In today’s housing market, a lot of sellers are making a significant mistake by pricing their homes too high. This common misstep can result in a house lingering on the market without any offers. When that happens, homeowners often find themselves needing to lower their asking price to attract potential buyers again.

Data from Realtor.com indicates that more homeowners are recognizing the mistake of overpricing their homes and are opting for price reductions. You can see this trend reflected in the graph below.

If you’re considering making a move on your own, there's some important information you should keep in mind. To steer clear of expensive missteps, teaming up with a reliable real estate agent can help you determine the right price for your property. Let’s explore the potential consequences of going it alone.

Not Paying Attention To Current Market Conditions

Understanding the current market conditions is essential for setting the right price. Using pandemic-era trends to determine your asking price might not be the best approach anymore. The market has changed significantly, so it’s wiser to base your price on what’s happening today.

Real estate agents keep themselves informed about market trends and understand how these trends affect the pricing strategy for your home.

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

Pricing your home based on how much you hope to make rather than its actual market value is a common mistake. Just because homes in your neighborhood are selling for a high price doesn't mean yours can too. You need to take into account factors like size, condition, and specific features. For instance, if another house is on the waterfront or has a finished basement, that could significantly impact its value compared to yours. In short, it's essential to understand these differences when setting your price.

““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.”
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— Bankrate

An agent will perform a comparative market analysis (CMA) to ensure your home is evaluated alongside similar properties, helping to determine an accurate price.

Pricing High to Leave Room for Negotiation

Pricing your house high with the idea of leaving room for negotiation is a common but often flawed tactic. While it might seem like a good strategy, it can actually work against you. If your price is set too high, many potential buyers may not even take a look at your home. Instead of creating space for negotiation, you could end up pushing buyers away.

““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.”
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— U.S. News Real Estate

An agent can assist you in determining a reasonable price that not only draws in buyers but also fosters more competitive offers.

Bottom Line

Overpricing your home can lead to significant issues. A skilled real estate agent offers an unbiased viewpoint, extensive market insights, and a strategic method for setting the right price.

Let’s chat to help you steer clear of any pricing mistakes that could end up costing you.