The Top Mistake Sellers Make: Pricing Their Home Too High

In today's housing market , many sellers are making a critical error : overpricing their homes. This common mistake can cause a property to sit on the market for an extended period without receiving any offers.

Data ?from?Realtor.com ?shows the number of homeowners realizing this mistake and doing a price reduction is climbing (see graph below):

If you're considering selling your home, there are some crucial things you need to know. The best way to avoid costly mistakes is by partnering with a trusted real estate agent who can help you determine the right price. Here's why this is so important.

Ignoring Current Market Conditions

Understanding the current market is essential for accurate pricing . Setting your asking price based on what happened during the pandemic is a mistake, as the market has significantly moderated since then. It's vital to align your price with today's reality.?

Real estate agents stay up-to-date on market trends and understand how these trends should inform your pricing strategy.

Pricing Based on Profit, Not Value

Another common error is pricing your home based on how much you want to make, rather than its true market value. While you might see other homes in your area selling for top dollar, your property may have differences in size, condition, or features that affect its value. For example, a nearby home may be waterfront or have a finished basement, making it more valuable. As Bankrate explains, finding the right price is about hitting the "sweet spot"—an area where a knowledgeable agent's expertise is invaluable. An agent will perform a comparative market analysis (CMA) to ensure your home is accurately priced based on truly comparable properties.

Overpricing for Negotiation Leverage

Some sellers intentionally price their homes high to leave room for negotiation , but this strategy can backfire. A price that's too high can deter potential buyers from even considering your property. Rather than creating space for negotiation, you may end up driving buyers away. U.S. News Real Estate emphasizes that if you overprice your home, you might eventually have to lower the price, but by then, the peak period of activity for your listing will have passed. A real estate agent can help you set a fair price that attracts buyers and encourages competitive offers.

Bottom Line

Overpricing your home can have serious consequences. A knowledgeable real estate agent offers an objective perspective, deep market insights, and a strategic approach to pricing. Connect with a local real estate professional to avoid making a pricing mistake that could cost you.