Overpricing Your Home: Why It Leads to Longer Sales & Less Money
The Hidden Costs of Ignoring Expert Pricing Advice
Ignoring your agent’s pricing advice costs time and money. Trust Shannon Barnum and Modern Market REALTORS® to guide your home sale with proven strategies that deliver faster results and better profits.
Listen up, homeowners: Think you’re smarter than your real estate agent when it comes to pricing your house? You’re not. Blow off their expert advice, and you’re practically begging for your home to rot on the market while your bank account takes a nosedive. Overpricing isn’t just a rookie mistake—it’s a self-inflicted wound that can cost you months of time, thousands of dollars, and a whole lot of pride. Here’s the unfiltered truth, straight from the real estate jungle, backed by hard data and market trends.
Table of Contents
Why Pricing Matters More Than You Think
In real estate, price is king. Set it too high, and you’re screaming “stay away” to buyers who are already scrolling through Zillow with hawk-like precision. Your agent isn’t just pulling numbers out of thin air—they’re crunching data on comparable sales (comps), market conditions, and buyer behavior to find the sweet spot that gets your home sold fast and for top dollar. Ignore that, and you’re not just gambling with your sale—you’re setting yourself up for a brutal reality check.
The Data Doesn’t Lie
According to a 2023 study from the National Association of Realtors (NAR), homes priced accurately—within 1-3% of market value—sell within 30-60 days in most markets. But homes priced 10% above market value? They languish for an average of 68 days longer. That’s over two months of your home sitting like a wallflower at the real estate dance, while buyers flock to better-priced listings.
Redfin’s 2024 data paints an even uglier picture: homes that needed price reductions sold for 4-6% less than their original asking price on average. That means a $500,000 home could end up selling for $470,000-$480,000 after months of price cuts and buyer skepticism. Overpricing doesn’t just delay your sale—it chips away at your bottom line.
Buyer Psychology: The Silent Killer
Buyers aren’t dumb. They’ve got apps, alerts, and a sixth sense for sniffing out overpriced listings. When your home’s priced too high, it’s not just sitting there looking pretty—it’s raising red flags. “What’s wrong with this place?” they wonder. “Why hasn’t it sold?” A home that lingers too long becomes “stale,” and in real estate, stale is the kiss of death. Buyers assume there’s a hidden flaw—leaky pipes, bad vibes, or just a seller who’s out of touch—and they either lowball you or ghost you entirely.
The Stale Listing Stigma
Once a listing goes stale, it’s like trying to sell day-old sushi. The longer it sits, the worse it smells to buyers. They start digging into the listing history, seeing every price cut and every day on the market (DOM) ticking up. In 2024, homes with 90+ DOM sold for an average of 8% less than their initial list price, per Zillow data. That’s because buyers know they’ve got the upper hand—they can smell the desperation from a mile away.
The Hidden Costs of Overpricing
Think sitting on the market is just a waiting game? Wrong. Every month your home doesn’t sell, you’re bleeding cash. Here’s the breakdown of what overpricing really costs you.
Carrying Costs: The Silent Budget-Killer
Owning a home isn’t cheap, and when it’s not selling, those bills keep piling up. We’re talking mortgage payments, property taxes, homeowners insurance, utilities, and maintenance. For a $500,000 home, monthly carrying costs can easily hit $2,000-$3,000, depending on your mortgage rate and local taxes. If your home sits for an extra six months, that’s $12,000-$18,000 down the drain—money you’ll never get back.
And don’t forget the upkeep. An empty house still needs mowing, cleaning, and repairs to stay show-ready. Neglect it, and you’re handing buyers another reason to lowball you or walk away.
Extra Marketing Expenses
Stale listings often need a facelift to regain buyer interest. That could mean shelling out for professional staging (averaging $1,500-$3,000), new photos, or even a fresh marketing campaign to rekindle buzz. Your agent might push for open houses or boosted online ads, all of which cost time and money. If you’d priced it right from the start, you could’ve skipped this headache altogether.
Opportunity Costs: What You’re Missing Out On
While your home sits unsold, you’re not just losing money—you’re losing time. Maybe you’re delaying a move to your dream home, missing out on low interest rates, or stuck paying rent elsewhere while your old place gathers dust. Every day your home lingers is a day you’re not moving forward with your life.
The Ripple Effect of Overpricing
Overpricing doesn’t just hurt your wallet—it messes with the whole sale process. Here’s how it snowballs.
Fewer Showings, Fewer Offers
Buyers shop by price range. If your $500,000 home is listed at $550,000, you’re not even showing up in their searches. Fewer showings mean fewer offers, and in a competitive market, that’s a death sentence. NAR data shows that homes priced correctly get 3-5 offers on average, while overpriced homes might get one—or none. Without multiple offers, you lose the chance for a bidding war that could drive the price up.
Price Cuts Signal Weakness
Once you realize your home’s overpriced and start slashing the price, buyers notice. Every cut tells them you’re desperate, and they’ll swoop in with offers well below your new asking price. A 2025 fargohomesearch.com report found that 60% of buyers offered less than the asking price on homes that had been reduced at least once. You’re not just lowering your price—you’re inviting bargain hunters to lowball you.
