The Dangers of Overpricing Your Home

Setting the right price for your home is one of the most critical factors in achieving a successful sale. In the wake of the sharp rise in home prices during the COVID-19 pandemic, many sellers are still inclined to price their homes at increasingly higher levels. However, we are no longer operating in the same market conditions as we were just a few years ago. Overpricing your home can lead to longer time on the market, fewer offers, and potentially a lower final sale price.

The Risks of Overpricing

1. You may deter serious buyers.
When buyers perceive a home to be significantly overpriced compared to similar properties, they often opt to wait for a price reduction—if they don’t lose interest altogether. I’ve had numerous buyers tell me, “We’ll wait to see if they reduce and maybe take a look then.” Unfortunately, by the time that reduction happens, those same buyers have often moved on. This hesitation can eliminate a pool of motivated buyers who might have otherwise competed early, potentially driving the price up.

2. Your home may take longer to sell.
An extended time on the market can raise red flags for buyers, who may begin to speculate that something is wrong with the home. Additionally, listings that sit too long are more likely to receive lowball offers. This scenario frequently results in homes ultimately selling for less than they would have if priced appropriately from the start.

3. Your home may not appear in search results.
Listings that have been on the market for an extended period often no longer show up at the top of search results, even when they’re a good match. Newer listings are typically prioritized by search algorithms, so older listings can become buried—making them easy for buyers to overlook.
Additionally, if your home’s market value is $200,000 but it’s listed at $225,000, it won’t appear in search results for buyers filtering by price. That means you’re missing out on a large group of qualified buyers who may have been interested had the property been priced correctly from the start.

So, how can you avoid overpricing your home?

There are a couple of effective options for determining your home’s true market value:

• Comparative Market Analysis (CMA):
  A CMA is typically offered by your real estate agent at no cost. It involves evaluating similar homes (or “comps”) in your area that are currently listed or recently sold to determine a competitive price for your property.

• Professional Appraisal:
  You may also choose to hire a licensed appraiser to provide an unbiased valuation. This generally costs between $200–$500, depending on your location and the scope of the report. An appraisal uses a similar methodology to a CMA but offers a more formalized, third-party opinion of value.

Ultimately, the listing price is entirely your decision—but partnering with a knowledgeable real estate professional can help ensure you make the most informed choice possible. As your agent, I’m here to support you every step of the way and help you maximize your return.

If you’d like a complimentary comparative market analysis, simply click the “Contact Me” button under the “About Me” tab at the top of the page. I’d be happy to provide you with a current estimate of your home’s market value.

Happy Selling!