Almost every buyer searches with a price filter, and most use round numbers like $400,000, $450,000, or $500,000. A home listed at $505,000 never shows up for a buyer whose search stops at $500,000, even if that buyer would happily pay it for the right house.
Pricing is partly about value and partly about visibility. Where you land relative to those search cutoffs decides which buyers see your home at all.
What is the difference between compelling pricing and underpricing?
Compelling pricing means listing right at, or just under, the value the market data supports, so your home stands out as the best option in its range. Underpricing means listing well below value and hoping a bidding war sorts it out. That can work in the right conditions, but it is a gamble without solid data behind it.
The right choice depends on recent sales, current competition, and how quickly homes in your specific price range are selling, not a rule of thumb.
How does pricing affect appraisal risk?
If your buyer is financing, the home still has to appraise. A price that is well supported by recent sales gives the appraiser what they need. A price that is not supported can lead to a low appraisal, a renegotiation, or a lost buyer, which means you are back on the market with more days on the clock.
Don't become "that house"
Every neighborhood has one: the house that has been for sale for months, with a price cut every few weeks. Buyers notice the days on market and assume something is wrong, even when nothing is. Once a home gets stale, it usually sells for less than it would have if it had been priced right from day one.
The market always tells the truth. The goal is to listen to it before you list, not after.
Serving Lakeville and the Twin Cities south metro
I help sellers and move-up buyers in Lakeville (55044) and across the south metro, including Apple Valley, Farmington, Burnsville, Rosemount, Prior Lake, Savage, and Eagan. For clients moving out of the area, I connect them with top agents across the country who I trust to take the same level of care.
Frequently asked questions about pricing your home
Should I price my Lakeville home high to leave room to negotiate?
Usually not. Overpricing costs you the first week of market activity, when buyer interest is highest, and often leads to price reductions and a lower final sale price. Pricing where recent sales support value gives you the best chance at strong offers and competition.
How long does it take to sell a home in Lakeville, MN?
In August 2026, the median days on market for Lakeville single family and townhome sales was 28 days, based on NorthstarMLS data. Well-priced, well-prepared homes often sell faster than the median, while overpriced homes tend to take longer.
Why do the first seven days on the market matter?
A new listing gets the most attention in its first week, from buyer alerts, agents with waiting clients, and the first weekend of showings. Pricing correctly from the start lets you capture that wave of interest, which is when multiple offers are most likely.
How do price brackets affect online home searches?
Buyers filter their searches by price, usually in round numbers. A home priced just above a common cutoff, like $505,000 instead of $500,000, is hidden from buyers searching up to $500,000, even if they could afford it.
What is the difference between strategic pricing and underpricing?
Strategic pricing lists a home right at or slightly below the value the data supports so it stands out. Underpricing lists well below value and relies on a bidding war. Strategic pricing is built on recent sales and current competition, while underpricing is a bigger gamble.
Can overpricing cause appraisal problems?
Yes. If a buyer is financing, the home must appraise. A price that recent sales do not support can lead to a low appraisal, renegotiation, or a canceled sale, putting the home back on the market with more days on market.
About the hosts
Liz Sandwick, REALTOR®, GRI, e-PRO is a Lakeville-based agent with Coldwell Banker Realty. Licensed since 2011 and living in Lakeville since 2016, she has closed 190+ transactions and focuses on sellers and move-up buyers across Lakeville and the south metro.
Tom Sommers is a REALTOR® with Coldwell Banker Realty serving Lakeville and the surrounding area. You can find every Home School episode on Tom's Home School podcast page and on the Home School YouTube channel.
More from Home School
Previous episode: Episode 1: Surviving Multiple Offers
See every episode on the Home School Podcast page, or subscribe on YouTube.
What should your home be listed at?
Get a pricing strategy built on current Lakeville sales, your competition, and how fast homes in your price range are moving.
Get my home value Call or text 952-491-3685Buying your next home too? Search Lakeville homes for sale.
Liz Sandwick, REALTOR® | Coldwell Banker Realty | 17305 Cedar Ave, Lakeville, MN 55044 | 952-491-3685 | Liz@CBRealty.com
Market data from NorthstarMLS, deemed reliable but not guaranteed. Equal Housing Opportunity.