One major mistake to steer clear of when selling your house this year is pricing it too high. You might think that setting a higher price allows for negotiation or boosts your profits, but often, it ends up backfiring.

Realtor.com reports that nearly 20% of sellers—about one in five—end up having to lower their asking price to sell their home. You definitely don’t want to find yourself in that situation. Here’s why pricing your home too high can create issues and how you can steer clear of this problem.

Overpricing Pushes Buyers Away

With mortgage rates and home prices as they currently are, buyers are already pushing their budgets to move forward. When they come across a house that’s priced too high, they’re not usually thinking, “I can negotiate.” Instead, they're more inclined to think, “next” and move on from your property altogether. According to an article from the National Association of Realtors (NAR):

““Some sellers are pricing their homes higher than ever just because they can, but this may drive away serious buyers . . .”
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— National Association of Realtors (NAR)

If potential buyers overlook your listing, you'll lose the opportunity to get them in for a showing. That’s not what you want, as fewer showings lead to fewer chances of receiving an offer.

The Longer Your House Sits, the More Skeptical Buyers Will Get

An overpriced house usually stays on the market longer, and that can raise red flags for buyers. The longer it sits, the more they might start to question what's wrong. Is there an issue with the house? Are you hard to communicate with? Even if the only problem is the price, that extended time can create uncertainty. As U.S. News points out:

““. . . 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.”
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— U.S. News

If you reach that stage, you might need to drop your price to attract more buyers. However, reducing the price can backfire—potential buyers might view it as a warning sign, suggesting there might be a problem with the property.

The Key To Finding the Right Price for Your House

The key to steering clear of all these complications? It's straightforward. Partner with a local real estate agent who truly understands the market and will provide you with honest advice on how to price your home.

You really shouldn’t team up with someone who simply nods along to any price you suggest. That’s not the kind of expert who will truly help you achieve the best outcomes.

You need an agent who sets a price based on their knowledge and experience. The best agent will utilize up-to-date information from your local market to help you find a price that stands out, draws in buyers, and ensures you get a solid return. Look for someone who knows the ropes and has a proven track record of success. That’s the kind of agent you want on your side.

Bottom Line

If the price isn’t attractive, it won’t sell. Instead of aiming too high and potentially driving buyers away, consider collaborating with a local agent who understands how to set the right price.

Let’s collaborate to ensure your home is priced effectively, stands out in the market, and sells quickly.