The Number One Mistake Sellers Are Making: Overpricing Their House

In today’s housing market, pricing your home correctly is more important than ever. As a realtor here in Iowa, I’ve seen firsthand how overpricing can lead to a home sitting on the market for far too long. And when that happens, sellers often have to drop the price—sometimes multiple times—to regain buyer interest.

I want to help you avoid that mistake. Let me share some insights on why pricing right from the start is key to selling your home quickly and at a competitive price.

Data from Realtor.com shows the number of homeowners realizing this mistake and doing a price reduction is climbing (see graph below):

If you’re thinking about making a move yourself, here’s what you need to know. The best way to avoid making a costly mistake is to work with a trusted real estate agent to find the right price. Here’s a look at what’s at stake if you don’t.

Not Paying Attention to Current Market Conditions

One of the biggest errors I see is when sellers set their price based on outdated market trends. You might remember the hot market during the pandemic, but things have cooled down since then. Today’s market has moderated, and pricing your home based on those old conditions could hurt your chances of selling.

As a real estate agent, I keep up with the latest market trends and can help you understand what homes are truly selling for right now. That way, we can set a price that attracts the right buyers from the start.

Pricing It Based on What You Want To Make (Not What It’s Worth)

Another misstep is pricing it based on what you want to make on the sale, and not necessarily current market value. You may see other homes in your neighborhood selling for top dollar and assume yours can do the same. But you may not be considering differences in size, condition, and features. For example, maybe that other house is waterfront or has a finished basement. To sum it up, Bankrate explains:

“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, how much your house is worth and how much you might reasonably expect to get for it in the current market.”

That’s why I always conduct a Comparative Market Analysis (CMA) to give you a realistic look at how much your home is worth. By comparing it to similar properties, I can help ensure your price is competitive and aligned with the current market.

Pricing High to Leave Room for Negotiation

Another common, yet misguided strategy is to price your house high on purpose, so you have more room to negotiate down during the sale. But this can backfire. A price that seems too high often deters potential buyers from even considering the home. So rather than leaving room for negotiation, what you’ll actually be doing is turning buyers away. U.S. News Real Estate explains:

“You want to sell your house for top dollar, but be realistic about the value of the property and how buyers will see it. If you've overpriced your home, chances are you'll eventually need to lower the number, but the peak period of activity that a new listing experiences is already gone.”

Instead, setting a fair, market-driven price from the start can attract more buyers and encourage competitive offers. My goal is to help you price your home in a way that generates interest and maximizes your potential return.

Bottom Line

Overpricing your home can lead to missed opportunities and longer days on the market. With my knowledge of the local Iowa market and years of experience, I’ll bring an objective perspective and help you set a price that reflects your home’s true value.

Let’s connect so I can help you avoid the pitfalls of overpricing and get your home sold quickly and for the best possible price.