In today’s housing market, one big mistake many sellers are making is overpricing their homes. This misstep can lead to your house sitting on the market without any bites, and before you know it, you might find yourself dropping the price just to spark some interest.

According to Realtor.com, more and more homeowners are realizing this mistake and are having to reduce their prices:

So, if you’re thinking about selling your place, here’s the scoop. To avoid this costly error, teaming up with a reliable real estate agent is key. Here’s why getting the price right matters:

Ignoring Current Market Trends

Keeping an eye on current market conditions is crucial. You don’t want to set your price based on what was happening during the pandemic. The market has changed a lot since then, so it’s smarter to align your price with today’s reality. Real estate agents are your best bet for staying in the loop on trends and how they affect your home’s pricing.

Pricing Based on Your Expectations

Another common mistake is setting a price based on what you want to make instead of what your home is truly worth. Just because other homes in your neighborhood are selling for big bucks doesn’t mean yours will too—especially if yours isn’t a waterfront property or doesn’t have a finished basement. As Bankrate puts it:

“How do you find that sweet spot of pricing for profit but not overpricing? The expertise of your agent can be truly valuable here. A knowledgeable agent will understand fair market value in your area and help you see what you might reasonably expect to get for your home in the current market.”

Your agent will conduct a comparative market analysis (CMA) to ensure your home is compared to truly similar properties, giving you a clearer picture of how to price it right.

Pricing High for Negotiation Room

Some sellers think it’s smart to price their home high on purpose to leave room for negotiation. But this strategy can backfire. A price that feels too steep might scare off potential buyers right from the get-go. U.S. News Real Estate explains:

“You want to sell your house for top dollar, but be realistic about its value and how buyers will perceive it. If you’ve overpriced your home, you’ll likely need to lower the price eventually, but the prime window of activity for new listings might already have passed.”

A good agent can help you set a fair price that attracts buyers and encourages competitive offers.

Bottom Line

Overpricing your home can lead to serious headaches. A skilled real estate agent offers an objective perspective, in-depth market knowledge, and a smart pricing strategy.

Let’s connect to make sure you avoid pricing pitfalls that could cost you in the long run!