In today’s housing market, many sellers are falling into a costly trap—overpricing their homes. When a house is priced too high, it often sits on the market without any offers, eventually leading to a price drop to rekindle buyer interest. According to Realtor.com, the number of homeowners reducing their prices is on the rise (see graph below):
If you’re planning to sell, here’s what you need to know to avoid this common mistake:
Ignoring Current Market Conditions
The housing market has shifted since the pandemic, and pricing your home based on old data will hurt your chances. It’s crucial to set your price according to today’s market. A trusted real estate agent will help you understand the latest trends and price your home accurately.
Pricing Based on What You Want, Not Market Value
It’s easy to assume your home will sell for top dollar just because others in your neighborhood have. But differences in size, condition, or features (like a waterfront view or a finished basement) can impact value. As Bankrate explains:
“How do you find that sweet spot of pricing for profit but not overpricing? The expertise of your agent can be truly valuable here.”
A skilled agent will perform a comparative market analysis (CMA) to ensure your home is priced fairly and competitively.
Setting a High Price for Negotiation Leverage
Pricing your home too high with the expectation of negotiating down is another misguided strategy. This can scare off potential buyers before they even consider your property. U.S. News Real Estate notes:
“If you’ve overpriced your home, chances are you’ll eventually need to lower the number, but the peak period of activity that a new listing experiences is already gone.”
Your agent will help you set a fair price to attract buyers from the start, often leading to more competitive offers.
Bottom Line
Overpricing your home can lead to longer time on the market, fewer offers, and missed opportunities. Working with a knowledgeable real estate agent ensures you get expert guidance, market insights, and a smart pricing strategy.
Let’s connect so you can avoid costly pricing mistakes and sell your home successfully!