There is 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 is one in five — have to reduce their price to get their house sold. And you don’t want to be one of them. Here is 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. They may not even see your house when searching online as they may set their pricing parameters below your listing price and your house won't even make their search.
If they do broaden their search to see what is available, when they see a house that is priced too high, they are not thinking, “I can negotiate.” They are 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 they skip over your listing, you will miss out on the chance to get them through the door. That is the last thing you want because fewer showings mean fewer chances to receive an offer.
The Longer Your House Sits, the More Skeptical Buyers Will Get
Here is another issue. An overpriced house tends to sit on the market longer. And the longer a house lingers, the more buyers start to wonder what is wrong with it. Is there a problem with the house itself? Are you difficult to work with? Even if the only issue is the price, that extra time creates doubt. As U.S. News says:
“. . . 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, you will have no choice but to lower your price to drum up interest. But that price reduction comes with its own downside: buyers may see it as another red flag, that there is an issue with the house.
The Key To Finding the Right Price for Your House
So, what is the secret to avoiding all these headaches? It is simple. Work with a local real estate agent who knows the market inside and out, and who is going to be honest with you about how you should price your house.
You don’t want to partner with someone who just agrees to whatever number you throw out there. That is not an expert who is going to get you the best results.
You want an agent who recommends a price based on their expertise. The right agent will use real-time data from your local market to help you land on a price that makes sense — one that grabs attention, attracts buyers, and still helps you walk away with a great return. Someone who has been there and done that – and done it well. That is the agent you want to work with to market and sell your home.
Bottom Line
Remember, if the price isn’t compelling, it is not selling. Instead of shooting too high and scaring off buyers, work with a local agent who knows how to price it right.
Let’s team up and make sure your house hits the market with the right price, gets noticed, and gets sold.
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