When you list your home, the goal is pretty simple—you want it to sell fast and for top dollar. But right now, a lot of sellers are aiming too high without realizing the market has changed. Inventory has gone up, and as a result, we’re seeing more and more price cuts. The thing is, those price drops don’t have to happen. Here’s why.
Realtor.com data shows that in February, price cuts hit their highest level for any February since 2019 (check out the graph below):
Since 2019 was the last "normal" year for the housing market, that’s a pretty big deal. It means we’re finally getting back to what’s typical.
The market isn’t as crazy as it was a few years ago. You might not get the same high price your neighbor did during the peak of the pandemic, so it’s important to adjust your expectations.
Here’s the thing—if you price too high and then have to drop it later, you might actually end up with lower offers than if you had just priced it right from the start. So how do you avoid that? Simple: trust your agent.
How Your Agent Helps You Price It Right
A great agent doesn’t just guess a number—they use real data and market trends to price your home based on its actual value today. That way, you’re setting a realistic price that attracts serious buyers.
Your agent will analyze the local market and might even suggest pricing slightly below market value to draw more attention and spark competitive offers. Here’s how they’ll figure out the right price for your home:
- They check recent sales. What did similar homes in your area actually sell for—not just what they were listed at, but the final sale price?
- They look at local market trends. Your home’s value isn’t just about what you hope to get for it—it’s about what buyers in your area are actually willing to pay.
- They create the right strategy. Your agent will price your home to grab attention and create a sense of urgency with buyers.
Why Overpricing Can Hurt You
Unfortunately, some sellers still ignore their agent’s advice and choose to price high just to see what happens. They’re hoping to either get their full asking price or have more room to negotiate. But pricing too high usually ends up costing you, and here’s why:
- Buyers might not even consider it. Today’s buyers are more budget-conscious than ever, so if they think a home is overpriced, they’ll probably just pass on it instead of trying to negotiate.
- It could sit on the market too long. The longer your home stays unsold, the more buyers might start thinking there’s something wrong with it, which can make it even harder to sell later.
- You could end up with less. Homes that need a price cut often end up selling for less than they would have if they had been priced right from the beginning.
You can see this play out in the graph below. It uses data from the National Association of Realtors (NAR) to show that the longer a home sits on the market, the lower its selling price tends to be:
This graph shows that homes that sell within the first 4 weeks typically go for full price. From experience, that’s what usually happens when a home is priced at or just below the current market value. When it’s priced right, buyers take notice and are often willing to pay the asking price—or even compete with each other and offer more.
But if a home isn’t priced right, it won’t sell as quickly. This graph shows that after the first 4 weeks, the price usually starts to drop. That’s because buyer interest tends to fade the longer it sits on the market. So, sellers often end up either accepting a lower offer because it’s the best they’ve got or dropping the price to try to attract more buyers.
Bottom Line
The last thing you want is to list too high, watch your house sit on the market, and then have to drop the price just to get noticed. Let’s connect to make sure that doesn’t happen to you.Want to sell your home quickly and for the best price? Let’s talk about the right pricing strategy for your place.
