Risks of Overpricing Your Home in Today’s Market
- Charles "Skip" Geiser
- 4 days ago
- 8 min read
Selling a home can be an exciting yet challenging process. One common mistake sellers make is setting the asking price too high. Overpricing your home may seem like a good strategy to maximize profit, but it often backfires. This post explains why overpricing your home is a bad plan and how it can hurt your chances of a successful sale.
How Overpricing Affects Buyer Interest
When a home is priced above its market value, it tends to attract fewer potential buyers. Buyers today have access to extensive online listings and market data. They quickly compare prices and features of similar homes in the area. If your home is priced too high, it will stand out as overpriced and discourage interest.
Homes that sit on the market for a long time often develop a stigma. Buyers may assume there is something wrong with the property or that the seller is unwilling to negotiate. This perception reduces the pool of serious buyers and can lead to even lower offers later.
Impact on Market Exposure and Marketing
Real estate agents often recommend pricing a home competitively to generate strong initial interest. A well-priced home can create a sense of urgency, leading to multiple offers and potentially a higher final sale price. Overpricing, on the other hand, limits showings and reduces the home's visibility.
Marketing efforts also suffer when a home is overpriced. Agents may hesitate to promote a listing that is unlikely to sell quickly. Online platforms rank listings based on engagement, so fewer views and inquiries can push your home lower in search results. This cycle further decreases exposure.
Consequences for Negotiations and Sale Timeline
Overpricing can extend the time your home remains on the market. The longer a property stays unsold, the more buyers question its value. Sellers may eventually have to reduce the price, sometimes multiple times, which can signal desperation.
This situation weakens your negotiating position. Buyers may offer well below your asking price, expecting further reductions. The drawn-out process can cause frustration and stress for sellers, delaying their plans to move or purchase another home.
Realistic Pricing Strategies That Work
Setting a realistic price based on current market conditions is crucial. Here are some practical tips:
Research Comparable Sales
Look at recent sales of similar homes in your neighborhood. Pay attention to size, condition, and features to find a fair price range.
Consult a Local Real Estate Agent
Experienced agents understand local market trends and can provide a competitive pricing recommendation.
Consider Market Demand
If the market favors buyers, pricing slightly below market value can attract more interest. In a seller’s market, pricing at or just above market value may work.
Be Open to Adjustments
Monitor buyer feedback and market activity. If your home isn’t attracting offers, be ready to adjust the price quickly.
Examples of Overpricing Pitfalls
A homeowner in a suburban area listed their property 15% above comparable homes. After three months with minimal interest, they reduced the price twice. Eventually, the home sold for 10% less than the original asking price. The delay caused inconvenience and financial strain.
In contrast, another seller priced their home slightly below market value. This strategy generated multiple offers within two weeks, leading to a sale above the asking price. The quick sale saved time and reduced stress.
Final Thoughts on Pricing Your Home
Overpricing your home can limit buyer interest, reduce marketing effectiveness, and prolong the sale process. Setting a realistic price based on market data and expert advice increases your chances of a timely and profitable sale. Sellers who price their homes fairly often attract more buyers and receive better offers.
If you are preparing to sell, focus on understanding your local market and pricing your home competitively. This approach helps you avoid the risks of overpricing and moves you closer to a successful sale.
Today's Pensacola Realtors MLS Information
Today's Active Homes For Sale
Escambia and Santa Rosa County
2658 ^ (13)
Low $49,900 - High $5,500,000
Above $600,000
514 ^ (4)
$500,000 - $599,999
169 (0)
$400,000 - $499,999
324 ^ (2)
$300,000 - $399,999
733 ^ (7)
$200,000 - $299,999
623 ^ (1)
$100,000 - $199,999
270 v (1)
Under $99,999
25 (0)
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Done...What Most Religions Don't Tell You About The Bible
Cary Schmidt's Introduction of Done
Don't Worry About Dying...You Will Live Forever...
It's All About Location, Location, Location!
God gave His only begotten Son Jesus Christ for us to be saved from this sinful world. Time is at Hand and while it is not too late, secure your salvation.
If you don’t know how to secure salvation, this simple easy to follow “ABCs of Salvation” will guide you on how to accept genuinely Jesus Christ as your Lord and personal Savior to secure salvation for you to surely go to Heaven.
But before going through the steps you might ask: Why do I need to Secure Salvation? And why do I need to go to heaven? This because:
You might be wealthy but it cannot be exchanged for your soul.
Whatever you have here on earth, they are nothing and there is no forever on Earth.
Kingdom of Heaven is more valuable than anything else.
It is appointed that we will die physicaly and we will be judged (Hebrews 9:27).
You only have two destinations: Heaven or Hell
Hell has no exit and Heaven has only one door – Jesus
So how to secure salvation?
A – ADMIT that you are a Sinner
B – BELIEVE on the Lord Jesus Christ
C – CONFESS with your mouth
D – DEPART from evil
A – ADMIT that you are a Sinner
We all have sinned.
