Avoid This Common Pricing Mistake When Selling Your Home

When selling your home, one of your most important decisions is setting the right price. While it may be tempting to price your house on the higher side to leave room for negotiation or to maximize your profit, data shows that this strategy often backfires.

According to Realtor.com, nearly 20% of sellers — about one in five — have to reduce their asking price to attract buyers. If you want to avoid falling into that category, it’s essential to understand why overpricing can be a costly mistake and how to approach pricing more strategically.

Overpricing Can Deter Buyers

In today’s housing market, where both mortgage rates and home prices are significant considerations, buyers are often working within tight budgets. When they encounter a home that’s priced above market value, they’re more likely to move on to the next listing rather than consider negotiating.

As the National Association of Realtors (NAR) explains:

“Some sellers are pricing their homes higher than ever just because they can, but this may drive away serious buyers . . .”

If buyers skip over your listing, you’re missing out on valuable opportunities to bring prospective buyers through the door. Fewer showings directly translate to fewer offers, making it harder to sell your home quickly and at a favorable price.

Prolonged Market Time Can Raise Buyer Doubts

Another challenge with overpricing is the increased time your home may spend on the market. A property that lingers too long can raise red flags for buyers, leading them to question whether there’s something fundamentally wrong with the home or the sale process.

Even if the only issue is the price, prolonged market time can create doubt. U.S. News highlights this concern:

“. . . setting an unrealistically high price with the idea that you can come down later doesn’t work in real estate . . . A home that’s overpriced in the beginning tends to stay on the market longer, even after the price is cut, because buyers think there must be something wrong with it.”

When you eventually lower the price to generate interest, it could bring additional challenges. Price reductions might give the impression that the property isn’t as desirable as initially advertised, further complicating the sale process.

The Secret to Pricing Your Home Strategically

The good news is that avoiding these pitfalls is entirely possible with the right approach. The key is partnering with a local real estate agent who understands your market and can provide expert advice on pricing your home competitively.

The ideal agent will use real-time market data to recommend a price that aligns with current buyer expectations while still allowing you to achieve a strong return. This data-driven approach ensures your home attracts attention, generates interest, and ultimately sells for a price you’re happy with.

Choose an agent who prioritizes honesty and expertise over simply agreeing with a number you propose. Their guidance will be invaluable in helping you position your home effectively in the marketplace, maximizing its appeal and your chances of a successful sale.

Bottom Line

If your home’s price isn’t compelling, it’s unlikely to sell quickly. Rather than risking a stagnant listing by overpricing, work with a knowledgeable local agent who can help you set the perfect price from the start.

Connect with a trusted real estate professional today to ensure your home hits the market competitively, attracts buyers, and sells for the best possible return.