There’s one big mistake you need to avoid when you sell your house this year: setting your price too high. It might seem like overpricing gives you room to negotiate or could really boost your profit, but the reality is, it usually backfires.
In fact, Realtor.com says almost 20% of sellers — that’s one in five — have to reduce their price to get their house sold. And you don’t want to be one of them.
Here’s why starting too high can lead to trouble — and how to avoid it.
Overpricing Pushes Buyers Away
With mortgage rates and home prices where they are right now, buyers are already stretching their budgets to make a move. So when they see a house that’s priced too high, they’re not thinking, “I can negotiate.” They’re more likely to think, “next,” and skip over your house entirely.
An article from the National Association of Realtors (NAR) explains:
“Some sellers are pricing their homes higher than ever just because they can, but this may drive away serious buyers . . .”
And if buyers skip over your listing, you miss the chance to get them through the door. Fewer showings mean fewer opportunities to receive an offer.
The Longer Your House Sits, the More Skeptical Buyers Get
Overpriced homes tend to sit on the market longer. And the longer a house lingers, the more buyers begin to wonder what’s wrong with it. Is there an issue with the property? Are the sellers difficult to work with?
Even if the only problem is the price, time creates 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.”
At that point, lowering the price may be unavoidable — but price reductions can trigger even more skepticism from buyers.
The Key To Finding the Right Price
The best way to avoid these issues is simple: work with a knowledgeable local real estate agent who understands your market and uses real-time data to price your home correctly from the start.
You don’t want an agent who simply agrees with whatever number you suggest. You want one who bases pricing on experience, comparable sales, and buyer behavior — someone who knows how to attract attention without leaving money on the table.
Bottom Line
If the price isn’t compelling, it isn’t selling. Instead of aiming too high and scaring buyers away, partner with a local expert who knows how to price your home right, get it noticed, and get it sold.