17 For if by one man’s offence death reigned by one; much more they which receive abundance of grace and of the gift of righteousness shall reign in life by one, Jesus Christ.) 18 Therefore as by the offence of one judgment came upon all men to condemnation; even so by the righteousness of one the free gift came upon all men unto justification of life.
19 For as by one man’s disobedience many were made sinners, so by the obedience of one shall many be made righteous.
20 Moreover the law entered, that the offence might abound. But where sin abounded, grace did much more abound:
21That as sin hath reigned unto death, even so might grace reign through righteousness unto eternal life by Jesus Christ our Lord.
And no matter how you try to be good, you will still fail.
For all have sinned, and come short of the glory of God;Romans 3:23 KJV
You are still unclean.
But we are all as an unclean thing, and all our righteousnesses are as filthy rags; and we all do fade as a leaf; and our iniquities, like the wind, have taken us away.Isaiah 64:6 KJV
B – BELIEVE on the Lord Jesus Christ
God gave His only begotten Son Jesus Christ to save us. And through His blood, our sins washed away.
For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life.John 3:16 KJV
Only by His grace and not by works.
8 For by grace are ye saved through faith; and that not of yourselves: it is the gift of God: 9 Not of works, lest any man should boast. 10 For we are his workmanship, created in Christ Jesus unto good works, which God hath before ordained that we should walk in them.Ephesians 2:8-10 KJV
There is no other way but only through Jesus Christ alone.
Jesus saith unto him, I am the way, the truth, and the life: no man cometh unto the Father, but by me.John 14:6 KJV
God commended His love toward us.
But God commendeth his love toward us, in that, while we were yet sinners, Christ died for us.Romans 5:8 KJV
If we have Jesus Christ living in us, we will live eternally.
He that hath the Son hath life; and he that hath not the Son of God hath not life.1 John 5:12 KJV
In the power of our Lord Jesus Christ.For I verily, as absent in body, but present in spirit, have judged already, as though I were present, concerning him that hath so done this deed, In the name of our Lord Jesus Christ, when ye are gathered together, and my spirit, with the power of our Lord Jesus Christ, To deliver such an one unto Satan for the destruction of the flesh, that the spirit may be saved in the day of the Lord Jesus.1 Corinthians 5:3-5 KJV
By the blood of our Savior Jesus Christ
Not by works of righteousness which we have done, but according to his mercy he saved us, by the washing of regeneration, and renewing of the Holy Ghost; Which he shed on us abundantly through Jesus Christ our Saviour; That being justified by his grace, we should be made heirs according to the hope of eternal life.Titus 3:5-7 KJV
C – CONFESS with your mouth
Now that you accepted that you are a sinner and believe in the Lord Jesus Christ, confess with your mouth your sins and that you believe in Him. Let Him come to you and accept Him as your Lord and personal Savior.
If we confess our sins, he is faithful and just to forgive us our sins, and to cleanse us from all unrighteousness.1 John 1:9 KJV
9 That if thou shalt confess with thy mouth the Lord Jesus, and shalt believe in thine heart that God hath raised him from the dead, thou shalt be saved. 10 For with the heart man believeth unto righteousness; and with the mouth confession is made unto salvation.11 For the scripture saith, Whosoever believeth on him shall not be ashamed. Romans 10:9-11 KJV
Now do the Sinner’s Prayer:
Holy, thoughtful, gracious, and Heavenly Father, I recognize and acknowledge I am a miscreant not deserving of your grace and I ask forgiveness of my sins. I know your son is the truth the light and the way, I give myself freely to His control and welcome him into my heart. I ask you to walk with me and guide me, teach me your way and your truth. Thank you for the gift of your Son’s sacrifice on the cross that I may live. Thank you for your forgiveness and for accepting me as your child. Amen.
Now that you are saved and you have Jesus Christ living in you, you should not stop there. What is next? Follow Him, His words, submit yourself, and don’t forget to
D – DEPART from evil
This is not part of the step to secure salvation but it is a way of proving yourself that you are now truly of Christ. Forget your past and follow Him.
Depart from evil, and do good; seek peace, and pursue it.Psalms 34:14 KJV
Therefore if any man be in Christ, he is a new creature: old things are passed away; behold, all things are become new.2 Corinthians 5:17 KJV
(For he saith, I have heard thee in a time accepted, and in the day of salvation have I succoured thee: behold, now is the accepted time; behold, now is the day of salvation.) 2 Corinthians 6:2 KJV
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This article provides information and opinions but is not meant as investment advice. Skip Geiser LLC, Charles "Skip" Geiser or Plum Tree Real Estate Marketing does not assure the accuracy or completeness of the information or opinions presented here. It is important to conduct your own research, due diligence, and seek professional advice before making any investment decisions. Skip Geiser LLC, Charles "Skip" Geiser or Plum Tree Real Estate Marketing is not responsible for any loss or damage resulting from relying on the information or opinions in this article.