Momentum Pricing: How to Create a "Pricing Vacuum"

Momentum Pricing: How to Create a "Pricing Vacuum"

November 27, 2025

The single costliest mistake in Los Angeles real estate is trusting the "Zestimate."

An automated valuation model (AVM) is a 30-day-old guess based on averages. It knows nothing about your home's story. It doesn't know about the $50,000 kitchen renovation you just finished, the view from your master bedroom, or the specific feeling of your backyard at sunset.

Most importantly, algorithms don't understand Market Velocity.

When you hire a "Standard Agent," they usually look at the last 3 sales in your neighborhood and say, "The average is $950k, let's list at $950k." That is Reactive Pricing. It looks backward.

As your Marketing Director, I use Predictive Pricing. I look at where the market is going.

The 3 Pricing Strategies

When we launch your home, we have three options. Each produces a different result.

1. "Aspiring" Price (Above Market)

This is the "Needle in a Haystack" strategy. You list 10% above the comps because "we can always come down."

  • The Result: The home sits. The "Fresh Listing" buzz wears off in 48 hours. Buyers see it sitting for 14, 21, 30 days and assume something is wrong.
  • The Cost: You eventually slash the price, usually selling for less than market value because the listing is now "stale."

2. Market Price (Fair Value)

You list exactly where the comps suggest.

  • The Result: You get showings. You might get an offer or two. You sell the home for a fair price in 30-45 days.
  • The Verdict: Safe, but boring. You left money on the table.

3. Momentum Pricing (The Playbook Way)

We use data to find the "Pricing Vacuum." We price slightly below the psychological friction point to open the floodgates.

Example: If the fair value is $1,025,000, we might list at **$989,000**.

Why? Because we aren't looking for one buyer. We are looking for twenty.

By entering the market at a compelling price point, we create a Vacuum.

  • Visibility: We appear in search filters for buyers capped at $1M (who wouldn't have seen us at $1.025M).
  • Psychology: Buyers perceive "Value." They get excited. They tell their friends.
  • Competition: Suddenly, the open house is packed. Buyers see other buyers. The "Social Proof" kicks in. FOMO (Fear Of Missing Out) drives them to write their highest and best offer immediately.

The Result of Momentum

In my recent case studies, Momentum Pricing doesn't lead to a lower sales price. It consistently drives the final price 5-10% higher than if we had listed at "Market Value."

You create a bidding war. You dictate the terms. You close faster.

This is the difference between "Selling a House" and "Executing a Strategy."

Want to see the math?