Market Shifts Can Bury You
Real estate markets are fickle. If you overprice during a hot seller’s market and miss the wave, you could be stuck selling in a cooler market with more competition and fewer buyers. Interest rates, inventory levels, and buyer demand can shift fast—Shannon Barnum with Modern Market REALTORS® noted a 2% drop in median home prices in some markets from mid-2024 to mid-2025. Waiting too long could mean selling for even less than you would’ve gotten with a realistic price from the start.
Why Listening to Your Agent Pays Off
Your agent isn’t just a middleman—they’re your guide through the real estate jungle. Their pricing advice comes from crunching comps, tracking local trends, and knowing what buyers want. When you price in line with their recommendation, magic happens.
More Showings, More Buzz
A well-priced home is like catnip for buyers. It pops up in their searches, gets more clicks, and draws crowds to open houses. NAR data shows that homes priced at or below market value get 50% more showings than overpriced ones. More showings mean more offers, and in a hot market, that can spark a bidding war that pushes your sale price above asking.
Case Study: The Power of Pricing Right
Take a 2025 example from Redfin: A Seattle homeowner listed their 3-bedroom home for $650,000, following their agent’s advice based on recent comps. The home got 12 offers in a week and sold for $685,000 after a bidding war. Meanwhile, a similar home nearby listed at $725,000 sat for 90 days, needed two price cuts, and sold for $640,000. The lesson? Pricing right from the jump can net you tens of thousands more.
How to Avoid the Overpricing Trap
Want to sell quickly and for top dollar? The secret isn’t flashy marketing or endless open houses—it’s starting with the right price. Here are the key steps to keep your listing competitive and appealing to buyers from day one.
Trust the Comps
Your real estate agent’s “comps” (comparable sales) aren’t guesswork—they’re hard data pulled from homes like yours that have actually sold in your neighborhood. Comps reflect what buyers are willing to pay right now, not what you wish your home is worth. A three-bedroom ranch down the street that sold last month is a much stronger pricing guide than your tax assessment or the upgrades you personally value. Reviewing comps with your agent ensures your price is rooted in reality, not just optimism. If you think a comp doesn’t apply, ask your agent to explain why it was included—you’ll learn how buyers really evaluate value.
Know Your Market
Every real estate market has its own rhythm. In a seller’s market, where homes are scarce and demand is high, buyers are often willing to pay list price—or even more. In a buyer’s market, with more inventory than demand, buyers have the upper hand and overpricing can push your home to the bottom of the list. Mortgage rates, seasonal trends, and local job growth all play into this balance. For example, if interest rates are rising, buyers may be stretched thin, making it even more important to keep your price competitive. Your agent tracks these market signals daily—lean on their expertise to time and price your home strategically.
Set Realistic Expectations
It’s natural to think your home is worth more because of the memories, the sweat equity, or the money you’ve poured into upgrades. But buyers see your home through a different lens. That custom kitchen backsplash you adore? They might see it as something to rip out. A finished basement that added thousands in cost may not return that same value at resale if buyers don’t prioritize it. Setting realistic expectations means pricing based on market value, not personal attachment. Remember: a properly priced home often sells faster, sometimes sparking multiple offers that push the final price higher than if you had started too high and dropped later.
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IDX MLS IDX Listing Disclosure © 2025
The data relating to real estate for sale on this web site comes in part from the Broker Reciprocity SM Program of the Regional Multiple Listing Service of Minnesota, Inc. The information provided is deemed reliable but not guaranteed. Properties subject to prior sale, change or withdrawal. ©2024 Regional Multiple Listing Service of Minnesota, Inc All rights reserved.
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Sold a Single Family home in Bennett, Fargo, ND.
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Jim and Shannon are some of the best people I have ever worked with! We worked with them to sell our house and find our home in the country that exceeded our expectations.
During the whole process, they were continuously engaged with us and always willing to answer any questions or concerns that we had.
If we ever decide to move again, I already know who I will be calling and would recommend them to anyone looking to sell/buy a new home as you will be in good hands!
FAQ: Pricing Your Home for Sale
Why do agents recommend lower prices than I expect?
Agents base their pricing on comps and market trends, not your home’s sentimental value or upgrades. They aim to attract buyers and spark offers, which often leads to a higher final sale price.
How long is too long for a home to stay on the market?
It depends on your market, but homes lingering beyond 60-90 days are often seen as stale, reducing buyer interest and leading to lower offers.
Can’t I just lower the price later if it doesn’t sell?
Price cuts signal desperation to buyers, often leading to lowball offers. Homes needing reductions sell for less than those priced right initially, per 2024 Redfin data.
What if I think my home is worth more than the comps?
Comps reflect actual buyer behavior, not your home’s unique features. Discuss your concerns with your agent, but trust the data to avoid overpricing.
In the end, overpricing your home is like betting against the house in Vegas—you might feel lucky, but the odds are stacked against you. Trust your agent, price it right, and watch your home sell faster and for more. Ignore their advice, and you’re signing up for a long, costly slog. The choice is yours, but the market doesn’t play favorites.
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