The Number One Mistake Sellers Are Making: Overpricing Their House

The Number One Mistake Sellers Are Making: Overpricing Their House

In today's housing market, many sellers are making a critical mistake by overpricing their homes. This common error often results in a property lingering on the market without receiving offers. When this happens, sellers may find themselves lowering the asking price to rekindle buyer interest.

Data from Realtor.com shows that the number of homeowners recognizing this issue and reducing their prices is on the rise (see graph below):

If you're considering making a move, it's crucial to understand the risks of overpricing. The best way to avoid this costly mistake is by partnering with a trusted real estate agent who can help you determine the right price. Here's why getting it right matters.

Not Paying Attention To Current Market Conditions

Understanding the current market conditions is essential for accurate pricing. Basing your asking price on pandemic-era trends can lead to missteps, as the market has since stabilized. It's crucial to align your price with today's realities.

Real estate agents keep a close eye on market trends and know how these shifts impact your home's pricing strategy.

Pricing It Based on What You Want To Make (Not What It’s Worth)

Another common mistake is setting the price based on what you hope to earn from the sale, rather than on the current market value. It's easy to look at other homes in your neighborhood selling for high prices and assume yours can do the same. However, you might overlook differences in factors like size, condition, and features. For instance, that other home might be waterfront or have a finished basement, which can significantly impact its 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 knowledgeable agent will understand fair market value in your area, how much your house is worth and how much you might reasonably expect to get for it in the current market.”

A real estate agent will conduct a Comparative Market Analysis (CMA) to ensure your house is compared with similar properties, giving you a precise understanding of its market value and helping you set the right price.

Pricing High to Leave Room for Negotiation

Another common, yet flawed strategy is intentionally pricing your house high to allow room for negotiation. However, this can backfire. An overly high price may deter potential buyers from even considering your home, ultimately turning them away rather than inviting negotiations. As U.S. News Real Estate explains:

“You want to sell your house for top dollar, but be realistic about the value of the property and how buyers will see it. 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.”

An agent can help you set a fair price that attracts buyers and encourages more competitive offers.

Bottom Line

Overpricing your home can have serious consequences. A knowledgeable real estate agent brings an objective perspective, in-depth market knowledge, and a strategic approach to pricing.

Let’s connect so you can avoid making a pricing mistake that’ll cost you.