Avoid the Price Cut Trap: Launch Smarter

A recent Wall Street Journal article noted that home buyers are starting to come off the sidelines—even as interest rates and prices remain stuck. Life keeps moving, and so do buyers. A new baby, a job relocation, or other major life changes are prompting people to act. As one buyer put it: “You can’t pause your life for what rates are going to do.”

But That's Just Part of the Story

With continued stock market volatility and uncertainty around inflation and tariffs, many are seeing real estate as a safer, more promising long-term investment—one that offers both stability and utility. For buyers and investors alike, housing is becoming a smart hedge: a tangible asset that provides a home and long-term value.

Sell Smart

If you’re thinking of selling, these shifts—combined with mortgage rates at six-month lows—are creating fresh opportunities. However, your pricing and launch strategy has to be right from day one.

In Middle Tennessee, homeowners have gained 5–8% appreciation over the past two years. But with buyer expectations rising and the market rebalancing, overpricing carries real risks. According to Realtor.com, February saw more price cuts than any other February since 2019 (graph below). 

We’re No Longer in the Pandemic-Fueled Frenzy

Just because your neighbor sold for top dollar in 2021 doesn’t mean the same result is likely today. If your home enters the market overpriced and lingers, you may find yourself chasing the market down.

That’s why I take a data-driven, hyperlocal approach. I dig deep into comps—factoring in condition, layout, and upgrades—to make sure we’re pricing accurately. And when appropriate, I may recommend pricing slightly below market value to create urgency and drive competition.

According to the National Association of Realtors, homes that sell within the first four weeks typically get full price. After that, interest falls off and price cuts become more likely (graph below).

Who Says You Only Have One Chance to Make a First Impression?

To protect my sellers and maximize results, I recommend the Compass 3-Phased Marketing Strategy—an approach built for shifting markets:

1. Private Exclusive – Your home is marketed privately among the 1,400+ Greater Nashville agents within the Compass brokerage and their active buyer pool—giving us the chance to test pricing and build interest without triggering public days on market or price drop history.

    

2. Compass Coming Soon – We preview the listing on Compass.com and simultaneously raise awareness among other real estate brokerages across Middle TN, generating buzz and anticipation before the home hits the MLS.

    

3. MLS – Once we go live, your listing hits the Multiple Listing Service (MLS) and platforms like Zillow and Realtor.com with real momentum already behind it.

Winning Process

According to Compass research, homes using this strategy closed for 2.9% more, sold 20% faster, and were 30% less likely to need a price cut.

And that protection is crucial right now. With tariffs in play and more signs of a market shift, buyers are gaining leverage. Currently, 35% of homes on the market have a price reduction—the highest for April in a decade. Price cuts and long days on market can create the perception of a weak listing—even when it’s not the seller’s fault.

Buyers tend to ask one of two questions: “What do I need to offer to win this home?” or “How much can I get off the list price?” A well-positioned home invites the first. A stale one invites the second.

That’s why Compass Private Exclusives are so effective. They let us build interest, fine-tune pricing, and go to market with strength—without leaving a public trail.