When it comes to selling your home, one of the biggest mistakes you can make is overpricing it. While it might seem tempting to list your property at a higher price to leave room for negotiation or to boost potential profit, the reality is that overpricing can do more harm than good.
According to Realtor.com, nearly 20% of home sellers — that’s one in five — end up reducing their price to attract buyers. Avoid becoming part of that statistic by understanding why setting the right price from the start is crucial.
Overpricing Pushes Buyers Away
With today’s mortgage rates and home prices, buyers are already stretching their budgets. When they come across an overpriced home, they’re unlikely to think, “I can negotiate.” Instead, they’ll likely move on to more reasonably priced options. As the National Association of Realtors (NAR) points out:
“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 potential showings, and fewer showings mean fewer chances of receiving an offer.
The Longer Your Home Sits, the More Doubt Grows
An overpriced home often lingers on the market, and the longer it sits, the more skeptical buyers become. They might start wondering if there’s a hidden issue with the property or if you’re a difficult seller. Even if the only problem is the price, the prolonged time on the market creates unnecessary doubt. As U.S. News explains:
“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.”
Eventually, you’ll likely need to lower the price to spark interest. However, price reductions can raise red flags for buyers, making them wonder if there’s a deeper issue with the home.
Every Minute Homes Are Selling – Literally
If you’re hesitant to list your home because you think buyers aren’t out there, here’s some perspective. The market isn’t at a standstill. According to the National Association of Realtors (NAR), roughly 4.15 million homes were sold last year, and expectations are that number will rise in 2025. Even if we match last year’s pace, that translates to:
4.15 million homes ÷ 365 days = 11,370 homes sold per day
11,370 homes ÷ 24 hours = 474 homes sold per hour
474 homes ÷ 60 minutes = nearly 8 homes sold every minute
Think about that—just in the time it took to read this, 8 homes were sold. With the right pricing strategy, yours could be next.
How to Price Your Home Correctly
The best way to avoid these pitfalls is to work with a local real estate expert who knows the ins and outs of your market. An experienced agent will provide honest feedback and use real-time data to recommend a competitive price that attracts buyers and maximizes your return.
Avoid partnering with someone who simply agrees with any price you suggest. You need a professional who’s been through this process successfully and knows how to price your home strategically for the best results.
Bottom Line
Over 11,000 homes sell every day, and yours could be one of them. Avoid the trap of overpricing by working with a knowledgeable local agent who can guide you through pricing it right the first time. Let’s team up to ensure your home hits the market with the right price, stands out to buyers, and gets sold quickly.
If you’re ready to sell your home in Philadelphia, PA, contact me today to get started on the right path!
