The Costly Mistake Home Sellers Keep Making—And How to Avoid It

In the world of real estate, where every decision can mean the difference between a quick sale and months of frustration, one costly mistake continues to be made by sellers. Despite my gentle encouragement and advice, sellers consistently fall into the same trap: overpricing their homes "just to see what happens."

It's understandable. Your home is more than just a building—it's a place filled with memories, emotions, and value that often feels priceless. So, when it comes time to sell, it's natural to want to get the most money possible. The logic goes, "If I price it high, I can always negotiate down," or "I'll start high and see what kind of offers I get."

However, this approach often backfires; unfortunately, I can almost always predict what will happen next. Spoiler alert: It isn't the fairytale ending most sellers are hoping for.

The High Price of Overpricing

When you set the price of your home too high, it tends to sit on the market much longer than necessary. This extended market time is rarely beneficial and often detrimental. Here's why:

1. Buyers Are Discouraged: The first two weeks on the market are critical. During this time, your home gets the most attention, and buyers actively searching in your area will notice your listing. However, even the most interested buyers will be deterred if your price is too high. They might think, "There must be something wrong with the house," or "The sellers aren't serious about selling if they've priced it this high." This mindset leads buyers to skip over your property in favor of more realistically priced homes.

2. The Stigma of a Stale Listing: As the weeks go by without much interest, your home starts to develop the dreaded "stale" label. A property on the market for too long raises red flags for potential buyers. They might wonder why no one else has made an offer or assume there's an issue with the home that isn't immediately apparent. This stigma can be hard to shake, and it often leads to the next inevitable step—dropping the price.

3. The Inevitable Price Drop: After weeks or even months of little to no traffic, the realization is that the home is overpriced. At this point, a price drop becomes necessary to re-energize the listing. But here's the problem: by the time you lower the price, the initial excitement and interest in your property have waned. Buyers who were actively searching when your home first hit the market have likely moved on, and your home may continue to sit unsold. This is the opposite of what any seller wants when listing their home.

The Right Way to Price Your Home

The good news? It doesn't have to be this way. There's a proven strategy to avoid this pitfall, and it starts with pricing your home correctly from the start.

Here's how you can do it:

1. Work with an Experienced Agent: Your first step should be finding an agent who knows your neighborhood inside and out. An experienced real estate agent will have a deep understanding of your local market, including what similar homes are selling for, how long they're staying on the market, and what buyers in your area are looking for.

2. Trust the CMA: Your agent will provide you with a Comparative Market Analysis (CMA), which is a report that compares your home to similar properties in your area that have recently sold. The CMA is an invaluable tool for determining the right price for your home. It takes into account factors like square footage, the number of bedrooms and bathrooms, and any recent upgrades or renovations. By basing your asking price on the data in the CMA, you're far more likely to attract serious buyers and achieve a quick, successful sale.

3. Price It to Sell: Pricing your home correctly from the beginning is crucial. A well-priced home generates interest, encourages multiple offers, and can even lead to a bidding war. The goal is to price your home so that it stands out as a great value in the eyes of buyers without leaving money on the table.

When selling your home, overpricing is a mistake that can cost you time, money, and peace of mind. By setting a realistic price based on the expertise of a knowledgeable agent and a solid CMA, you can avoid the common pitfalls and ensure a smoother, more successful selling process.

Are you curious about your home's value? I'm here to help. Contact me, and I'll create a complimentary CMA report for you. There's no obligation—just valuable insights to show you what your home is worth in today's market. Let's work together to ensure your home sells quickly and for the best possible price.